commission on fiscal imbalance 合集

The net effect of these changes was to reduce the gst

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Unformatted text preview: Taxes on international trade 3,799 1.9 34,101 17.4 538 0.3 152,575 77.7 STATE Employers payroll taxes 8,942 4.6 Taxes on immovable property 2,427 1.2 Total taxes on provision of goods and services Other Total Commonwealth Taxes on financial and capital transactions Financial institutions taxes Govt. guarantee levies Stamp duties on conveyances Other stamp duties Total taxes on fin. and cap. transactions Taxes on provision of goods and services Excises and levies Gambling Insurance Total taxes on provision of goods and services Taxes on goods use and performance of activities Motor vehicle taxes Franchise taxes Other Total taxes on goods use and perf. of activities 2,237 138 5,540 1,742 1.1 0.1 2.8 0.9 9,657 4.3 6,576 .. 2.3 1.1 3.3 17 4,421 2,138 10,218 2.0 3.0 0.2 5.2 Total State 37,820 19.3 Total Local 6,002 3.1 196,397 100.0 Total Australia 3,900 5,922 396 Source: Australian Bureau of Statistics, Taxation Revenue Australia 1999-00, catalogue no. 5506.0 Throughout this paper the term “States” will, for the purposes of clarity of exposition, be used to signify the six States and two Territories. All values are expressed in Australian dollars. At end July 2001 the Australian dollar was worth approximately $CAN 0.77, Euro 0.57, £Stg 0.35 and $US 0.51 . 115 Commission on Fiscal Imbalance 2. THE INTERGOVERNMENTAL AGREEMENT REFORM PACKAGE On 9 April 1999, the Prime Minister, State Premiers and Territorial Chief Ministers signed the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA), which dealt with the financial implications for the States and Territories of the GST-based reforms in the tax reform package A New Tax System (ANTS) (see Costello, 1998). This Agreement was revised as a result of negotiations in May 1999 between the Federal Government and the Australian Democrats, a minor party holding the balance of power in the Senate. These changes had the effect of: ♦ ♦ ♦ ♦ ♦ Narrowing the GST base; Reducing personal income tax cuts for upper income earners; Reducing the scope of the diesel fuel tax concession; Increasing social welfare compensation; and Increasing environmental expenditures. The net effect of these changes was to reduce the GST revenue available for distribution to the States. The revised Agreement, which is described in considerable detail in Appendix A, was signed on 20 June 1999. The broad bones of the revised Agreement are as follows: ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ Implementation of a broad-based GST at a rate of 10%; No variation of the GST rate or base without the unanimous agreement of the States, the Commonwealth Government and both Houses of the Commonwealth Parliament; Abolition of Financial Assistance Grants (FAGs) and Revenue Replacement Payments (RRPs) to the States; Use of the GST revenue to fund the abolition of the Federal wholesale sales tax (WST) and the abolition or reduction of various State taxes; Distribution of the GST revenue to the States according to horizontal fiscal equalizati...
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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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