I refer to the GST deal. What Territory taxes will remain in force and how much will this cost Territory taxpayers?

ANSWER

Mr Speaker, I would suggest that, thankfully for the Leader of the Opposition and the Shadow Treasurer, she gets to ask the questions and not answer them because I would like to pose a few little questions on just how much she’s knows about the negotiations with the GST.

In terms of an answer as to what Northern Territory taxes remain, clearly it’s early days to give an answer.

First of all, Territorians and Australians should be comforted by the fact that the Democrats, who have argued strongly for the removal of a GST on food, have obtained those concessions from the Federal government. So, in terms of the safety net that’s been provided for many Australians, Territorians can be comforted that those concessions have been made.

From the Coalition point of view, and the Northern Territory government’s point of view, 80% to 85% of the original GST package has been obtained. That’s good for Australia as we compete as a nation in a global economy in the 21st century.

The Treasurer and I have Treasury officials at this moment in Canberra negotiating with the Commonwealth on the fine details of the package that will be offered to the states and territories as a result of the concessions that have been given to the Democrats.

As I understand the situation at the moment, there has been about $3000m in extra costs to the states and territories because this is the money that came out of GST revenue and has gone into concessions to the Democrats. In return for that, the opening slate with the Commonwealth is they will provide $900 000m in increased revenue to the states and territories to compensate, but have sounded a warning that some states and territory taxes will remain.

That answer can’t be given by me at this stage. I can join with other premiers at the moment and call for a new inter-governmental agreement to be struck, that a new premiers’ conference be organised, and that may be the case at the end of the day. But I would at this stage leave it to the Treasury officials and see the details of the concessions and agreements that have been made and ascertain how they flow through to the Northern Territory government before I could give a definitive answer on that issue.

But what I can say is this. From a Territory Government point of view, we want all of our states’ and territories’ taxes to be removed as soon as possible. We want a clear guarantee from the Commonwealth that there is no detriment in terms of the budgetary arrangements and the revenue arrangements that flow from the Commonwealth as a result of these concessions. Sadly, from our point of view, the great benefits for the Northern Territory and for other states of Australia that result from these concessions appear to now flow through much more slowly than they would have under the initial agreement.

But, as I said, it is early days. We will watch the figures that come out from the Commonwealth, and if we don’t believe that there are satisfactory arrangements put in place, I will be one of the first to join in the call for a new inter-governmental agreement to be struck.