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Budget, Tax Cuts, Leadership, Wages, Superannuation, Sydney AirportJuly 28, 2000
States Receive First Payment of GST Revenue
The States and Territories (States) will today receive their first payment of GST
revenue, as part of the Governments important reforms to Commonwealth-State
Under The New Tax System, all GST revenue is paid to the States. This means that
States will have access to a secure revenue base to enable them to fund essential services
such as schools, hospitals, roads and police. They will no longer need to rely on
financial assistance grants from the Commonwealth and some of their own inefficient taxes
which are to be abolished.
At the same time, the Commonwealth has guaranteed that in each of the transitional
years following the introduction of the GST, each States budgetary position will be
no worse off than if the Government had not reformed Commonwealth-State financial
relations. To meet this guarantee, a total of $2.65 billion of budget balancing assistance
was forwarded to the States on 4 July 2000.
The States will share an expected $24 billion of GST revenue in 2000-01. The revenue is
to be distributed in accordance with the GST relativities recommended by the Commonwealth
Todays payment of more than $109 million represents GST collected by the
Australian Customs Service on taxable importations.
27 July 2000
Contact: David Alexander (0418 210 601)