Fed: States tell Democrats to back off on GST revenue spending

AAP General News (Australia)
08-14-2000
Fed: States tell Democrats to back off on GST revenue spending

Most state leaders have rejected a proposal by the Australian Democrats for a revamped
premiers conference to decide how to spend the states' GST revenue.

Democrats leader MEG LEES says national planning is needed to work out how to spend
the GST revenue which will go to the states.

But the states believe they are capable of deciding how to spend the money without
the help of the Democrats.

New South Wales treasurer MICHAEL EGAN says there's no evidence of the billion dollar
windfall Senator LEES is predicting.

Under current forecasts it will be around 2007 before all of the states and territories
are better off under the new tax.

But Senator LEES forcasts at least 10 per cent more revenue from the GST than is expected
because of the greater number of business registrations.

West Australian Premier RICHARD COURT says Senator LEES' comments sound like a bad
case of premature excitement.

Senator LEES says the money should be spent on education, the abolition of the bank
accounts debits tax, public hospitals, public transport and the environment.

AAP RTV eg/dmc i

KEYWORD: TAX STATES (CANBERRA)

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