NO.032

New spending announcements announced today by the Victorian Government are

funded from the New Tax System introduced by the Commonwealth Government.

The Victorian Government has already received $4,401,417,000 in GST from the

Commonwealth. Every dollar of GST collected goes directly to the States. Next

year GST payments for the Victorian Government will total $5,940,500,000.

The Commonwealths New Tax System also pays Victoria to abolish State taxes

such as Financial Institutions Duty and stamp duties on marketable securities on

1 July this year. It allows the Victorian Government to plan for future spending

increases or tax cuts.

The GST is right now paying for Victorian schools, hospitals, roads, and

environmental protection, as well as paying the salaries of State government

employees such as police and nurses.

The biggest threat to these Victorian public services is Kim Beazleys

proposed rollback of the GST, which would, by definition, reduce revenue and

reduce services to Victoria.

CANBERRA

15 May 2001