The Hon. Rob Lucas MLC

The Hon

Rob Lucas MLC

Treasurer

Media Releases

Marshall Government to tell meeting of all Treasurers ‘no change to GST deal’

Thursday, 5 April 2018

State Treasurer Rob Lucas will tell a meeting of all Treasurers in Melbourne today that the Marshall Government will oppose strongly any proposal to change the current agreed GST distribution deal.
 
“The Marshall Government will not support any policy that disadvantages South Australia and reduces the level of expected funding expected under the current GST distribution deal,” said Treasurer Rob Lucas.
 
“We understand the 2018 Commonwealth Grants Commission update to be released soon confirms that the Horizontal Fiscal Equalization (HFE) system is working exactly as intended.
 
“Western Australia has received a massive increase in its share of GST revenue as a result of the downturn in its mining royalty revenues in recent years. And the strength of the property market in NSW in recent years has seen their share of the GST decline.
 
“This is exactly how the system is supposed to operate – it responds to the differing circumstances of each state over the past three years.
 
“This highlights that there is absolutely no need to change the system as it ensures that every Australian can have the same access to hospitals, schools and other vital public services no matter which state they reside in.
 
“It was for this reason that then Premier John Olsen and myself as Treasurer signed up to the original GST deal because SA’s interests would be protected by the need for all Governments to agree before this principle could be changed.
 
“For almost 20 years Federal Governments – both Liberal and Labor – have respected the Intergovernmental Agreement on the GST deal and it would be unconscionable if the current Federal Government would become the first to break the deal.”
 
It’s understood the 2018 update for SA reveals a moderate decline in GST revenue in 2017-18 but a slightly bigger increase for 2018-19.
 
Treasury has advised that much of the growth in GST revenue in 2018-19 compared to 2017-18 had already been factored into budget estimates as part of the Mid Year Budget Review. 
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