commission on fiscal imbalance 合集

16 the financial implications of the iga package are

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Unformatted text preview: on (HFE) principles; Transfer to the States of responsibility for funding a new First Home Owner Scheme (FHOS); Compensation of the Commonwealth by the States for Australian Taxation Office (ATO) costs incurred in administering the GST; and Provisions to ensure that no State budgetary position would deteriorate during the transitional period of implementation of the IGA package. As a result of what might be called the “Democrat Amendments” the range of State taxes originally proposed to be abolished was substantially reduced. Table 2 presents a summary of agreed Commonwealth-State financial reform measures arising from the final Agreement. 116 Commission on Fiscal Imbalance TABLE 2 AGREED COMMONWEALTH-STATE FINANCIAL REFORM MEASURES Measure Impact of Changes on States’ Budgets Date NEW COMMONWEALTH TAX GST levied by Commonwealth Replacement of FAGs by GST revenue grants 1 July 2000 Loss of WST Tax equivalent payments from PTEs Loss of RRPs 1 July 2000 1 July 2000 Bed Taxes (NSW and NT) Loss of own-source revenues 1 July 2000 Financial institutions duty Loss of own-source revenues 1 July 2001 Stamp duty on quoted marketable securities Loss of own-source revenues 1 July 2001 Debits tax Loss of own-source revenues 1 July 2005 Reduction of own-source revenues as a result of reduction in tax rate 1 July 2000 First Home Owners Scheme Increase in expenditure 1 July 2000 Contribution to Commonwealth for ATO costs of collection of GST Increase in expenditure 1 July 2000 COMMONWEALTH TAXES TO BE ABOLISHED Wholesale sales tax Revenue Replacement Payments STATES TAXES TO BE ABOLISHED REDUCTION OF STATES REVENUE Gambling tax arrangements (partial reduction) NEW STATE EXPENDITURE RESPONSIBILITIES STATES TAXES TO BE REVIEWED FOR NEED FOR RETENTION BY 2005 Stamp duty on non-quoted marketable securities Stamp duty on non-residential conveyances Stamp duty on credit arrangements, instalment purchase arrangements and rental (hiring) agreements Stamp duty on leases Stamp duties on mortgages, bonds, debentures and other loan securities Stamp duties on cheques, bills of exchange and promissory notes Source: Commonwealth Grants Commission (1999:1), p. 16 The financial implications of the IGA package are examined in considerable detail in the next section. 117 Commission on Fiscal Imbalance 3. THE REVENUE AND EXPENDITURE IMPLICATIONS OF THE INTERGOVERNMENTAL AGREEMENT The latest published estimates of the financial outcomes resulting from the IGA are presented below. Table 3 presents estimates of GST revenue for the years to 2003-04. TABLE 3 GST REVENUE, ACTUAL OR FORECAST, 2000-01 TO 2003-04 2000-01 $M GST revenue Source: Budget Paper No. 3, 2001-02, Table A1. 2001-02 2001-02 $M % increase 24,180 27,480 13.6 2002-03 2002-03 $M % increase 29,170 2003-04 2003-04 $M % increase 6.1 30,830 5.7 The IGA provides that the States’ budgets will be no worse off after the implementation of the GST until such time as GST revenue exceeds the funding which would have been available to th...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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