The Hon. Rob Lucas MLC

The Hon

Rob Lucas MLC


Media Releases

$329 million GST write-down for next year

Friday, 1 March 2019

Latest figures released by the independent Commonwealth Grants Commission (CGC) estimate a cut of $329 million next year (2019-20) in total GST funding to South Australia.

The CGC has released its 2019 Relativity update which estimates that SA will get $6,946 million in GST funding next year, compared with the estimate of $7,275 million included in SA’s Mid-Year Budget Review, released in December 2018.

These Relativity updates are issued every year and the CGC has amended our relativity factor from 1.477 to 1.465 which, together with a smaller total GST pool has led to the significant reduction in GST funding to SA.

“We won’t know the final estimate of GST funding for next year until the Commonwealth Government releases its budget in April this year,” said Treasurer Rob Lucas.

“Given these relativity updates are issued every year, it is not possible to predict what the CGC will decide for future years. The CGC Report does not include forecasts for any future years.

“The estimated cut in GST funding for this year (2018-19) is much smaller at about $72 million and the State Government remains committed to delivering a surplus budget.

“There is no question that the forecast significant cut in GST funding next year will make the task of budget repair even more challenging.

“Clearly, it is imperative that all departments deliver on the important savings task which were outlined in last year’s budget and we will also need to increase revenue by growing our economy as promised.

“Union bosses will also need to accept that taxpayers will not be able to afford excessive enterprise bargaining demands which go beyond what the budget is able to afford.”


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