FISCAL CONTRIBUTIONS BY THE STATES
At the 1996 Premiers' Conference, it was agreed that
the States would make payments to the Commonwealth
of $619 million in 1996-97, $640 million in 1997-98
and $300 million in 1998-99 as a contribution to the
Commonwealth's deficit reduction programme. The States
decided that the payments would be shared among them
on an equal per capita basis.
The need for the States to make these fiscal contributions
was reviewed at the 1997 Premiers' Conference. It was
agreed to maintain the existing schedule of fiscal
contribution payments other than for Tasmania and the
Australian Capital Territory. In recognition of the
difficult economic circumstances faced by these jurisdictions,
it was agreed that they should defer half of their
scheduled 1997-98 fiscal contributions, of $16.3 million
and $10.7 million respectively, until 1998-99. This
reduced the total fiscal contribution from the States
in 1997-98 to $627 million. The need for the revised
fiscal contribution of $313 million in 1998-99 will
be reviewed at the 1998 Premiers' Conference in the
light of developments in the Commonwealth's fiscal
position.
Table 16 shows the estimated contributions of each
State in the three years to 1998-99 on the basis agreed
at the 1997 Premiers' Conference and the method of
payment by each State in 1996-97.
Table 16: Fiscal Contributions by the States
- (a) Payments provided under the Commonwealth-State
Housing Agreement.
The Commonwealth has provided the States with flexibility
on the method of payment for fiscal contributions.
This may take the form of direct weekly payments to
the Commonwealth, weekly deductions from general revenue
assistance or reductions in the Commonwealth's payment
of an SPP. The Commonwealth is prepared to accept payment
by reductions in an SPP where this is consistent with
its policy objectives and decisions underlying the
payment and on the basis that any conditions attaching
to the SPP, including the level of the State's matching
commitments prior to the reduction, will continue unchanged.
