GST should be reformed amid “whack” to NT finances: Gunner
As the Federal Government prepares to unveil a historic budget, Chief Minister Michael Gunner has floated the idea of reforming the GST.
Northern Territory
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CHIEF Minister Michael Gunner has floated reforming the goods and services tax through National Cabinet as the Federal Government prepares to unveil a historic post-coronavirus budget.
The largest budget deficit in history will be unveiled on Tuesday as Prime Minister Scott Morrison and Treasurer Josh Frydenburg announce their plan for guiding the nation out of the deepest economic crisis since the Great Depression.
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Amid devastating lockdowns across the country and a prolonged shutdown in Victoria, Chief Minister Michael Gunner called for a “more stable pool” of income for the NT amid an anticipated “whack” to the territory’s slice of the GST.
“I think we’ve all seen that coming and we’ll obviously see the numbers out of the budget tomorrow,” Mr Gunner said.
“One of the concerns at the moment is all our eggs in one basket,” he said.
Amid concerns that the NT Government could be short changed hundreds of millions of dollars from a drop in revenue from the 10 per cent GST rate, Mr Gunner suggested reforming the system.
The NT News reported in June that the territory would be stung by a $649 million GST black hole between 2019-20 and 2020-21.
“What if the Australian Government got a share of the GST but we got a share of the other taxes, and that would create a more stable pool,” Mr Gunner said.
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“It’s not about increasing the size of the tax take, it’s about reducing the volatility of the amount of money in the GST pool,” he said.
Mr Gunner said it was a conversation that could be had through National Cabinet.
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