CORONAVIRUS —
GOVERNMENT REVENUE
573. Hon PETER COLLIER to
the minister representing the Treasurer:
On behalf of Hon Dr Steve Thomas,
who is away on urgent parliamentary business, I refer to the government's
economic and fiscal update and the Treasurer's statement to Parliament,
both of 28 May 2020, and the answer to Hon Dr Steve Thomas's question
yesterday, all of which stated that the total government revenue over 2019–20
to 2020–21 is expected to be in the order of $1.8 billion lower than
predicted in the 2019–20 midyear review.
(1) Does that statement mean that the general
government revenue was predicted to be $1.8 billion lower than predicted
in the 2019–20 midyear review in total over the two financial years
2019–20 and 2020–21?
(2) If no to (1),
to precisely what period of time does the $1.8 billion lower prediction apply?
(3) Can the
Treasurer please provide the modelling that was used to make that prediction?
(4) At what point
in time does the modelling suggest that the revenue will return to the
projections given in the 2019–20 midyear review?
(5) What iron ore
prices were used in the modelling to make these predictions?
Hon STEPHEN DAWSON
replied:
I thank Hon Dr Steve Thomas for some
notice of the question.
(1) Yes, but it
excludes the impact on revenue of government policy responses to the pandemic,
such as the payroll tax waiver and impact on
general government sector revenue of the freeze on household fees and charges.
The government has now delivered $2.3 billion in support and stimulus measures
to the Western Australian community and businesses in responding to COVID-19.
(2) Not
applicable.
(3) The
Department of Treasury's detailed modelling remains part of the
deliberative process for the framing of the 2020–21 budget and, as
such, remains cabinet-in-confidence.
(4) As noted in
response to (3), Treasury's revenue modelling forms part of the 2020–21
budget process and remains cabinet-in-confidence.
(5) Based on
market conditions up to early May, the modelling assumed an iron ore price of
$US90.10 per tonne in 2019–20 and $US66.20 a tonne in 2020–21.
Retention of the 2019–20 midyear review price assumption for 2020–21
reflected the uncertainty relating to the impact of the COVID-19 pandemic at
the time and the expected volatility in commodity prices.