Malarndirri McCarthy (NT, Australian Labor Party) Share this | Hansard source

I'm certainly not going to mince words in the very short time I have for now on how very important this issue of the GST is to the Northern Territory. The Northern Territory is facing unprecedented falls in GST revenue, which is impacting on the government's ability to deliver core services. This impact is widening the gap on Indigenous disadvantage and infrastructure deficits.

NT GST revenue has fallen by $500 million per year. This $500 million shortfall is entrenched by the watering down of horizontal fiscal equalisation principles in this bill, remembering that the GST makes up 50 per cent of the Northern Territory's total revenue and the NT government's $6.5 billion budget. The NT has a relatively limited own-source revenue base, which is 30 per cent of total revenue, despite the new $37 billion INPEX LNG project coming online. I certainly want to remind senators that this project is also subject to the Commonwealth's 40 per cent petroleum resource rent tax and 30 per cent company tax.

The NT's current sharp economic downturn is exacerbating the situation, with the debt-to-revenue ratio rising. Since 2016, the NT's GST revenue forecasts have seen a cumulative decline of $3.4 billion over the forward estimates. As a small, self-governing member of the Federation, with a limited own-source revenue base compared to the larger jurisdictions, it is disproportionately more difficult for the Northern Territory to absorb significant changes to its GST revenue. While all economies are subject to cyclical effects, as a small, open economy, the economic cycles in the Territory are more pronounced than in other jurisdictions. The NT's making some very tough decisions in its fiscal response to the economic downturn, and this includes over $800 million in savings and efficiencies and new own-sourcing revenue measures.

The Northern Territory, regardless of the government in power, has always been a strong supporter of the principles of horizontal fiscal equalisation, so it's enormously disappointing to see the failure of the Northern Territory senator Nigel Scullion and his Country Liberal Party to stand up for the Territory around these changes to GST that will impact adversely on the Northern Territory. Senator Scullion failed to say a single word when the then Treasurer, Scott Morrison, announced last year that the government was slashing GST distribution to the Territory by an estimated $2 billion over the next four years, and he's certainly done nothing to get his colleagues to listen to the Northern Territory government's very reasonable argument about funding essential services, such as housing, education and roads. He's refusing to say, as Minister for Indigenous Affairs, what impact this new funding arrangement will have on efforts in the Territory to close the gap on Indigenous disadvantage. Every February we certainly talk about the need to look at the report card of Indigenous disadvantage and closing the gap, which the parliament admits that we're not doing. How then, when we know we desperately need extra resources and support in the Northern Territory, are we going to close that gap?

There's certainly been a parade of Liberal government figures through the Territory in recent months, all talking up their candidates in Lingiari and Solomon, but not once have any of them said what they'll be doing about this unprecedented financial situation facing the Northern Territory. They have not said one word about how they will be advocating for us, ensuring that we get our fair share. Not once have any of these candidates ever said what their plans are for dealing with this reduction in GST revenue which will impact the people of the Northern Territory the hardest. You cannot pretend to be standing up for the Territory, for the most disadvantaged communities in this country, and saying you're their voice, yet refuse to front the people who have made the decision to change the basis for GST redistribution.