You wanna talk about a real tax rip off?!

[Skids]

The GST distribution is a joke.....

In a distribution update released this morning, the Commonwealth Grants Commission has decided WA’s share of the nation’s GST revenue will slightly increase in 2016-17 to 30.3 cents for every $1 that the State generates.

This is only marginally higher than the record low of 29.9 cents that WA is receiving in the current year.

All up, WA will receive just $2.04 billion of the total GST pool of $60.7 billion next year, or a puny 3.4 per cent.

By comparison, NSW will get $17.6 billion of the GST in 2016-17, or 90.4 cents for every dollar it generates.


Victoria will get $13.9 billion (90.9 cents), Queensland $14.3 billion ($1.17) and South Australia $6.1 billion ($1.41).


How the hell do they work that out!??

[think positive]

Not many people live there?

[Skids]

[David]

Time to secede, I'd say. WA have been threatening to do that for decades, haven't they?

[5150]

WA should toll the Nullabor to compensate.
Either pay up or turn around and drive home.

[stui magpie]

Not trying to justify it, just explain why it may be, there's a lot of companies in WA that would generate more GST per capita than many other states. WA also has (I think) reasonably low unemployment compared to Sth Aus.

You didn't mention Tassie, I wouldn't be surprised if they got close to $2 for every dollar they paid as they have high unemployment and not a lot of big industry.

Just having a stab.

[nomadjack]

They work out an Australia wide average of what it costs to deliver a base level of services for starters. The assumption being that everyone deserves equal access to government services. They then adjust the per capita distribution based on each state's ability to raise its own revenue, the extra or lower costs that come from population distribution, level of socio-economic disadvantage etc, and allocate accordingly. WA does relatively badly because of the mining royalties they have access to.

[Skids]

With the current iron ore price WA will get around $2 billion less this financial year than last.
That's the whole GST income.

[nomadjack]

It takes prices into account but there is a lag effect. Further info here if you're interested...
https://cgc.gov.au/index.php?option=com_content&view=article&id=36&Itemid=152

[Skids]

Cheers mate.