GST DISTRIBUTION —
IRON ORE PRICE
80. Hon Dr STEVE THOMAS to the minister representing the
Treasurer:
The Minister for Environment is
waiting for this one. I refer to the answer to question without notice 13 asked
on 12 February in which the minister suggested that potential for the iron ore
price to remain at $US90 a tonne for any period of time was ''highly
unrealistic'' and would have no impact on GST revenues.
(1) Under the
changes to the federal GST laws passed in federal Parliament in 2018, what is
the first year in which a floor is legislated for?
(2) Under those
same laws, are the funds allocated for top-up payments to the states from the
commonwealth legislated at certain dollar amounts for each year; and, if so,
would any change to those amounts require additional legislative change?
(3) Why has the 2018–19 Government Mid-year
Financial Projections Statement referenced in the answer last year had GST
variations removed from its calculation of revenue parameter sensitivity
estimates on page 30?
(4) Given that
the same document predicts iron ore prices this financial year of $US66 a tonne,
and $US62, $US61 and $US62 for the next three years, which already contrasts
with Treasury Corporation's prediction last week of $US70 a tonne this
financial year, can he guarantee that there will be no reduction in Western Australia's
GST payments as recommended by the Commonwealth Grants Commission before the
floor kicks in in 2022–23?
Hon
STEPHEN DAWSON replied:
I thank the honourable member for
some notice of the question. The following information has been provided to me
by the Treasurer.
(1) It will be 2022–23. In addition, as anyone
who has followed this matter would know by now, an effective GST floor applies
from 2019–20 through the commonwealth's commitment to provide
untied top-up funding.
(2) There are two types of top-up payments. In relation
to the floor, the legislation does not specify dollar amounts. However, the
legislation does specify dollar amounts for the commonwealth's boost to
the GST pool.
(3)–(4) Changes in top-up
payments offset any changes in our GST relativity.