federal financial relations 2001-02 - budget · 2001-02 budget paper no. 3 federal financial...

2001-02 BUDGET PAPER No. 3

FEDERALFINANCIAL RELATIONS

2001-02

CIRCULATED BYTHE HONOURABLE PETER COSTELLO, M.P.,

TREASURER OF THE COMMONWEALTH OF AUSTRALIA, ANDTHE HONOURABLE JOHN FAHEY, M.P.,

MINISTER FOR FINANCE AND ADMINISTRATIONFOR THE INFORMATION OF HONOURABLE MEMBERS

ON THE OCCASION OF THE BUDGET 2001-02

22 MAY 2001

Commonwealth of Australia 2001

ISBN 064226193-8

This work is copyright. Apart from any use as permitted under the Copyright Act 1968,no part may be reproduced by any process without prior written permission from theCommonwealth available from Info Products. Requests and inquiries concerningreproduction and rights should be addressed to the Manager, Legislative Services,Info Products, Department of Finance and Administration, GPO Box 1920,Canberra ACT 2601.

Printed by CanPrint Communications Pty Ltd

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This Budget Paper presents information on the Commonwealth Government’sfinancial relations with State, Territory and local governments.

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Budget Paper No. 3 is one of a series of Budget Papers, the purpose of which is toprovide information supplementary to that in the Budget Speech. A full list of theseries is printed on the inside cover of this Paper.

Chapter 4 of this Paper examines budget trends in the States and Territories. This isintended to provide an overview of fiscal developments in the States and Territoriesand supplement information provided in Statement 8 of Budget Paper No. 1.

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The following style conventions are employed in this Paper.

• The Australian Capital Territory and the Northern Territory are referred to as ‘theTerritories’. References to the ‘States’ or ‘each State’ include the Territories.

• The State and local government sector is denoted as the ‘State/local sector’.References to the ‘State/local sector’ include the Territories unless otherwise stated.

• Figures in tables, and generally in the text, have been rounded. Discrepancies intables between totals and sums of components reflect rounding. Percentage changesin tables are based on the underlying unrounded amounts.

• The following notations are used in the tables.

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On 1 July 2000, a new system of Commonwealth-State financial relations commencedas part of The New Tax System.

This Chapter provides an overview of this new system, outlines the total paymentsfrom the Commonwealth to the States in 2000-01 and 2001-02, and discusses keydevelopments since the 2000-01 Budget.

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A key element of The New Tax System is to provide all goods and services tax (GST)revenue to the States. This is a landmark reform of Commonwealth-State financialrelations. The reforms provide the States with a secure, broad-based revenue sourcewith which to fund community services, such as schools, hospitals and the police.

The new system of Commonwealth-State financial relations:

• provides all GST revenue to the States, to be spent according to their ownbudgetary priorities;

− this provides the States with a robust and growing tax base, ensuring that theywill be better off in the medium and long term;

• provides for the abolition of a range of narrow and inefficient State taxes, such asFinancial Institutions Duty and stamp duty on quoted marketable securities, whichare to be abolished from 1 July 2001;

• introduced a new First Home Owners Scheme; and

• established a Ministerial Council for Commonwealth-State Financial Relations (theMinisterial Council).

In addition, the Commonwealth has made a commitment to provide assistance to theStates in the transitional years to ensure that each individual State will be no worse offthan it would have been had the reforms not been implemented.

The reforms to Commonwealth-State financial arrangements required the passage oflegislation by both the Commonwealth Parliament and by the States. The A New TaxSystem (Commonwealth-State Financial Arrangements) Act 1999 and the A New TaxSystem (Commonwealth-State Financial Arrangements — Consequential Provisions) Act 1999give effect to the Commonwealth’s commitments.

The legislation builds on (and incorporates as a Schedule) the IntergovernmentalAgreement on the Reform of Commonwealth-State Financial Relations (the

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Intergovernmental Agreement), endorsed by Commonwealth, State and TerritoryHeads of Government in June 1999.

The States have also enacted legislation to meet their commitments.

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It is estimated that the States will receive around $27.5 billion in GST revenue in2001-02, which can be spent by the States according to their own priorities.

Chart 1 illustrates the estimated GST revenue provision to each State in 2001-02.

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In addition to providing all GST revenue to the States, the Commonwealth will alsomake payments totalling $23.8 billion to the State/local sector in 2001-02, comprising:

• general revenue assistance:

− Budget Balancing Assistance;

− National Competition Policy Payments; and

− Special Revenue Assistance; and

• Specific Purpose Payments (SPPs):

− Specific Purpose Payments ‘to’ the States;

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− Specific Purpose Payments ‘through’ the States; and

− Specific Purpose Payments direct to local government.

Specific Purpose Payments account for the majority of Commonwealth payments tothe State/local sector in 2001-02, as illustrated in Chart 2.

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Tables 1 and 2 summarise the estimated GST revenue provision and Commonwealthpayments to each State in 2000-01 and 2001-02 respectively.

The provision of GST revenue to the States and Commonwealth payments to theState/local sector are discussed in greater detail in Chapters 2 and 3.

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The introduction of The New Tax System on 1 July 2000 has significantly reformedCommonwealth-State financial relations. Key developments since the 2000-01 Budgetare highlighted below.

• As the States receive all GST revenue, the Commonwealth commenced monthlypayments of GST revenue to the States in July 2000. Total GST payments to theStates are estimated at $24.2 billion for 2000-01.

− As a consequence, the States commenced payments to the Commonwealthmeeting the agreed costs incurred in administering the GST (the payments in2000-01 reflect costs incurred in 1999-2000 and 2000-01). The payments reflect asubstantial increase in the Australian Taxation Office’s workload as a result of ahigher than anticipated number of GST registrations. The payments are expectedto decrease in 2001-02 and subsequent years.

• A new First Home Owners Scheme commenced on 1 July 2000. Under the Scheme,a grant of $7,000 is available to eligible applicants who are buying or building theirfirst home. The Scheme is administered by the States on the basis of principlesagreed by all jurisdictions in the Intergovernmental Agreement.

− In addition to this ongoing Scheme, the Commonwealth announced a newinitiative on 9 March 2001 to double the grant to $14,000 for first home ownerswho enter into contracts between 9 March 2001 and 31 December 2001 inclusiveto build or purchase new but previously unoccupied homes. The $14,000 grant isalso available for owner-builders who commence building their home betweenthese dates. The Commonwealth is fully funding the extension to the Scheme.

• On 1 July 2000, accommodation taxes were abolished, and Financial InstitutionsDuty and stamp duty on quoted marketable securities will be abolished from1 July 2001.

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The Ministerial Council, comprising the Commonwealth Treasurer and all State andTerritory Treasurers, was established to oversight the implementation and operation ofthe Intergovernmental Agreement. The Ministerial Council met on 30 March 2001 toconsider expected payments to the States, as well as issues related to tax reform andthe administration of the GST.

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This Chapter provides details of the provision of goods and services tax (GST) revenueto the States, and general revenue assistance payments to be made to the States in2000-01 and 2001-02. It also discusses the composition of payments and the impact ofhorizontal fiscal equalisation.

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The A New Tax System (Commonwealth-State Financial Arrangements) Act 1999 (the Act)provides that the States receive all GST revenue. Monthly payments of GST revenue tothe States commenced in July 2000.

The distribution of GST revenue among the States is based on horizontal fiscalequalisation principles (discussed in detail later in this Chapter).

Tables 3 and 4 show the estimated provision of GST revenue to the States in 2000-01and 2001-02 respectively. This revenue will be distributed, in accordance with the Act,using GST relativities recommended in the Commonwealth Grants Commission (CGC)Report on State Revenue Sharing Relativities 2001 Update, after accounting for a technicalissue raised by Western Australia at the 30 March 2001 Ministerial Council meeting.

x Tables 3 and 4 show the per capita relativities applied to the States’ populations (asat 31 December of each year) in order to arrive at a weighted population share foreach State. A State’s share of the GST revenue is equal to its weighted populationshare of the combined GST revenue and unquarantined Health CareGrants (HCGs), less the unquarantined HCGs it receives.

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In 2001-02, general revenue assistance will take the form of Budget BalancingAssistance (BBA), National Competition Policy Payments (NCPPs) and SpecialRevenue Assistance (SRA). As with GST revenue, general revenue assistance is‘untied’, that is, it is not required to be spent by the States in a specified area.

As outlined in Tables 1 and 2, the total level of general revenue assistance to the Statesin 2000-01 is estimated to be $3,432.2 million. In 2001-02 it is estimated to be$3,174.1 million.

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Under the Act, the Commonwealth has guaranteed that in each of the transitionalyears following the introduction of tax reform, each State’s budgetary position will beno worse off than had the reforms to Commonwealth-State financial relations not beenimplemented.

The amount of funding each State would have had available to it under the previoussystem of financial relations is known as the Guaranteed Minimum Amount (GMA)and is calculated for each transitional year, commencing in 2000-01.

To meet its guarantee, the Commonwealth pays the States transitionalassistance (known as BBA) to cover any shortfall of GST revenue below the GMA.

Tables 5 and 6 show the latest estimates of the GMA, GST revenue and BBA for eachState in 2000-01 and 2001-02 respectively. These estimates have been updated forpolicy, parameter and estimate changes since they were discussed at the 30 March 2001Ministerial Council meeting.

On the basis of current estimates, the States will receive total BBA of $2,957.5 million in2000-01 and $2,443.6 million in 2001-02. In both years, BBA will be paid as a grant. Thefinal quantum of BBA paid in a year is determined by the Treasurer’s GMAdetermination and the Commissioner of Taxation’s GST revenue determination, asoutlined in the Act.

In 2001-02, BBA will take into account the revenue forgone by the States from theabolition of Financial Institutions Duty and stamp duty on quoted marketablesecurities, of $1,195.9 million and $675.1 million respectively.

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At the April 1995 Council of Australian Governments meeting, the Commonwealthand the States concluded the Agreement to Implement the National Competition Policy andRelated Reforms. Under that Agreement, the States are eligible for three tranches ofongoing NCPPs. The NCPPs commenced in July 1997 at an annual level of$200 million, and increased in July 1999 to $400 million in 1994-95 prices. The thirdtranche commences in July 2001 at an annual level of $600 million in 1994-95 prices.The Agreement specifies that the NCPPs be paid quarterly and be distributed to theStates on an equal per capita basis.

Each State’s NCPPs are subject to that State making satisfactory progress with theimplementation of specified reform conditions in the Agreement. Prior to thescheduled payment of NCPPs in 2001-02, the National Competition Council will assesswhether each State has met these conditions and provide a report for consideration bythe Commonwealth.

Subject to satisfactory progress in the areas to be reviewed by the NationalCompetition Council, the Commonwealth will provide the States with NCPPsestimated to total $716.3 million in 2001-02.

Table 7 shows the allocation of NCPPs covering 2000-01 to 2004-05.

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In 2001-02, SRA comprises funding to the Australian Capital Territory for special fiscalneeds. The level of these payments will reflect the recommendations of the CGC in itsReport on State Revenue Sharing Relativities 2001 Update.

Special Revenue Assistance is provided to the Australian Capital Territory inrecognition of the fact that certain functions (for example, the Family Court) are notdirectly funded by the Commonwealth, in contrast to the funding arrangements inother States. In 2001-02, SRA will amount to $14.2 million, an increase of $0.7 million.The increase reflects an expected increase in the consumer price index (CPI) adjustedto remove the impact of indirect tax reform, and increases in superannuation and debtcharges related to the provision of police services in the Australian Capital Territory.

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Special Revenue Assistance to the Australian Capital Territory also includes anamount for additional police service costs, which used to be paid as a separatetransitional allowance. This amount is included as the Australian Capital Territory isnot able to influence the terms and conditions of the Australian Federal Police.

Table 8 provides estimates of SRA to the Australian Capital Territory from 2000-01to 2004-05.

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The Commonwealth collects revenue on behalf of the States under ‘safety net’arrangements for petroleum, alcohol and tobacco products, and mirror taxes atCommonwealth places.

In accordance with the Intergovernmental Agreement, taxation of petroleum, alcoholand tobacco under the ‘safety net’ arrangements ceased on 1 July 2000. However, dueto collections being received which relate to taxable dealings that occurred before1 July 2000, lagged payments continue to be made in 2000-01.

Table 9 shows estimated revenue replacement payments under ‘safety net’arrangements for 2000-01.

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Table 10 summarises estimates of ‘safety net’ surcharge collections and accrued mirrortaxes on behalf of the States, from 2000-01 to 2004-05.

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Following the High Court decision in Allders International Pty Ltd v Commissioner ofState Revenue (Victoria), invalidating State taxes on Commonwealth places, theCommonwealth introduced taxes in 1998 to mirror State payroll taxes, FinancialInstitutions Duty, debits tax and stamp duties on activities on or in Commonwealthplaces. State land taxes were subsequently added to the list of mirror taxes. All mirrortax revenues are remitted to the States to ensure that they are not financiallydisadvantaged by the Allders decision.

The administrative arrangements for collecting, and ensuring compliance with, themirror taxes are contained in bilateral arrangements between the CommonwealthTreasury and State Treasuries.

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All GST revenue is provided to the States and distributed on the basis of horizontalfiscal equalisation (HFE) principles, in accordance with the provisions of the Act.General revenue assistance provided to the States by the Commonwealth is also partlydistributed on the basis of HFE principles.

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The objective of HFE is to improve equity for all Australians. The principle of HFE isthat all State governments can provide services at the same standard if they make thesame effort to raise revenue from their own sources and operate at the same level ofefficiency.

The HFE principles are embodied in the per capita relativities recommended by theCGC. The CGC is an independent statutory authority established by the CommonwealthGrants Commission Act 1973.

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In its assessment of per capita relativities, the CGC takes account of differences in theper capita capacities of the States to raise revenues and differences in the per capitaamounts required to be spent by the States in providing an average standard ofgovernment services.

A State’s actual per capita expenditure or revenue generally differs from the average ofall States when:

x influences that are beyond a State’s control (referred to as ‘disabilities’) affect thecost at which it can provide services or its capacity for raising revenue; or

x a State’s policies, practices and operating efficiency differ from those of other States.

Horizontal fiscal equalisation requires that only those factors beyond a State’s controlbe taken into account in determining a State’s relative needs.

The Commonwealth consults with the States concerning the CGC’s terms of reference,with a view to reinforcing the CGC’s position as an independent arbiter in relation toHFE. Terms of reference for the CGC define the general approach to be followed, aswell as any specific conditions or limitations on the extent to which HFE is to apply.

The CGC undertakes both annual updates and five-yearly methodology reviews.Annual updates essentially revise the data upon which the CGC’s assessments arebased. Methodology reviews are aimed at improving the CGC’s methods ofassessment and involve substantial consultation with the States and theCommonwealth. The CGC completed its most recent methodology review inFebruary 1999, and the results of the next methodology review are due to be releasedin early 2004 (see Box 1).

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x The CGC has commenced a new methodology review which is expected to becompleted in February 2004.

x The terms of reference for the 2004 review were developed in consultation withthe States, and give the CGC a wide-ranging brief to review aspects of itsmethodology. Any subsequent methodology improvements may produce aredistribution of funding among the States.

x Issues under consideration by the CGC as part of the 2004 review include:

� whether the allowances for special circumstances granted to the AustralianCapital Territory continue to be necessary; and

� improving methods of assessment, for example in the area of depreciationand debt charges.

x The CGC expects to release preliminary relativities in mid-2003 ahead of afurther round of consultations with the States and the Commonwealth. TheCGC’s final recommendations, including the recommended per capitarelativities for 2004-05, are expected to be released in February 2004.

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In its Report on State Revenue Sharing Relativities 2001 Update, the CGC analysed Statefinancial data for the period 1995-96 to 1999-2000 to form the basis of itsrecommendations on two sets of relativities:

x GST relativities that apply to the distribution of GST revenue; and

x Financial Assistance Grants (FAGs) relativities that contribute to the calculation ofthe GMA for each State.

The Ministerial Council meeting on 30 March 2001 resolved to adopt therecommended relativities for 2001-02 after adjustment for minor technical issues.

The GST relativities and FAGs relativities for 2000-01 and 2001-02 are illustrated inTable 11.

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The GST relativities are all closer to 1 than the FAGs relativities. This reflects the factthat fiscal equalisation requires a fixed dollar amount of funding (around $2.1 billion)to be redistributed. Since the GST pool (approximately $27.5 billion in 2001-02) isgreater than the FAGs pool (approximately $18.7 billion in 2001-02) a smallerproportion of GST funding is redistributed among the jurisdictions.

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One way of viewing the effect of HFE is to compare the GMA for each State with theamount that would be received on the basis of an equal per capita distribution. WhileHFE only applies to the FAGs forgone component of GMA, FAGs forgone is the largestcomponent of the GMA. In 2001-02, around $2,148 million (or 7.2 per cent) of the totalGMA is to be distributed among the States as a result of the application of the CGC’srelativities to the pool of FAGs forgone, compared with an equal per capitadistribution. The comparison is shown in Table 12.

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Some jurisdictions receive relatively less funding under HFE because their fiscalcapacity is relatively strong — these ‘donor’ States are New South Wales, Victoria andWestern Australia. The other jurisdictions (the ‘recipient‘ States) receive relativelymore funding because their fiscal capacity is not as strong.

Another way of viewing the effect of HFE is to consider the distribution of fundingthat might occur were Australia to have a unitary system of government, rather thanthe current federal system. It is, of course, not possible to quantify this approach.Nevertheless, it would seem likely that under a unitary system of government, thegovernment would seek to provide a minimum level of services to all areas. This is asimilar outcome to that which HFE seeks to achieve in the current federal system.

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This Chapter provides a broad overview of the nature and purpose of Specific PurposePayments (SPPs). It also discusses general purpose assistance to local government in2000-01 and 2001-02.

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Specific Purpose Payments are payments for policy purposes that relate to particularfunctional activities (for example, health and education). Specific Purpose Paymentsare made under section 96 of the Constitution, which states that the CommonwealthParliament may grant financial assistance to any State on such terms as it sees fit.

Specific Purpose Payments can be classified into three groups:

• Specific Purpose Payments paid ‘to’ the States — payments direct to Stategovernments, totalling $15,154.8 million in 2001-02;

• Specific Purpose Payments ‘through’ the States — payments to State governmentsto be passed on to local government, other bodies and individuals,totalling $5,067.5 million in 2001-02. The main payments in this category relate tonon-government schools and local government general purpose assistance; and

• Specific Purpose Payments made direct to local government, totalling$429.8 million in 2001-02. The main payments in this category relate to child careprogrammes administered by local governments on behalf of the Commonwealthand funding for aged and disabled persons’ homes and hostels.

Indexation arrangements and the distribution of SPPs among the States vary for eachSPP. In most cases, SPPs are subject to conditions reflecting Commonwealth policyobjectives or national policy objectives agreed to between the Commonwealth and theStates. It is because of the conditions attached to SPPs that they are sometimes referredto as ‘tied grants’. Such conditions may include:

• general policy requirements on States (for example, public hospital treatment toMedicare patients as a condition of receiving Health Care Grants);

• a requirement that a payment be expended for a specific purpose (for example,housing assistance for homeless people);

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• meeting broad Commonwealth-State agreements covering principles andprogramme delivery mechanisms (for example, the Commonwealth-State HousingAgreement); and

• conditions of joint expenditure programmes, including project approval, matchingfunding arrangements and performance information.

Specific Purpose Payments also include some payments that are not subject toconditions. These typically relate to revenue sharing arrangements or compensation(either for the transfer of responsibilities or for other Commonwealth action). Forexample, compensation payments are made to the States for revenue forgone as aresult of the national system of companies and securities regulation.

Specific Purpose Payments ‘to’ and ‘through’ are estimated to totalaround $20,222.2 million in 2001-02. This is an increase of $981.4 million or 5.1 per centon 2000-01 (after removing the $112.7 million and $97.0 million cost of the NaturalDisaster Relief Programme in 2000-01 and 2001-02 respectively). Specific PurposePayments ‘to’ the States are expected to increase by around $601.3 million in 2001-02or 4.2 per cent on 2000-01 after abstracting from SPPs associated with natural disasterrelief.

Chart 3 shows the trend in the level of SPPs from 1981-82 to 2001-02. It containsadjustments for a number of classification changes and one-off factors, so as to allowcomparisons on a more consistent basis.

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Chart 4 illustrates the composition of major SPPs (‘to’ and ‘through’ the States) in2001-02.

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More detailed information on SPPs, including estimated State splits for 2000-01 and2001-02 and data on repayments of advances, advances and interest payments, iscontained in Appendix B.

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General purpose assistance to local government has been provided by theCommonwealth since 1974-75. Under current arrangements, the Commonwealthprovides general purpose assistance to local government in the form of localgovernment financial assistance grants and local government untied road funding.This assistance is paid to the States as an SPP on the condition that the funds arepassed on to local government. Both forms of funding can be spent by localgovernment on any purpose.

General purpose assistance is provided to local government authorities under theLocal Government (Financial Assistance) Act 1995 (the Act). Under the Act, the Treasureris responsible for determining the annual increase in Commonwealth general purposeassistance paid to local government. The Act previously provided for general purposeassistance to be increased each year by an escalation factor that reflected theunderlying movement in general revenue assistance provided to the States. Theescalation factor reflected the percentage increase in the States’ Financial Assistance

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Grants (FAGs) pool in the current year, which in turn reflected indexation forpopulation growth and the consumer price index (CPI). As a result of the cessation ofFAGs from 1 July 2000, the Act was amended with effect from that date to remove thelink to FAGs and to provide for the Treasurer to determine the escalation factor withreference to population growth and the CPI.

The Commonwealth will provide total payments of $1,322.5 million in localgovernment general purpose assistance in 2000-01. These payments have been basedon the estimated escalation factor of 1.0389 and take into account an underpaymentof $1.7 million in 1999-2000. In June 2001, the Treasurer will determine the final 2000-01escalation factor on the basis of the Australian Statistician’s determination ofpopulation, and ongoing CPI (which excludes the estimated impact of the indirect taxreform measures in The New Tax System). This is consistent with the decision in the2000-01 Budget that the ongoing CPI estimate will be used for indexation purposes formost Commonwealth expenses, including SPPs. The current estimate for the 2000-01escalation factor is 1.0463.

General purpose assistance to local government is estimated to be $1,383.5 million in2001-02 (after allowing for an estimated payment of $9.4 million to adjust for thedifference between the escalation factor used to calculate payments in 2000-01 and thefactor to be determined by 30 June 2001). In 2001-02, general purpose assistance to localgovernment will again utilise an escalation factor based on estimates of populationgrowth and CPI increases, excluding the estimated impact of the indirect tax reformmeasures in The New Tax System. The final escalation factor for 2001-02 will bedetermined by the Treasurer in June 2002.

As in the past, the interstate distribution of local government financial assistancegrants for 2001-02 will be on an equal per capita basis, using the State populations at31 December in the previous financial year. Untied local government road funding isdistributed between the States on the basis of historical shares. State GrantsCommissions determine the intrastate distribution of these payments to localgovernments. The financial assistance grants are distributed, as far as practicable, on ahorizontal fiscal equalisation basis, while the identified road grants are distributed onrelative road needs.

Table 13 sets out the payments of general purpose assistance to local government in2000-01 and 2001-02.

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This Chapter provides an overview of recent fiscal developments in State non-financialpublic sector finances. The Chapter also sets out the Loan Council Allocationsnominated by the Commonwealth and each State for 2001-02 and endorsed by theAustralian Loan Council at its meeting on 30 March 2001. It also reports theCommonwealth’s 2001-02 Budget Loan Council Allocation estimate.

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The State non-financial public sector — comprising the general government and publicnon-financial corporations (PNFC) sectors of all States — is expected, on a GovernmentFinance Statistics basis, to record a cash surplus of 0.1 per cent of Gross DomesticProduct (GDP) in 2000-01. This compares with a cash surplus of 0.9 per cent of GDP in1999-2000.

The deterioration in the position of the State non-financial public sector is attributableto a decline in both the general government and PNFC sectors. The cash surplus in thegeneral government sector is forecast to fall from 0.4 per cent of GDP in 1999-2000 to0.3 per cent in 2000-01. Similarly, the PNFC sector is forecast to fall from a surplus of0.6 per cent of GDP to a deficit of 0.2 per cent of GDP in 2000-01.

In the forward estimate years, the general government sector surplus is expected toaverage around 0.2 per cent of GDP. Trends in the cash surplus of the State generalgovernment, PNFC and non-financial public sectors are illustrated in Chart 5.

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The ratio of aggregate State net debt to GDP has been declining steadily since the early1990s. This has largely resulted from States adopting medium-term fiscal strategies toreduce debt levels through expenditure restraint and, less importantly, throughrevenue increases and asset sales.

Chart 6 illustrates recent trends in the net debt to Gross State Product (GSP) ratio ofeach State, along with the aggregate State net debt to GDP ratio.

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Key fiscal developments in each State are outlined below. Developments are reportedin both accrual and cash terms, where possible, and are based on Australian Bureau ofStatistics (ABS) publications, Commonwealth Treasury forecasts, State 1999-2000budget outcomes, 2000-01 State mid-year reports and 2001-02 State Budgets whereavailable. Forthcoming Budgets in most jurisdictions may lead to revisions to theoutlook.

Jurisdictions that have not yet implemented the accrual reporting requirements in theirbudget documents have until the 2002-03 budget year to implement reporting on anaccrual basis, and are expected to continue reporting on a cash basis in the interim.

New South Wales is expected to further improve its non-financial public sectorposition in 2000-01. In accrual terms, the general government sector fiscal balance isexpected to be in surplus by 0.2 per cent of GSP in 2000-01. Fiscal surpluses areprojected for the general government sector for the three years after 2000-01.

New South Wales expects to record a non-financial public sector fiscal surplus of0.2 per cent of GSP in 2000-01, up from 0.1 per cent in 1999-2000. The improvementlargely mirrors the PNFC sector, which is expected to move from a deficit of0.3 per cent of GSP in 1999-2000 to a balanced position in 2000-01.

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In cash terms, the general government sector is expected to record a surplus of0.5 per cent of GSP in 2000-01, down from 0.8 per cent in 1999-2000. Cash surpluses areexpected to continue through the forward period.

State non-financial public sector net debt as a percentage of GSP is expected to declinefrom 8.4 per cent in 1999-2000 to 7.9 per cent in 2000-01, with cash surpluses used toretire debt.

In accrual terms, the Victorian general government sector expects to record a fiscalsurplus of 0.4 per cent of GSP in 2000-01, down from a 0.8 per cent surplus in1999-2000. The general government fiscal balance is projected to move into deficit in2001-02 and beyond as spending on infrastructure increases. The PNFC sector in2000-01 is expected to record a small deficit, while the non-financial public sector isforecast to move into a deficit position in later years.

The cash surplus in the general government sector is expected to decrease from1.2 per cent of GSP in 1999-2000 to 0.7 per cent in 2000-01, with forecast deficits in theout years with an increase in capital spending.

Proceeds from Victoria’s privatisation programme previously contributed insubstantially reducing Victoria’s net debt position. Continuing to use its surpluses toretire debt, Victoria’s non-financial public sector net debt is expected to fall further in2000-01, moving from 2.8 per cent of GSP in 1999-2000 to 2.1 per cent.

Queensland’s general government sector is expected, in accrual terms, to record afiscal deficit of 0.7 per cent of GSP in 2000-01, up from 0.1 per cent in 1999-2000.Queensland is forecasting that a decrease in capital investment (after strong growth inrecent years) will contribute to the fiscal balance moving into surplus over the forwardperiod.

Fiscal deficits in both the PNFC sector and the general government sector will result inthe State non-financial public sector recording a deficit of 1.5 per cent of GSP in2000-01, as compared to a deficit of 0.4 per cent of GSP in 1999-2000. This position isexpected to steadily improve as the PNFC and general government sectors move intosurplus in the forward years.

The general government sector, on a cash basis, is expected to record a surplus of0.2 per cent of GSP in 2000-01, after a deficit of 1.1 per cent of GSP in 1999-2000.

Queensland has consistently recorded a negative net debt position in its non-financialpublic sector. Negative net debt is expected to fall from 1.1 per cent of GSP in1999-2000 to negative net debt of 0.4 per cent of GSP in 2000-01, before increasing againin 2002-03 and 2003-04.

Western Australia expects, on an accrual basis, a general government fiscal deficit of0.6 per cent of GSP in 2000-01, up from 0.4 per cent in 1999-2000. The sector is projectedto remain in deficit over the forward period.

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Western Australia’s PNFC sector is expected to increase its deficit from 0.1 per cent ofGSP to 0.3 per cent of GSP in 2000-01. Similarly, the State non-financial public sector isforecast to move from a deficit of 0.5 per cent of GSP to 0.9 per cent of GSP in 2000-01.

In cash terms, Western Australia’s general government sector is expected to remain indeficit in 2000-01 at 0.6 per cent of GSP. Large ongoing capital works programmeshave contributed to several cash deficits in the past, and are projected to contribute tofurther deficits in the forward estimate years.

Western Australia’s combined general government and PNFC net debt as a proportionof GSP is anticipated to decrease from 8.2 per cent to 7.1 per cent in 2000-01, withproceeds from the recent privatisation of State assets directed towards retiring debt.Net debt is projected to increase over the forward period.

South Australia’s general government sector, in accrual terms, is expected to remain infiscal deficit for the foreseeable future. The deficit is estimated at 0.7 per cent of GSP in2000-01, down from a deficit of 1.1 per cent in 1999-2000.

The total non-financial public sector in South Australia is expected to record a surplusof 1.9 per cent of GSP in 2000-01, compared with a surplus of 7.5 per cent in 1999-2000.The 1999-2000 and 2000-01 surpluses include proceeds from the long-term lease ofelectricity assets.

The general government sector is expected to record a small cash deficit in 2000-01,decreasing from a deficit of 0.6 per cent of GSP in 1999-2000. The sector is expected torecord modest cash deficits over the forecast period to 2003-04.

South Australia’s net debt position is expected to improve substantially again in2000-01, as further proceeds from the lease of electricity assets will be used to reducedebt. Net debt in the public non-financial sector is expected to move from 10.3 per centof GSP to 7.0 per cent in 2000-01.

Tasmania has experienced a considerable turnaround in its budget position in recentyears and the general government sector, after an expected cash surplus of 0.5 per centof GSP in 2000-01, is projected to remain in surplus over the forecast period through to2003-04.

A cash surplus of 0.3 per cent of GSP is expected for the PNFC sector in 2000-01, downfrom a surplus of 0.2 per cent of GSP in 1999-2000. The State non-financial public sectoris expected to remain in surplus in 2000-01, albeit down from 1.4 per cent of GSP in1999-2000 to 0.8 per cent.

Although high relative to other States, Tasmania’s non-financial public sector net debtto GSP ratio is continuing to fall. Successive cash surpluses and privatisation proceedshave contributed to improving Tasmania’s net debt position. State non-financial publicsector net debt as a proportion of GSP is expected to fall from 22.8 per cent in1999-2000 to 20.6 per cent in 2000-01.

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In accrual terms, the Australian Capital Territory’s general government sector isexpected to move from a fiscal surplus of 0.8 per cent of GSP in 1999-2000 to a surplusof 0.2 per cent in 2000-01. The fiscal balance in the PNFC sector is forecast to movefrom a surplus of 0.1 per cent of GSP in 1999-2000 to a surplus of 0.3 per cent in2000-01.

As a result of the combined developments in the general government and PNFCsectors, the Australian Capital Territory’s total non-financial public sector is expectedto record a fiscal surplus of 0.5 per cent of GSP in 2000-01.

The general government sector, in cash terms, is expected to fall from a cash surplus of1.5 per cent of GSP to 1.0 per cent in 2000-01. The general government sector isprojected to record surpluses in the forward years.

Net debt in the Australian Capital Territory as a proportion of GSP is expected to movefrom 1.0 per cent in 1999-2000 to a negative net debt position of 0.5 per cent in 2000-01.

In cash terms, the Northern Territory’s general government deficit of 1.5 per cent ofGSP in 1999-2000 is expected to fall to a deficit of 1.3 per cent of GSP in 2000-01. Thefiscal balance of the general government sector is forecast to steadily improve from2000-01 onwards, with cash deficits continuing to decrease in the forward estimateyears.

Due to the PNFC sector moving to a deficit of 0.6 per cent of GSP in 2000-01, thenon-financial public sector is set to record a higher deficit in 2000-01 of 1.9 per cent ofGSP, up from 1.2 per cent in 1999-2000.

State non-financial public sector net debt in the Northern Territory was 20.6 per cent ofGSP in 1999-2000, and is expected to move to 20.5 per cent of GSP in 2000-01.

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The Australian Loan Council is a Commonwealth-State Ministerial Council thatcoordinates total public sector borrowing under a voluntary agreement. The LoanCouncil comprises the Commonwealth Treasurer as Chairman, and State and TerritoryTreasurers. The Loan Council was established in 1927 under the Financial Agreementbetween the Commonwealth and the States, and continues under the Financial Agreementbetween the Commonwealth, States and Territories, which came into effect in 1995.

The present Loan Council arrangements emphasise transparency of public sectorfinancing rather than the adherence to strict borrowing limits. Essentially, they aredesigned to enhance the role of financial market scrutiny of borrowings by the publicsector and to facilitate informed judgments about each government’s financialperformance.

These arrangements, supported by the accrual uniform presentation framework (UPF),comprise three main stages:

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x Loan Council Allocation (LCA) nominations;

x Budget time LCA updates; and

x Loan Council Allocation outcomes.

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The Loan Council traditionally meets once a year to consider jurisdictions’ LCAnominations for the forthcoming year. The nominations draw from informationpresented in their mid-year budget updates and cover estimates for:

x the general government cash deficit/surplus;

x the PNFC sector cash deficit/surplus;

x net cash flows from investments in financial assets for policy purposes; and

x memorandum items.

These nominations are considered by the Loan Council, having regard to eachjurisdiction’s fiscal position and the macroeconomic implications of the aggregatefigure. Loan Council Allocations are on a headline rather than underlying basis as theyseek to measure a government’s call on financial markets.

In making their LCA nominations to the Loan Council, the Commonwealth and theStates also provide information on government contingent exposures underinfrastructure projects with private sector involvement. These exposures, which aremeasured as a government’s contractual liabilities in the event of termination of aproject, are not included as a component of the LCA as they are unlikely to be realised,and are thus materially different from actual borrowing undertaken to finance thepublic sector deficit. Government outlays under these projects, such as equitycontributions and ongoing commercial payments to the private sector, continue to beincluded in the annual total public sector balance, and hence the LCA.

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The Loan Council met on 30 March 2001 to consider LCA nominations for 2001-02.These nominations are set out in Table 14. In aggregate, they represent a surplus of$13.5 billion. The Loan Council observed that after several years of strong economicgrowth in Australia the outlook has moderated, and highlighted the importance ofmaintaining sound fiscal strategies. Against this background, the Loan Councilconsidered that the aggregate of LCA nominations is consistent with currentmacroeconomic policy objectives.

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As noted above, LCA nominations for all jurisdictions are prepared prior to thebeginning of the financial year. The actual call on financial markets may vary from thenomination primarily because of changes in economic parameters and policymeasures. Updated information will be provided to financial markets throughpublication by each jurisdiction of its budget time LCA and a mid-year update of itsexpected LCA outcome.

A tolerance limit of 2 per cent of total non-financial public sector revenue appliesbetween the LCA approved by the Loan Council and the budget time LCA, and laterbetween the budget time LCA and the LCA outcome. Tolerance limits recognise thatLCAs are nominated at a very early stage of budget processes and that estimates arelikely to change as a result of policy and parameter changes before and after budgetsare brought down. If a jurisdiction expects to exceed the upper or lower bound of thetolerance limit around its LCA estimate, it is obliged to report this situation.

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The Commonwealth’s budget time LCA estimate for 2001-02 is a $7.8 billion surplus.The budget time LCA estimate exceeds the lower bound of the nominated LCA bymore than the 2 per cent tolerance level. The components of the Commonwealth’sbudget time LCA for 2001-02 are shown in Table 15.

Jurisdictions are required to disclose government termination liabilities underinfrastructure projects with private sector involvement that operate for 10 years orlonger and involve gross project liabilities of at least $5 million. The Commonwealthplans no such projects in 2001-02.

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Jurisdictions are required under the accrual UPF to publish their LCA outcomes intheir final budget outcome reports, if not published earlier.

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The goods and services tax (GST) is levied on a broad range of goods and servicesacross the economy at a rate of 10 per cent. Some goods and services (such as basicfood, education and health services) are GST-free. For some other goods and services(such as financial supplies and residential accommodation), GST does not apply to thefinal sale, however the GST that has been paid on the inputs is not refundable.

The introduction of the GST was a part of The New Tax System, which included reducedpersonal and company taxes, a reduction in petroleum and diesel excise, the abolitionof wholesales sales tax (WST) and the abolition of some State taxes.

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Estimated GST revenue in 2001-02 has been revised down by around $550 million sincethe Mid-Year Economic and Fiscal Outlook 2000-01 (MYEFO). This is primarily due to theimpact of new policy decisions, including the decision to allow full input tax credits formotor vehicles purchased after Budget night.

Forecast GST cash revenue in 2000-01 has also been revised downwards by around$2.1 billion. This significant revision mainly reflects a reassessment of the net effect oftransitional factors on GST revenue in the first year.

Recent collections data suggests that the boost to first year GST revenue from one-offtransitional factors identified at MYEFO, while still substantial, will not be as large asanticipated. In particular, the WST credits on existing stock that taxpayers are entitledto claim in their initial GST returns have now totalled almost $2 billion � around$1 billion higher than anticipated at MYEFO.

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x As part of the introduction of The New Tax System, businesses were able to claimcredits against GST for WST paid on goods acquired before 1 July 2000 and soldfrom 1 July 2000. This credit could be used to offset a GST liability and could beclaimed until January 2001.

In addition, the estimated proportion of GST revenue relating to sales in 2000-01 butcollected in 2001-02 has been revised upwards since MYEFO. This arises mainlybecause a greater share of GST revenue than originally expected is being paid byquarterly rather than monthly payers, and only three quarterly payments are beingmade in 2000-01. In addition, more GST collected on imports is being recognised inactivity statement collections than initially estimated. This overall revision has led to adownwards revision to GST revenue in 2000-01, but has little impact on expected GSTrevenue in 2001-02.

Abstracting from transitional factors � which have been difficult to identify andestimate � the underlying GST base appears to be close to initial expectations.

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The Government has introduced a number of measures to improve GST collectionarrangements and to bring forward the provision of input tax credits for motorvehicles. The revenue costs of these measures, which are predominantly transitional,are effectively borne by the Commonwealth rather than the States through theprovisions of the funding guarantee under the new financial arrangements with theStates.

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Entities using substituted accounting periods will be able to lodge GST returns on aquarterly basis, subject to the existing $20 million annual turnover threshold andelection rules, from the first quarterly period of the 2001-02 income year. Previously,entities using substituted accounting periods were required to submit their GSTreturns monthly. The measure was introduced into Parliament on 5 April 2001 and willtake effect on 1 July 2001.

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Further details may be found in the Explanatory Memorandum to the Taxation LawsAmendment Bill (No. 3) 2001.

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GST registered businesses will be entitled to full input tax credits for motor vehicles,including trucks, acquired after midnight Budget night, 22 May 2001.

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Under The New Tax System, WST, generally 22 per cent on vehicles, was replaced with10 per cent GST, leading to lower tax. GST registered businesses are able to claim backthe GST they pay on inputs used to make taxable and GST-free supplies. Businessesable to claim input tax credits would go from 22 per cent WST to no tax at all. TheGovernment was concerned to minimise the disruption to the market that could haveoccurred if businesses were to defer purchasing motor vehicles in anticipation of thesecost reductions. Accordingly, the A New Tax System (Goods and Services TaxTransition) Act 1999 included provisions to phase in input tax credits for all motorvehicles. Input tax credits for new vehicle purchases were denied for the first12 months of the GST, 50 per cent input credits were to be allowed in the second yearof operation from 1 July 2001 and full input tax credits were to be available from thethird year onwards.

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The measure will pull forward the start date for full input tax credits from 1 July 2002to midnight Budget night, 22 May 2001. The measure should reduce the cost of motorvehicles to businesses by around 9.1 per cent, compared to prices before 1 July 2000.

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This measure ensures that the Commissioner of Taxation has the discretion to providetaxpayers with simpler ways to correct errors in GST returns. It reinforces existingpractice whereby taxpayers have been remedying GST errors made in a BusinessActivity Statement (BAS) by making a compensating change in the next BAS. Thisavoids the need for taxpayers to submit an amended BAS for an earlier period. Themeasure was announced on 5 April 2001 and has effect from 1 July 2000.

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GST-registered taxpayers with turnover of $2 million or less generally have the optionto pay quarterly GST instalments worked out for them by the Australian TaxationOffice (ATO) using the GDP-adjusted method. Furthermore, certain primaryproducers and special professionals (such as authors, entertainers and sportspersons)who opt for the GDP-adjusted method pay two GST instalments in respect of eachincome year, with the instalments corresponding with the third and fourth quarters ofthe income tax year.

This measure was announced on 22 February 2001 and applies to tax periods endingon or after 22 February 2001.

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Taxpayers who choose this option will pay quarterly instalments but will only have tosubmit one annual GST return, due not later than the time they submit their annualincome tax return (or 28 February 2002 for the current year). Those taxpayers willreceive customised instalment forms from the ATO that reduce information reportingrequirements, particularly in respect of other taxes that do not apply. For the 2000-01

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year, where it is not yet possible to base the third and fourth instalments on an annualGST amount, the instalments will be an amount equal to the second quarter BAS.

For cases where previous years’ adjusted payments are not suitable, provisions to varythe instalments advised by the ATO are available. To ease the transition to this systemfor taxpayers who elect to vary their payments, there will be a one-off 25 per centmargin for error instead of 15 per cent in the September 2001 quarter.

Further details may be found in the Explanatory Memorandum to the Taxation LawsAmendment Bill (No. 3) 2001.

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This Appendix provides information on estimated Commonwealth Specific PurposePayments (SPPs) to the States and local government, together with details ofrepayments and interest on advances (loans) to the States. The majority of theseadvances were funded from borrowings made on behalf of the States.

Consistent with the reporting of other financial data in the 2001-02 Budget Papers, datain this Appendix has been prepared on an accrual accounting basis. In addition, thetables also report payments made by the Commonwealth general government sectorrather than the more limited Commonwealth budget sector. This has the main effect ofincluding payments to the States and local government made by the AustralianNational Training Authority.

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This Table provides information on Commonwealth SPPs to the States together withdetails of repayments, advances and interest on advances. The majority of theseadvances were funded from borrowings made on behalf of the States under StateGovernments’ Loan Council programme.

Details are classified as follows:

• Specific Purpose Payments

− current;

− capital;

• repayments of advances (including repayments to the Debt Sinking Funds);

• details of new advances made; and

• interest on Commonwealth advances.

Specific Purpose Payment information is presented on a function basis, whichaggregates payments directed toward like objectives and purposes. Specific PurposePayments are further divided into those paid ‘to’ the States (by far the larger group bynumber) and those judged to be paid ‘through’ the States to other groups. Payments inthe latter group are indicated within the Table by (*) and separate totals for ‘to’ and‘through’ are provided in the summary at the end of the Table.

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Table B2 provides estimates for 2000-01 of each State’s share of the items included inTable B1.

Table B3 provides budget estimates for 2001-02 of each State’s share of the itemsincluded in Table B1. As in other years, the distribution of assistance for these yearsunder some programmes is dependent upon the recipient government undertaking toparticipate in particular programmes or approve particular projects. For a fewprogrammes, final decisions on the distribution of payments among the States havestill to be taken by the Commonwealth; for others, the final distribution for 2001-02will not be settled before further data becomes available. In most cases, provisional ornotional estimates of the distribution are included. This does not commit theCommonwealth to a particular project or indicate that a State has agreed to participatein the programme.

Specific Purpose Payments ‘through’ the States are indicated in the Tables by (*).

A summary of total payments ‘to’ and ‘through’ the States is provided at the end ofeach Table.

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These tables provide information on Commonwealth SPPs to local governmentauthorities on a functional basis.

Table B4 provides information on estimated Commonwealth SPPs to local governmentauthorities for the years 2000-01 to 2004-05.

Table B5 provides estimates of the distribution of the SPPs direct to local governmentauthorities among the States for 2000-01.

Table B6 provides an indicative distribution of SPPs direct to local governmentauthorities among the States for 2001-02. The actual distribution of some paymentsmay change in light of factors such as revisions to estimates and national priorities.

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Table C1 sets out the population series used in this Paper.

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The population series that underlie per capita estimates in this Paper for 2000-01 and2001-02 are projections for 31 December 2000 and 31 December 2001 respectively.These projections were prepared by the Australian Bureau of Statistics (ABS) and areon the basis of assumptions agreed to by the Commonwealth Treasury.

Table C2 sets out the parameters used in this Paper, rounded to the nearest quarter.

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The parameters for population in 2000-01 and 2001-02 are based on the estimatedannual growth in the Australian population to 31 December 2000 and31 December 2001 respectively.

The first consumer price index (CPI) parameters listed for 2000-01 and 2001-02 arebased on estimated year-average growth in the headline CPI in the year to the Marchquarter 2001 and the year to the March quarter 2002 respectively, including theestimated impact of indirect tax reform. The second CPI parameters listed for 2000-01and 2001-02 are based on estimated year-average growth in the headline CPI in theyear to the March quarter 2001 and the year to the March quarter 2002 respectively,excluding the estimated impact of indirect tax reform.

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The choice of CPI parameter to be used in calculating payments that are subject toindexation is determined by legislation or other arrangements, and is reported in thedescription that accompanies the relevant payment in this Paper.

�857+(5 ,1)250$7,21

A number of ABS publications also provide information that is relevant to analysingCommonwealth financial relations with other levels of government, including:

• Government Financial Estimates, Australia (Cat. No. 5501.0);

• Taxation Revenue, Australia (Cat. No. 5506.0);

• Government Finance Statistics, Australia (Cat. No. 5512.0)

• Government Finance Statistics — Concepts, Sources and Methods (Cat. No. 5514.0);

• Information Paper: Developments in Government Finance Statistics, Australia(Cat. No. 5516.0); and

• Information Paper: Accruals Based Government Finance Statistics, Australia(Cat. No. 5517.0).

Some of the data presented in this Paper are drawn from Commonwealth GrantsCommission’s Report on State Revenue Sharing Relativities 2001 Update, State andTerritory 1999-2000 budget outcomes, 2000-01 mid-year budget updates and State andTerritory 2001-02 Budgets where available.

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AA New Tax System (Commonwealth-State

Financial Arrangements) Act 1999 · 1, 7A New Tax System (Commonwealth-State

Financial Arrangements — ConsequentialProvisions) Act 1999 · 1

Accommodation taxes · 6, 11–12Australian Capital Territory

General government sector · 32Non-financial public sector · 32Special Revenue Assistance · 13

Australian Loan Council · See Loan CouncilAustralian Taxation Office · 6, 39–41

BBudget Balancing Assistance · 2–3, 10–12

CCommonwealth Grants Commission

Assessments · 14, 17Commonwealth Grants Commission

Act 1973 · 16Horizontal fiscal equalisation · 16–19Methodology reviews · 17–18Report on State Revenue Sharing Relativities

2001 Update · 7, 13, 18Commonwealth-State financial relations · 1–6,

10

FFinancial Assistance Grants · 11–12, 18, 24, 25Financial Institutions Duty · 1, 6, 10, 16First Home Owners Scheme · 1, 6, 11–12Fiscal developments · 27–32

Australian Capital Territory · 32New South Wales · 29Northern Territory · 32Queensland · 30South Australia · 31Tasmania · 31Victoria · 30Western Australia · 30

GGambling taxes · 11–12General purpose assistance

Local government · 23–25

Specific Purpose Payments · 23–25General revenue assistance · 2, 10–16, 23Goods and services tax

Credits · 38Measures · 38–41

Flexible administration of GST errors · 40GDP-adjusted method for calculating GST

remittances · 40Input tax credits for motor vehicles · 39Lodgement of GST returns on a quarterly

basis · 39Provision of revenue to the States · 1–6, 7–20Registrations · 6, 40Revenue · 37–38

Guaranteed Minimum Amount · 10–12, 19–20

HHealth Care Grants · 7Horizontal fiscal equalisation · 7, 16–20, 24

Commonwealth Grants Commission · 16–19

IIntergovernmental Agreement on the Reform of

Commonwealth-State Financial Relations · 1,14

LLoan Council · 32–35

Allocations · 32–35Local Government (Financial Assistance)

Act 1995 · 23

MMinisterial Council for Commonwealth-State

Financial Relations · 1, 6, 7, 10, 18Mirror taxes · 14, 16

NNational Competition Council · 13National Competition Policy Payments · 2–3,

10, 13New South Wales

General government sector · 29Non-financial public sector · 29

Northern TerritoryGeneral government sector · 32Non-financial public sector · 32

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OOff-road diesel subsidies · 11–12

PParameter estimates · 99-100

QQueensland


RRevenue Replacement Payments · 14–16Road funding · 24–25

SSafety net arrangements · 14–16South Australia


Special Revenue Assistance · 2–3, 10, 13Specific Purpose Payments · 2, 21–23

Direct to local government · 21Through the States · 3, 21–23To the States · 2, 21–23

Stamp duty · 1, 6, 10, 16States and Territories

Cash surplus · 27–28Commonwealth payments · 2–5, 7–20Fiscal developments · 27–32General government sector · 27General purpose assistance · 23General revenue assistance · 2Goods and services tax administration costs ·

6, 11–12

Goods and services tax revenue provision ·1–6, 7–20

Net debt · 28–29Non-financial public sector · 27Specific Purpose Payments · 2, 21–23Taxes · 1, 6

TTasmania


Tax reform · 10Taxes

Accommodation · 6, 11–12Alcohol · 14–16Debits · 16Diesel · 37Land · 16Mirror · 14–16Payroll · 16Petroleum · 14–16, 37Stamp duty · 1, 6, 10, 16Tobacco · 14–16Wholesales sales tax · 37

The New Tax System · 1, 6, 24, 37

VVictoria


WWestern Australia


Wholesale sales tax payments · 11–12

federal financial relations 2001-02 - budget · 2001-02 budget paper no. 3 federal financial...

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