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senate vote 2018-06-20#16
Edited by
mackay staff
on
2018-07-13 12:17:11
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Title
Motions — Goods and Services Tax- Motions - Goods and Services Tax - Northern Territory productivity
Description
<p class="speaker">Cory Bernardi</p><p>I seek leave to amend general business notice of motion No. 855 standing in my name by substituting the word 'Treasurer' for the words 'Minister for Finance (Senator Cormann)' in paragraph (c).</p><p>Leave granted.</p>- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?id=2018-06-20.182.1) introduced by Australian Conservatives Senator [Cory Bernardi](https://theyvoteforyou.org.au/people/senate/sa/cory_bernardi), which means it failed.
- ### Motion text
- > *That the Senate—*
- > *(a) notes the relativities under the Goods and Services Tax (GST) formula show that the Northern Territory has been a substantial outrider at a relativity in excess of 4 since the GST began, compared with every other state and territory having a relativity of less than 2;*
- > *(b) also notes the most recent GST distributions whereby:*
- >> *(i) the Northern Territory has a population of 200,000 and received $2 billion in the last distribution,*
- >> *(ii) Western Australia has 2 million in population and a $2 billion distribution, and*
- >> *(iii) New South Wales had 7 million in population and a $17 billion distribution; and*
- > *(c) calls upon the Treasurer to direct the Productivity Commission to conduct a full cost–benefit analysis of the Northern Territory's present self-government model, and whether the Commonwealth needs to directly intervene to rapidly improve the Northern Territory's drag on national productivity.*
<p>I move the motion as amended:</p><p class="italic">That the Senate—</p><p class="italic">(a) notes the relativities under the Goods and Services Tax (GST) formula show that the Northern Territory has been a substantial outrider at a relativity in excess of 4 since the GST began, compared with every other state and territory having a relativity of less than 2;</p><p class="italic">(b) also notes the most recent GST distributions whereby:</p><p class="italic">  (i) the Northern Territory has a population of 200,000 and received $2 billion in the last distribution,</p><p class="italic">  (ii) Western Australia has 2 million in population and a $2 billion distribution, and</p><p class="italic">  (iii) New South Wales had 7 million in population and a $17 billion distribution; and</p><p class="italic">(c) calls upon the Treasurer to direct the Productivity Commission to conduct a full cost–benefit analysis of the Northern Territory's present self-government model, and whether the Commonwealth needs to directly intervene to rapidly improve the Northern Territory's drag on national productivity.</p> <p class="speaker">James McGrath</p><p>I seek leave to make a short statement.</p> <p class="speaker">Scott Ryan</p><p>Leave is granted for one minute.</p> <p class="speaker">James McGrath</p><p>The coalition government has taken responsible action with additional financial assistance of $259 million to protect the Northern Territory from the extreme outcomes resulting from the 2018-19 GST distribution, which has placed essential services under pressure. The total GST bill has been increased by around $2 billion this year alone as a direct result of the integrity measures the Commonwealth has introduced and legislated to improve the GST take. This is money that goes to all states and territories to provide essential services like schools, hospitals and police.</p> <p class="speaker">Peter Georgiou</p><p>I seek leave to make a short statement.</p> <p class="speaker">Scott Ryan</p><p>Leave is granted for one minute.</p> <p class="speaker">Peter Georgiou</p><p>This motion argues that the Northern Territory is a drain on national productivity. Right now, WA gets 34 cents in every dollar for its GST share. In the NT, the GST share is $4.66. How does this work? In other words, every person in the NT receives $12,000, compared to just $882 for every person in WA. Tasmanians get $4,600 per head, South Australians $3,600 per head and Victorians $2,389 per head. These figures have been confirmed by the Parliamentary Library today. In 2016-17, Western Australia accounted for 35 per cent of the nation's exports—that's 35 per cent of our exports. The Northern Territory accounted for just 1.6 per cent. Western Australia is by far the country's leading state on a balance-of-payments basis. The government must now release the Productivity Commission report on the GST and implement its recommendations. More GST for WA right now.</p> <p class="speaker">Malarndirri McCarthy</p><p>I seek leave to make a short statement.</p> <p class="speaker">Scott Ryan</p><p>Leave is granted for one minute.</p> <p class="speaker">Malarndirri McCarthy</p><p>Labor opposes this motion. In the Northern Territory there are many remote communities that suffer from high levels of disadvantage. We have a historical deficit. When it comes to issues such as infrastructure, housing, education and health, these need to be addressed if we are to have equal access to economic and social opportunities. The fact is that it costs more to run a health clinic in Yuendumu than it does in Melbourne. More than 70 per cent of our roads are unsealed. The massive GST cut recently inflicted on the Territory is the equivalent of closing every school in the Northern Territory and it will affect the people of the Northern Territory for years to come. With a population of around 250,000, generating own-source revenue is a challenge for the Territory. We do everything we can to attract private investment. Developing the north needs a national effort and it is to the advantage of all Australians that we pursue this common agenda.</p> <p class="speaker">Scott Ryan</p><p>The question is that motion No. 855, as amended, be agreed to.</p>
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