Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

I thank the honourable member for Makin for her question. I can inform her that in 2000 as part of A New Tax System the government introduced the largest tax reform in Australia’s history, abolishing wholesale sales tax, bed tax, financial institutions duty, bank account debits tax, stamp duty on marketable securities and other taxes in return for the introduction of a uniform rate 10 per cent GST. Every single dollar of that GST goes to state governments. Every single dollar, by legislation, goes to state governments. Since 2000, $150 billion has gone to the state governments of Australia and of this South Australia has received $17.3 billion, including a $402 million windfall over and above what it would have received had it kept the old taxes and had they been adjusted in accordance with the growth. That is the basis of the South Australian economy at the moment, and that is what is underpinning government services in South Australia. So I was concerned to see the member for Makin send me a leaflet, which is now being circulated in South Australia on behalf of the South Australian Labor government, which claims:

The federal Liberals are collecting tax revenues and the Rann government keeps delivering quality services.

What does it say the tax revenue is that the federal government is collecting? GST. Let me make it clear that every last dollar of GST is being received by state governments and in South Australia in 2005-06 that is $3,394 million. It is projected to be $3,573 million the next year and $3,723 million the year after. This leaflet, which carries disgusting lies, is authorised by one D. Feeney, who I believe is a Victorian Senate candidate.

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