Victoria's spending decision reignites spat between states over GST carve-up
Responding to a complaint from Queensland Treasurer David Janetzki about the latest distribution, which granted Victoria an additional $3.7 billion while leaving his state $2 billion worse off, Allan said that in every previous year since the GST's introduction, Victoria had subsidised other states including Queensland.
'As we have seen since the inception of the GST, Victoria has received something like $31 billion less than its population share over that period of time,' Allan said. 'So we have been receiving less GST than we send up to Canberra and goes off to other states, including Queensland.'
She said the Commonwealth Grants Commission, in its GST divvy-up announced in March, had belatedly recognised the fiscal pressures on Victoria caused by its strong population growth and absence of a large resource sector.
'Unlike those resource rich states of Queensland and Western Australia, where they literally dig it out of the ground ... we are a people state,' Allan said.
'We're a great state, we're a growing state, we're a state that's built on the skills and talent of our people, and it is more than beyond time that was recognised by us getting our fair share.'
Queensland's GST gripe opened a new fissure in Victoria's post-budget debate about the health of the state's finances, with former treasurer Michael O'Brien pointing out that where Victoria received 88¢ back for every GST dollar raised during his tenure, it will now receive $1.07.
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'Victoria used to have a strong set of finances, a strong economy, and we were a net contributor to other states,' he said. 'Now we are a basket case, and we have got our hand out with a begging bowl and other states are now paying for us.'
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The Advertiser
5 hours ago
- The Advertiser
The economic roundtable kicks off today. Here's what to expect
An "ambitious" group of about 50 economists, leaders and academics will descend on Parliament House today for the Treasurer's much-touted economic reform roundtable. The event will run across three days, each with two to three sessions dedicated to areas the government sees as ripe for change. Productivity will be a major focus of the three-day discussion, including a whole day's agenda dedicated to it, as the government grapples with how to do more with less. Following an opening address by the Prime Minister, Treasurer Jim Chalmers will kick off the first day of discussions on Tuesday morning. In an opening address, Dr Chalmers is expected to call on attendees to share concrete ideas for boosting productivity, with some parameters. "We need to be able to pay for them," he will tell the group. "We need you to be willing to test them with others in this room. We need you to be willing to compromise and find common ground." The Treasurer said the roundtable was about building consensus, so he expected participants to think beyond commercial interests and focus on the national economic interest instead. Here's everything you need to know about what the next three days hold. Each day of the roundtable will have a general theme. Day one is resilience, day two is productivity, while day three is all about budget sustainability and tax reform. Productivity is likely to be a big part of all discussions, given Australia's productivity growth has been stalling for years. Artificial intelligence, and the productivity gains possible from it, will also be a strong theme, and will have a session dedicated to it on day two. The final day's focus is all about tax and the budget, with a session on government services, spending and care and another on creating a better tax system. There has been plenty of criticism about how far the government is willing to go on tax reform, given the Treasurer has effectively ruled out changes to GST, negative gearing and the capital gains tax discount. Read the full agenda below: A core group of 23 attendees will take part in all three days, while another 25 attendees have been invited to participate in specific sessions. The Treasurer has described it as an "ambitious" group of leaders from business, unions, civil society, government and academia. To discuss tax reform, the Treasurer has invited Grattan Institute CEO Aruna Sathanapally, Australian National University Professor Bob Breunig, economist Chris Richardson and Commissioner of Taxation Rob Heferen to take part. BHP Australia president Geraldine Slattery, Australian Conservation Foundation CEO Kelly O'Shanassy and e61 Institute CEO Michael Brennan have been invited to attend the session on better regulation and approvals. Meanwhile, the Treasurer invited Strategic Examination of Research and Development chair Robyn Denholm and CSIRO chair Ming Long to discuss AI and innovation. Various groups and unions have already hinted at what they'll be pitching at the roundtable. The Community and Public Sector Union wants strong, responsible regulation around AI that protects public service jobs and ensures workers benefit from any AI gains. The Business Council of Australia, alongside 29 other industry groups, wants to see a 25 per cent reduction in red tape by 2030 and improvements to planning approvals. They will call for an overhaul of the Environment Protection and Biodiversity Conservation Act, which they say would help major projects move forward. The Australian Council of Trade Unions wants the country to move to a four-day work week, arguing shorter working hours could boost living standards and productivity. The Australian Council of Social Services will urge the government to change how it funds community services and abandon competitive tendering arrangements that it says undermine service quality in childcare, aged care and employment services. In terms of tax reform, ACOSS wants the capital gains tax discount halved and fairer tax treatment of superannuation. Meanwhile, the Productivity Commission has released a series of reports ahead of the roundtable with recommendations ranging from lowering corporate taxes to providing greater data access to individuals. The Treasurer has played down hopes of any major decisions being made across the three days but says the roundtable will help inform the next three budgets. In his opening remarks, he will share the three outcomes the government wants to build consensus on. "Clear reform directions - areas where there's momentum and broad agreement on the direction of travel even if unanimity isn't there yet," he will say. "Specific reforms - the handful of changes we could all agree on now. "And ongoing priorities - where there's appetite in the room for further work." An "ambitious" group of about 50 economists, leaders and academics will descend on Parliament House today for the Treasurer's much-touted economic reform roundtable. The event will run across three days, each with two to three sessions dedicated to areas the government sees as ripe for change. Productivity will be a major focus of the three-day discussion, including a whole day's agenda dedicated to it, as the government grapples with how to do more with less. Following an opening address by the Prime Minister, Treasurer Jim Chalmers will kick off the first day of discussions on Tuesday morning. In an opening address, Dr Chalmers is expected to call on attendees to share concrete ideas for boosting productivity, with some parameters. "We need to be able to pay for them," he will tell the group. "We need you to be willing to test them with others in this room. We need you to be willing to compromise and find common ground." The Treasurer said the roundtable was about building consensus, so he expected participants to think beyond commercial interests and focus on the national economic interest instead. Here's everything you need to know about what the next three days hold. Each day of the roundtable will have a general theme. Day one is resilience, day two is productivity, while day three is all about budget sustainability and tax reform. Productivity is likely to be a big part of all discussions, given Australia's productivity growth has been stalling for years. Artificial intelligence, and the productivity gains possible from it, will also be a strong theme, and will have a session dedicated to it on day two. The final day's focus is all about tax and the budget, with a session on government services, spending and care and another on creating a better tax system. There has been plenty of criticism about how far the government is willing to go on tax reform, given the Treasurer has effectively ruled out changes to GST, negative gearing and the capital gains tax discount. Read the full agenda below: A core group of 23 attendees will take part in all three days, while another 25 attendees have been invited to participate in specific sessions. The Treasurer has described it as an "ambitious" group of leaders from business, unions, civil society, government and academia. To discuss tax reform, the Treasurer has invited Grattan Institute CEO Aruna Sathanapally, Australian National University Professor Bob Breunig, economist Chris Richardson and Commissioner of Taxation Rob Heferen to take part. BHP Australia president Geraldine Slattery, Australian Conservation Foundation CEO Kelly O'Shanassy and e61 Institute CEO Michael Brennan have been invited to attend the session on better regulation and approvals. Meanwhile, the Treasurer invited Strategic Examination of Research and Development chair Robyn Denholm and CSIRO chair Ming Long to discuss AI and innovation. Various groups and unions have already hinted at what they'll be pitching at the roundtable. The Community and Public Sector Union wants strong, responsible regulation around AI that protects public service jobs and ensures workers benefit from any AI gains. The Business Council of Australia, alongside 29 other industry groups, wants to see a 25 per cent reduction in red tape by 2030 and improvements to planning approvals. They will call for an overhaul of the Environment Protection and Biodiversity Conservation Act, which they say would help major projects move forward. The Australian Council of Trade Unions wants the country to move to a four-day work week, arguing shorter working hours could boost living standards and productivity. The Australian Council of Social Services will urge the government to change how it funds community services and abandon competitive tendering arrangements that it says undermine service quality in childcare, aged care and employment services. In terms of tax reform, ACOSS wants the capital gains tax discount halved and fairer tax treatment of superannuation. Meanwhile, the Productivity Commission has released a series of reports ahead of the roundtable with recommendations ranging from lowering corporate taxes to providing greater data access to individuals. The Treasurer has played down hopes of any major decisions being made across the three days but says the roundtable will help inform the next three budgets. In his opening remarks, he will share the three outcomes the government wants to build consensus on. "Clear reform directions - areas where there's momentum and broad agreement on the direction of travel even if unanimity isn't there yet," he will say. "Specific reforms - the handful of changes we could all agree on now. "And ongoing priorities - where there's appetite in the room for further work." An "ambitious" group of about 50 economists, leaders and academics will descend on Parliament House today for the Treasurer's much-touted economic reform roundtable. The event will run across three days, each with two to three sessions dedicated to areas the government sees as ripe for change. Productivity will be a major focus of the three-day discussion, including a whole day's agenda dedicated to it, as the government grapples with how to do more with less. Following an opening address by the Prime Minister, Treasurer Jim Chalmers will kick off the first day of discussions on Tuesday morning. In an opening address, Dr Chalmers is expected to call on attendees to share concrete ideas for boosting productivity, with some parameters. "We need to be able to pay for them," he will tell the group. "We need you to be willing to test them with others in this room. We need you to be willing to compromise and find common ground." The Treasurer said the roundtable was about building consensus, so he expected participants to think beyond commercial interests and focus on the national economic interest instead. Here's everything you need to know about what the next three days hold. Each day of the roundtable will have a general theme. Day one is resilience, day two is productivity, while day three is all about budget sustainability and tax reform. Productivity is likely to be a big part of all discussions, given Australia's productivity growth has been stalling for years. Artificial intelligence, and the productivity gains possible from it, will also be a strong theme, and will have a session dedicated to it on day two. The final day's focus is all about tax and the budget, with a session on government services, spending and care and another on creating a better tax system. There has been plenty of criticism about how far the government is willing to go on tax reform, given the Treasurer has effectively ruled out changes to GST, negative gearing and the capital gains tax discount. Read the full agenda below: A core group of 23 attendees will take part in all three days, while another 25 attendees have been invited to participate in specific sessions. The Treasurer has described it as an "ambitious" group of leaders from business, unions, civil society, government and academia. To discuss tax reform, the Treasurer has invited Grattan Institute CEO Aruna Sathanapally, Australian National University Professor Bob Breunig, economist Chris Richardson and Commissioner of Taxation Rob Heferen to take part. BHP Australia president Geraldine Slattery, Australian Conservation Foundation CEO Kelly O'Shanassy and e61 Institute CEO Michael Brennan have been invited to attend the session on better regulation and approvals. Meanwhile, the Treasurer invited Strategic Examination of Research and Development chair Robyn Denholm and CSIRO chair Ming Long to discuss AI and innovation. Various groups and unions have already hinted at what they'll be pitching at the roundtable. The Community and Public Sector Union wants strong, responsible regulation around AI that protects public service jobs and ensures workers benefit from any AI gains. The Business Council of Australia, alongside 29 other industry groups, wants to see a 25 per cent reduction in red tape by 2030 and improvements to planning approvals. They will call for an overhaul of the Environment Protection and Biodiversity Conservation Act, which they say would help major projects move forward. The Australian Council of Trade Unions wants the country to move to a four-day work week, arguing shorter working hours could boost living standards and productivity. The Australian Council of Social Services will urge the government to change how it funds community services and abandon competitive tendering arrangements that it says undermine service quality in childcare, aged care and employment services. In terms of tax reform, ACOSS wants the capital gains tax discount halved and fairer tax treatment of superannuation. Meanwhile, the Productivity Commission has released a series of reports ahead of the roundtable with recommendations ranging from lowering corporate taxes to providing greater data access to individuals. The Treasurer has played down hopes of any major decisions being made across the three days but says the roundtable will help inform the next three budgets. In his opening remarks, he will share the three outcomes the government wants to build consensus on. "Clear reform directions - areas where there's momentum and broad agreement on the direction of travel even if unanimity isn't there yet," he will say. "Specific reforms - the handful of changes we could all agree on now. "And ongoing priorities - where there's appetite in the room for further work." An "ambitious" group of about 50 economists, leaders and academics will descend on Parliament House today for the Treasurer's much-touted economic reform roundtable. The event will run across three days, each with two to three sessions dedicated to areas the government sees as ripe for change. Productivity will be a major focus of the three-day discussion, including a whole day's agenda dedicated to it, as the government grapples with how to do more with less. Following an opening address by the Prime Minister, Treasurer Jim Chalmers will kick off the first day of discussions on Tuesday morning. In an opening address, Dr Chalmers is expected to call on attendees to share concrete ideas for boosting productivity, with some parameters. "We need to be able to pay for them," he will tell the group. "We need you to be willing to test them with others in this room. We need you to be willing to compromise and find common ground." The Treasurer said the roundtable was about building consensus, so he expected participants to think beyond commercial interests and focus on the national economic interest instead. Here's everything you need to know about what the next three days hold. Each day of the roundtable will have a general theme. Day one is resilience, day two is productivity, while day three is all about budget sustainability and tax reform. Productivity is likely to be a big part of all discussions, given Australia's productivity growth has been stalling for years. Artificial intelligence, and the productivity gains possible from it, will also be a strong theme, and will have a session dedicated to it on day two. The final day's focus is all about tax and the budget, with a session on government services, spending and care and another on creating a better tax system. There has been plenty of criticism about how far the government is willing to go on tax reform, given the Treasurer has effectively ruled out changes to GST, negative gearing and the capital gains tax discount. Read the full agenda below: A core group of 23 attendees will take part in all three days, while another 25 attendees have been invited to participate in specific sessions. The Treasurer has described it as an "ambitious" group of leaders from business, unions, civil society, government and academia. To discuss tax reform, the Treasurer has invited Grattan Institute CEO Aruna Sathanapally, Australian National University Professor Bob Breunig, economist Chris Richardson and Commissioner of Taxation Rob Heferen to take part. BHP Australia president Geraldine Slattery, Australian Conservation Foundation CEO Kelly O'Shanassy and e61 Institute CEO Michael Brennan have been invited to attend the session on better regulation and approvals. Meanwhile, the Treasurer invited Strategic Examination of Research and Development chair Robyn Denholm and CSIRO chair Ming Long to discuss AI and innovation. Various groups and unions have already hinted at what they'll be pitching at the roundtable. The Community and Public Sector Union wants strong, responsible regulation around AI that protects public service jobs and ensures workers benefit from any AI gains. The Business Council of Australia, alongside 29 other industry groups, wants to see a 25 per cent reduction in red tape by 2030 and improvements to planning approvals. They will call for an overhaul of the Environment Protection and Biodiversity Conservation Act, which they say would help major projects move forward. The Australian Council of Trade Unions wants the country to move to a four-day work week, arguing shorter working hours could boost living standards and productivity. The Australian Council of Social Services will urge the government to change how it funds community services and abandon competitive tendering arrangements that it says undermine service quality in childcare, aged care and employment services. In terms of tax reform, ACOSS wants the capital gains tax discount halved and fairer tax treatment of superannuation. Meanwhile, the Productivity Commission has released a series of reports ahead of the roundtable with recommendations ranging from lowering corporate taxes to providing greater data access to individuals. The Treasurer has played down hopes of any major decisions being made across the three days but says the roundtable will help inform the next three budgets. In his opening remarks, he will share the three outcomes the government wants to build consensus on. "Clear reform directions - areas where there's momentum and broad agreement on the direction of travel even if unanimity isn't there yet," he will say. "Specific reforms - the handful of changes we could all agree on now. "And ongoing priorities - where there's appetite in the room for further work."
AU Financial Review
11 hours ago
- AU Financial Review
Why AI is an industrial relations challenge for business
For years, we have been told that our productivity problem can be solved by taxing landlords, lifting the GST, or reining in big business. The latest hope is that AI will be the breakthrough. But AI will not transform the economy simply by existing. Without the ability to redesign jobs and workflows, it will go the way of many other over-hyped technologies – present in the headlines, absent in the productivity figures. History is clear on this point. When electricity replaced steam, most factories initially swapped the motor but kept the same layout. It was only when firms reorganised production lines to exploit electricity's flexibility that output surged. Computers followed the same path – Robert Solow famously observed that they were 'everywhere except in the productivity statistics' until businesses redesigned work around them. AI will follow the same pattern. Adoption matters more than invention.
Canberra Times
17 hours ago
- Canberra Times
The economic roundtable kicks off today. Here's what to expect
There has been plenty of criticism about how far the government is willing to go on tax reform, given the Treasurer has effectively ruled out changes to GST, negative gearing and the capital gains tax discount.
