NO.004

QUEENSLAND GOVERNMENT HIKES TAXES WHILST RECEIVING GST WINDFALL

The Beattie government will receive a GST windfall of $334 million in 2003-04.

In 2003-04 the Queensland Government has forecast a cash surplus of $216 million.

The whole of that surplus is comprised of the $334 million GST windfall. If

it were not for this funding over and above Queensland entitlements from the

old tax system the Queensland government would be recording another (third)

budget deficit in cash terms.

It is extraordinary that the Queensland Government now receives over $6 billion

per year in GST revenue and Mr Beattie is still introducing new taxes like the

ambulance tax to cover his financial problems.

The Queensland Government has had to resort to massive revenue increases to

pay for its financial blowout.

The stamp duty on the median house in Brisbane when Mr Beattie was elected

was $3,780. Today that same house is hit with $9,500 in stamp duty. Revenues

from stamp duty on land transfers amassed $1,220 million in 2003-04 –

that’s a 74% increase over the last three years.

Whilst the benefits of GST should be leading to tax reductions in Queensland,

the Queensland Government is taking that windfall and hiking taxes in addition.

QUEENSLAND

22 January 2004

Contact: David Alexander 0418 210 601