Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here’s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Whinges expected and unexpected: gambling and Western Australia's share of the GST

By Ian Cook - posted Thursday, 17 August 2017


OK, so you're expecting another "Whinge from the West" and you're not going to be disappointed.

But it isn't a whinge about Western Australia's share of the GST. The WA government is doing a good enough job on that front.

Nor is it a whinge about the fact that the body whose advice the federal government follows when it comes to the GST carve up, the Commonwealth Grants Commission (CGC), uses a rolling three year average when for calculating income from mining royalties. Even though this has the effect of imputing mining royalty income that WA hasn't been getting for a couple of years now.

Advertisement

And it is definitely not a whinge about "horizontal fiscal imbalance". I've no problem with the principle that "State governments should receive funding from the pool of GST revenue such that…each would have the fiscal capacity to provide services and the associated infrastructure at the same standard…"

I don't even have a problem with the CGC assuming that all infrastructure associated with the mining industry is provided by the mining companies, and not by state governments.

Nope, it's "None of the above".

My problem with the GST carve up is that Western Australia is being punished because it hasn't embraced gambling in the way that it has been embraced in other states.

I understand the basic principle. The CGC can't reward states for not introducing taxes and charges that might be considered the standard fare of state governments. You can't have states foregoing stamp duty, payroll tax or land tax in order to get both an advantage for local businesses and a greater share of GST revenues. (The Northern Territory gets special mention from the CGC in this regard for not having a land tax. See CGC link above)

It seems fair enough, then, that the CGC makes its calculations as "if each [state] made the same effort to raise revenue from its own sources and operated at the same level of efficiency."

Advertisement

That is, the principle makes sense in general. But I'm not convinced that the CGC should base its calculation of GST shares on the assumption that each state is raising the same amount of gambling revenue per person as every other state.

When did gambling revenue become standard fare for state governments?

Gambling revenue isn't the same as every other revenue. Different arguments and principles apply with respect to gambling and governments supporting, some might suggest sponsoring, gambling.

  1. Pages:
  2. Page 1
  3. 2
  4. All



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Ian Cook is a senior lecturer in politics at Murdoch University.

Other articles by this Author

All articles by Ian Cook

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Ian Cook
Article Tools
Comment Comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy