July 5 2018 McGowan must use GST windfall to pay down debt The McGowan Government should allocate any additional revenue from the Federal Government’s planned changes to the GST distribution to pay down debt, the State Opposition said today. Opposition Leader Mike Nahan said the McGowan Government committed in its first budget to allocate any revenue windfalls to a Debt Repayment Account, into which revenue windfalls would be paid and used to repay Consolidated Account borrowings. “The very welcome changes announced by the Turnbull Government are a windfall for Western Australia,” Dr Nahan said. “The McGowan Government made it clear it would allocate any windfalls to reducing debt and the additional revenue Western Australia will receive over future years, as a result of these reforms, is a windfall and should therefore be allocated to the Debt Repayment Account. “The reforms announced by the Turnbull Government are in response to the unprecedented collapse in WA’s GST revenue since 2010. “In particular, from 2014/15 we had the twin impacts of a GST return of less than 30 cents in the dollar, at the same time as iron ore prices collapsed – substantially reducing royalty income – which created a need to borrow money in order to maintain front line services and infrastructure at a time of extraordinary growth in population. Dr Nahan said it was only appropriate that any windfall gained from GST reform should be used to pay down the debt incurred in the past. “The McGowan Government is now receiving a GST share considerably higher than that received by the State in previous years, so it is receiving the additional revenue required to fund essential services. “The further additional revenue the state will receive from today’s reforms, above the forecast estimates, is a windfall. As such, it should be put towards the Debt Repayment Account. “If the McGowan Government spends the windfall on anything other than reducing debt, it will shred yet another of Mark McGowan’s election commitments.” Media Contact |
