The Commonwealth Budget – Overview 2003-04

High resolution version

States will receive GST revenue totalling an estimated $31.7 billion in 2003-04

States benefit from GST

The reforms to Commonwealth–State financial relations introduced under The New Tax System deliver every dollar of GST to the States, giving them a secure revenue base and allowing them to abolish inefficient State taxes. After just 3 years, most States are better off than they would have been had the Government not implemented tax reform.

States better off

After just three years of The New Tax System, most States are expected to receive more revenue than they would have had the Government not implemented tax reform.

In 2002-03

• Queensland will receive $80 million more
• The Northern Territory will receive $9 million more

In 2003-04

• Queensland will receive $197 million more
• Western Australia will receive $14 million more
• Tasmania will receive $8 million more
• The Australian Capital Territory will receive $10 million more
• The Northern Territory will receive $41 million more.

Taxes abolished

The New Tax System has also allowed the abolition of a number of inefficient State taxes

• Accommodation taxes
• Financial Institutions Duty
• Stamp duty on quoted marketable securities

The abolition of these taxes will save taxpayers an estimated $2.3 billion in 2003-04.

Debits tax is scheduled to be abolished by no later than 1 July 2005.