commission on fiscal imbalance 合集

Reform measures the following reform measures are

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Unformatted text preview: ation Paper TRP 00-3, December. Searle, R.J. (1998), Commonwealth-State Financial Relations and the Goods and Services Tax, paper presented at the National Tax Workshop of the Australian National University North Australia Research Unit, December. Tait, A.A. (1972), Value-added Tax, McGraw Hill. Taxation Review Committee (1975), Full Report 31 January 1975, A.G.P.S. Warren, N.A. (ed.) (1997), Reshaping Fiscal Federalism in Australia, Australian Tax Research Foundation Conference Series No. 20. Warren, N.A. (ed.) (1999), State Taxation, Repeal, Reform or Resignation, Australian Tax Research Foundation Conference Series No. 21. 139 Commission on Fiscal Imbalance APPENDIX A: SUMMARY OF THE INTERGOVERNMENTAL AGREEMENT ON THE REFORM OF COMMONWEALTH-STATE FINANCIAL RELATIONS The Agreement relates to the reform of Commonwealth-State financial relations consequent upon the introduction of the Commonwealth Government’s A New Tax System (ANTS) package and, in particular, of the GST. The original agreement between the Commonwealth and the States and Territories was signed on 9 April 1999. It was revised in the light of the changes to the ANTS package (particularly to narrowing of the GST base) announced by the Prime Minister, Mr Howard on 28 May 1999, and signed on 20 June 1999. It is reproduced as Schedule 2 of A New Tax System (Commonwealth State Financial Arrangements) Act 1999. Objectives The objectives of the reforms contained in the Agreement are: ♦ achievement of a new national tax system, including the elimination of a number of existing inefficient taxes; ♦ provision to State Governments of a more robust tax base, that can be expected to grow over time; and ♦ an improvement, once the transitional changes have been completed, in the financial position of all State Governments. Reform measures The following reform measures are incorporated in the Agreement: ♦ the Commonwealth to provide all GST revenue to the States; ♦ the wholesale sales tax to cease to apply from 1/7/2000 and neither it nor any similar tax to be reintroduced in the future; ♦ the temporary safety net arrangements for the taxation of petrol, liquor and tobacco to cease on 1/7/2000; ♦ The payment of Financial Assistance Grants to cease on 1/7/2000; ♦ Specific Purpose Payments to the States to continue, with the Commonwealth having no intention of cutting aggregate SPPs. The Agreement does not state whether this intention applies to SPPs expressed in nominal or real terms although it does refer to the objective of State governments being financially better off under the new arrangements; ♦ States to cease to apply the following taxes: — Bed taxes, from 1/7/2000; — Financial Institutions Duty (FID), from 1/7/2001; — Stamp duties on quoted marketable securities, from 1/7/2001; and — Debits tax, by 1/7/2005, subject to review by the Ministerial Council (see below for details of the Council). ♦ The Ministerial Council will, by 2005, review the need for retention of stamp duties on: — non-residential conveyances; — leases; — mortgages; —...
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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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