Macrobusiness Chief Economist explains how states are fighting for ‘revenue pie’ with GST

Macrobusiness Chief Economist Leith van Onselen joined Sky News host Erin Molan to discuss how the GST split up has resulted in the Australian states fighting for a slice of the “revenue pie”.

This follows Western Australia receiving $6.2 billion more GST, triggering $5.2 billion in payments to other states to ensure they are no worse off, while Victoria’s GST revenue will soar by $3.7 billion.

“Basically the states get the GST, you think, well, they get 10 per cent of all expenditure,” he said.

“The problem is, the fastest growing areas of household expenditure are actually things excluded from the GST.

“So you think things like healthcare, private school fees, fresh food – those things all grow faster than wages generally.”

Видео Macrobusiness Chief Economist explains how states are fighting for ‘revenue pie’ with GST канала Sky News Australia