30/03/1999 - 22:00

WA's Federal bill blows out

30/03/1999 - 22:00

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WA’S subsidy of other Australian states has jumped by 25 per cent, a State Treasury survey has found. WA provides the highest subsidy of any state or territory.

WA's Federal bill blows out
WA’S subsidy of other Australian states has jumped by 25 per cent, a State Treasury survey has found.

WA provides the highest subsidy of any state or territory.

Premier Richard Court said the study showed WA provided a subsidy to the Federation of $2.5 billion in 1996-97.

That is $2.5 billion more to the Federal Government through taxes, royalties and other revenues than the Federal Government spent on WA.

In effect, every Western Australian is giving the Federal Government $1,417.

Victorians provide $323 per capita. Tasmania actually gets a grant worth an additional $2,245 per person.

“The subsidy has grown dramatically in recent years, more than tripling between 1991-02 and 1996-97,” Mr Court said.

“Our contribution jumped half a billion dollars between 1995-96 and 1996-97 alone.”

Mr Court said he recognised that within a Federation the stronger states would financially support those in a weaker position.

“No one can doubt WA is more than paying its way in the Federation, yet the latest recommendations by the Grants Commission could see this subsidy grow even further,” he said.

The Grants Commission recent-ly recommended the Federal Government cut WA’s funding by $90 million for 1999-2000.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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