Daily Telegraph editorial: GST shake-up penalises NSW
THE view on the spoils of GST has largely remained in place at a federal level under successive Labor and Coalition governments. But what about when one state generates buckets of money, only for it to be divided among other states under our system?
Opinion
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THE view on the spoils of GST has largely remained in place at a federal level under successive Labor and Coalition governments.
But what about when one state happens to be generating particularly enormous buckets of money, only for it to be divided among other states under our GST system?
That is the state of things as outlined by NSW Treasurer Dominic Perrottet, who claims the Morrison government’s new GST arrangement could leave NSW taxpayers up to $5.5 billion worse off.
“The Commonwealth has modelled one scenario which shows no state is worse off but in reality it is possible, more likely probable, that as a result of this change the taxpayers of NSW will be worse off to the tune of billions of dollars if this guarantee (that each state won’t be worse off) is not put into law,” the state Treasurer said.
“If the Commonwealth were fair dinkum about no state being worse off, they would have no problem enshrining that in law and protecting the states, like NSW, who have been doing the heavy lifting for decades.”
Perrottet’s point about NSW and our heavy lifting is well made. Since the Coalition came to power following Labor’s 2011 collapse, the government has worked with impressive zeal to improve NSW’s bottom line.
In large part this has come about by liberating business and investment conditions throughout the state. NSW has allowed and encouraged capital to grow. The flow-on effects of the government’s pro-business attitude are shown in NSW’s abundant GST revenue, among other measures.
“The taxpayers of NSW have always done the heavy lifting in supporting smaller states and we have always accepted this role and responsibility,” Perrottet said.
“I don’t believe it’s our role and responsibility to support inefficient states, like Queensland, who do not take on the reforms that we have done in NSW and also states like WA who don’t plan for the future.”
Again, these are points well made. There is little incentive for the likes of Queensland and Western Australia to lift their games if they can rely on NSW to continually bail them out.
It’s our money. We earned it. And we should be allowed to invest it in NSW.
OP SHOP FASHIONS WAY TO GO
OP shops are a great resource, as generations of the impecunious have long been aware. Today’s battlers, however, may find they are competing for clothing with roving fashionistas drawn to op shops for bargain collectibles and other garments.
It’s all good, because Sydney stylist Alex van Os’s enthusiasm for second-hand gear is driving more cash through the charities that typically run op shops and the like.
As well, van Os points out: “There’s still a stigma with wearing preloved clothes which I want to try to break.”
More strength to her.
RED TAPE HAMMERED
TRADIES have become vitally important components of the national economy in recent decades, but with their rise has also come an increased bureaucratic burden.
Many tradies work as two-person teams with their spouses, such is the paperwork load they bear.
It is often simply too much for a lone operator to cope with. And then there are the related financial losses.
The Berejiklian government is now taking steps to slash the cost of red tape by reducing licencing fees across 13 home building trades from up to $605 every three years to just $51 every five years.
“Battlers and tradies are people who are trying to get ahead and too often they’ve been ignored and forgotten,” Better Regulation Minister Matt Kean said yesterday.
“These are our people, our base, they work hard and they deserve to be rewarded.”
As rewards go, a substantially reduced licence-fee system is a very good start.
But as every tradie knows, a job isn’t done until it’s done. Keep cutting.