The Shadow Treasurer Dr Steve Thomas says that the release of the Quarterly Financial Results Report for December has again highlighted the rivers of cash pouring into the McGowan Government coffers, thanks to the buoyant iron ore price and the Federal Government’s GST top up deal, rather than the Government’s purported “financial management”.
“These reports have now repeated the same theme since 2019” Dr Thomas said.
“That theme is one of higher expenditure being dwarfed by the ever higher income of iron ore royalties, domestic taxation and the extra GST being delivered by the Commonwealth.”
“The latest set of figures show that expenditure is up nearly $900 million on the same quarter last year, with most of the extra going into public service wages and operations.”
“However, this figure has once again been overshadowed by the increase in revenue, which is $2.7 billion higher than the same period last financial year.”
The extra revenue has come mainly from-
higher GST – up $1 billion,
higher iron ore royalties – up $464 million, and
higher local taxes – up $844 million
Dr Thomas said that this set of books is effectively a repeat of the last three years’ worth of releases, which in all cases saw the Premier claim the mantle of good financial management when in fact he is simply the lucky beneficiary of the current mining boom and the good GST deal.
“Spending keeps going up, but it can’t keep up with the revenue pouring in” Dr Thomas said.
“All the while the Premier is filling his fiscal money bin in a way that would even make Scrooge McDuck blush.”
“His embarrassment of riches is the result of worldwide economic stimulus pushing up iron ore prices.”
“Good luck is not the same as good management. The Premier should stop claiming credit and start giving thanks, because in the next few years the inevitable correction will occur, and if he keeps his current misleading messaging, he will have to start taking the blame.”