Eric Ripper

Eric Ripper

Deputy Premier; Treasurer; Minister for State Development

    Immature Opposition caught out on tax claims

    5/03/2008 12:00 AM
     

    Treasurer Eric Ripper today labelled the State Opposition’s claims that stamp duty rates were responsible for a reduction in Western Australia’s GST share as absurd and deliberately misleading.

     

    “This is a classic example of an inexperienced and immature Opposition which either naively misunderstands the system or simply fabricates the claim that stamp duty rates are responsible for the State losing a huge share of GST funding,” Mr Ripper said.

     

    “It is not the level of taxes that drives our GST share, rather our capacity to raise revenue.

     

    “The fact is that even if our taxes were reduced to zero, it would make virtually no difference at all to our share of GST funding.

     

    “If the Opposition had any shred of basic financial understanding they would realise that.

     

    “It doesn’t take much to work out that if it were the case that stamp duty rates reduced the States’ GST share, there would be an endless competition between States to cut taxes, knowing that the GST payments would then compensate.”

     

    WA could lose up to $6billion over five years if the trend confirmed in the Commonwealth Grants Commission funding update announced yesterday continues as expected.

     

    Western Australia’s share of the GST could be slashed to 5.8 per cent by 2011-12 – just over half the State’s share of the national population of 10.2 per cent.

     

    “If that trend continues, we will ultimately be losing the equivalent of almost four Perth-to-Mandurah railway lines, more than five new football stadiums or about 12 new museums,” Mr Ripper said.

     

    “We are paying a heavy price indeed for the economic success of WA.”

     

    Treasurer's Office - 9222 8788