Unformatted text preview: debentures, bonds and other loan securities;
— cheques, bills of exchange and promissory notes; and
— unquoted marketable securities. ♦ States to adjust their gambling tax arrangements to take account of the impact of the GST on gambling operators; ♦ States to ensure that ANTS increases in pensions and allowances do not flow through to increased public housing rents; ♦ All parties to the Agreement to retain the right to introduce anti-avoidance (and presumably anti-evasion) measures to
protect remaining bases or liabilities accrued prior to the date at which the tax ceases to apply. Distribution of GST revenue
GST revenue will be distributed according to the following principles:
♦ The Commonwealth to make revenue grants to the States equivalent to the total revenue from the GST, subject to the
arrangements in the Agreement; ♦ GST revenue grants to be freely available to the States to be used for any purpose; 140 Commission on Fiscal Imbalance ♦ GST revenue grants to be distributed among the States in accordance with horizontal fiscal equalisation principles, subject
to transitional arrangements. Details of the payment arrangements are set out in Appendix B of the Agreement. Transitional arrangements
The Commonwealth guarantees that, in each of the transitional years following introduction of the GST, the budgetary
position of each State and Territory will be no worse off than it would have been had the Agreement not been
The transitional period will extend from 1/7/2000 to 30/6/2003 but may be extended if transitional assistance is needed
by any State or Territory after June 2003. In practice this period has already been extended to the end of 2006-07.
To meet the transitional guarantee the Commonwealth will make transitional assistance payments to all States, as
necessary, over the period. The assistance will take the form of interest-free loans and grants in 2000-01 and of grants
in subsequent years. These payments, or repayments, will be excluded from Commonwealth Grants Commission per
capita relativities assessment and will be freely available for use for any purpose.
After the second year after GST introduction, the GST revenue grants will be made on an HFE basis and any State or
Territory receiving more than would have been received under the previous arrangements will retain the excess.
Full details of the transitional arrangements are presented in Appendix B. Application of the GST to Government
All levels of Government and their statutory corporations and authorities are to operate as if they were subject to GST
legislation. All GST payments from these sources will be included in GST revenue. Government taxes and charges
The GST will not apply to the payment of some taxes and compulsory charges, the list of which is to be agreed between
the State Governments and the Commonwealth Government. Management of the GST rate and base
Any proposal to vary the 10% GST rate or the GST base will require:
♦ the unanimous support of State Governments; ♦ endorsement by the Commonwealth Government of the day; and ♦ passage of relevant legislation by both Houses of Commonwealth Parliament. All future changes to the base should be consistent with:
♦ maintenance of the integrity of the tax base; ♦ simplicity of administration; and ♦ minimisation of taxpayer complianc...
View Full Document