NO.073

Now we know what Labor’s “roll-back” means: stealing the revenue from

the States and keeping it all for themselves.

Labor’s policy document Platform 2000 promises to “Maintain a system of

general purpose funding to the States and Territories which provides adequate funding for

their needs.”

What Labor does not promise is to pay the States the growth revenue of Goods and

Services Tax.

Funding for public hospitals, public schools, and roads would therefore be cut by a

Federal Labor Government which will not commit to pay GST revenue to the States and

Territories.

Under present policy both the rate and base of GST are locked in, and can only be

changed with the agreement of every State and Territory.

What Labor would do is remove that lock-in mechanism, making it possible for the Labor

Party to increase both the rate and base.

States and Territories have for many years pleaded for a guaranteed source of revenue

which would grow in line with the economy and provide a secure form of revenue.

On 1 July this became a reality. If Labor is ever elected this would be abolished.

CANBERRA

7 July 2000