WA’s Share Of GST Revenue To Be Just 4.9 % Of The National Pool By 2013-14

WA’s Share Of GST Revenue To Be Just 4.9 % Of The National Pool By 2013-14

Western Australia Treasurer Christian Porter

AAA Credit Rating Remains On Track

Victor P Taffa

International Credit Ratings Agency Moody’s Investor Services (Moody’s) has re-affirmed the Western Australian Government’s Triple-AAA Credit Rating, stating the outlook for the rating was stable.

Moody’s assessed the State Government as having ‘ample budget flexibility’, ‘a diverse export and natural resource-based economy’ and ‘manageable, albeit rising debt burden.’

Treasurer Christian Porter said Moody’s also found the WA Government to be well placed compared to most Australian States and Territories.

“However, Moody’s highlighted key challenges to the financial outlook for the State.” Mr. Porter said.

“In particular, the combined impact of strong population growth on infrastructure and services and the declining share of GST revenue, means the State’s debt levels are set to increase.”

“WA’s Declining Share of GST is predicted to be just 4.9 % of the National Pool by 2013-14, which will have a significant and multi-billion effects on WA’s Revenue Levels.”

The Treasurer said the increasing burden of taxpayer funded subsidies to utilities would also have significant financial impacts on State debt over the coming years.

“Unfortunately the cost of supplying electricity is not cheap and the taxpayer, along with the Liberal-National Government, is now bearing the burden of the previous Labor Government keeping utility tariffs artificially low while they were in Government.” Mr. Porter said.

“However, due to the disciplined financial management of the Liberal-National Government, we have retained our Triple-AAA Credit Rating and we will continue to provide the infrastructure and services to support our growing State and ensure a prosperous economy for future generations.” Mr. Porter said.

The Moody’s report follows a Triple-AAA assessment by ratings agency Standard and Poor’s in December last year.