Senate hopeful Subiaco Councillor Julie Matheson said she is very concerned about Western Australia’s looming financial crisis and the cost shifting from the State Government to ratepayers of local government after WA received just 0.1% increase in the GST to 3.4%.
The State Government has withdrawn many community services initiatives expecting local governments to pick up the tab. The Emergency Services Levy has been offloaded to local government to collect, appearing on rate notices as a local government cost, not from the State Government.
Significantly, the State Government has washed its hands of providing a coherent and co-ordinated approach to waste management leaving individual local councils to muddle their way through a program without direct financial support, and perhaps more levy’s to ratepayers we have not predicted yet.
In this State a looming financial crisis beckons. The reasons for this are:
- In 2016 WA’s share of the GST will increase by just 0.1 percent to 3.4 percent
- Western Australia is averaging $714 per resident of the GST. The rest of Australia is averaging $2,370 per resident.
- WA missing out on it 11% share of the Federal Government’s $73billion a year fuel excise tax to fund roads throughout this large State.
- Past WA’s budget projections assumed the iron ore price would remain at about A$140 per tonne, and the Government has spent to that predicted figure. In February 2016 the iron ore spot price plunged to US$47 (a bit over A$60) a tonne. If it hovers at this level, our State’s royalties will be halved from $6 billion in iron ore to about $3 billion at best.
- A budget deficit of $3billion.
- WA has little to show from the mining boom 2003 to 2010. No MAX light rail, forecast debt of $36billion in 2017, and substantial cost increases in electricity, water tariffs, public transport, drivers’ licence fees, compulsory third party, and Emergency Services Levy from 1 July 2015.
- WA’s credit rating is again lowered to Aa2 in 2016, to be less than Tasmania.
- Selling off taxpayer assets to reduce debt will be the only option to bring the debt under control if Western Australia does not get its fair share of Federal funding and jobs.
- Increased Loan Guarantee Fees by WA Treasury Corporation to ratepayers of local government.
- The State Government’s cost shifting of services to local governments where ratepayers will foot the bill.
Subiaco Councillor Julie Matheson was born and raised in the Pilbara of Western Australia, is a director of the Financial Planning Association of Australia, and a Convocation Council member at UWA.
To volunteer or donate to Julie’s election campaign, click here: https://juliematheson.com.au/donate-or-volunteer/
Media enquiries: Julie Matheson on 0409 294 495