Anthony Albanese faces a tax tug-of-war between Labor’s two most popular state premiers if he wins the May election, asdeclared he will push for change to the GST carve-up regardless of wins in May.
For the first time since the introduction of the GST in 2000, the historically large donor state of NSW was assessed as requiring more GST revenue than it theoretically generates per person, or about $345 million in total.The commission said Victoria’s population declined in 2020-21, primarily due to lower overseas arrivals and, to a lesser extent, lower interstate migration because of the pandemic.
Dr Chalmers said the 23.9 per cent tax-to-GDP ratio was a political construct rather than sound economics, but Mr Morrison argued Labor wanted a licence to “let it rip” on tax by removing an “incredibly important safeguard” that was effectively a speed limit on taxes. Otherwise, there was no good reason for removing it.
He ruled out pushing for changes to the rate and base of the GST, but said Australia was at a critical juncture for reform, likening the pandemic “global shock” to the end of World War II. Mr Malinauskas said his role as Premier would be to improve the prospects of future generations and restore “trustworthiness to democratic government”.Early childcare education, universities and creating a more complex, skills-based economy were among his priorities, all of which were integral to economic growth that would stand future generations in good stead.