The Federal Budget confirms an additional unexpected GST bonus of $219 million for South Australia over the next four years, Shadow Treasurer Rob Lucas said today.
“The Federal Budget figures show that the net gain to the state from the GST deal will be $1,123m over the four years from 2006-07 to 2009-10,” Mr Lucas said.
Net gain from GST deal ($m)
“The State Budget figures last May indicated a net gain from the GST deal over the four years of $904m.
“It is interesting to note that the annual net benefit from the GST deal continues to grow every year and will actually be $352.9m in four years’ time.
“The Rann Government’s long-term opposition to the GST deal is well known. For example, on 21 November 2003 Mr Rann told 5DN:
“… the GST deal was a total lemon for South Australia … that was supposed to replace existing taxes and give us more taxes … we actually get less …”
“Most economic commentators have acknowledged that the decisions by the former Liberal Government for the GST deal and the reduction of the State Bank debt were the primary reasons for the state regaining its AAA credit rating.
“The extent of the net gain from the GST deal for the seven-year period from 2003-04 to 2009-10 is a staggering $1,537m according to the Federal Government.
“It is clear that the Rann Government is ‘drowning in’ a large pool of GST money and sadly the Rann Government is wasting most of it on projects such as opening bridges and tramline extensions.”