Baird says NSW needs greater GST share

The NSW Government will not be able to deliver key services in the future if it doesn’t get a fairer share of the national GST revenue, state Treasurer Mike Baird says.

The interim report of the independent GST Distribution Review was released on Wednesday by Federal Treasurer Wayne Swan.

The review is considering whether tax distribution arrangements can be improved in light of the structural changes reshaping the Australian economy.

Mr Baird expressed caution at the release of the review and reinforced the NSW government’s desire to secure a greater revenue stream for NSW.

“The NSW government firmly believes that a per capita distribution of GST remains the best way of correcting the current GST imbalance,” Mr Baird said in a statement.

Mr Swan warned the states that the federal government would act to protect the broader economy when considering its review of the distribution of GST revenues.

But Mr Baird claims NSW will receive $750 million less than it should based on population in 2012-2013.

“An increase in state sharing of the Commonwealth growth taxes will be an important part of any tax reform process,” he said.

“The states cannot continue to deliver the services they are responsible for without access to a fairer share of the national tax base.”

He also questioned the integrity of the independent review, claiming the federal government changed its terms of reference midway through.

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