Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Local government tax sharing



Download PDFDownload PDF

NO. 59

TREASURER

EMBARGO

STATEMENT BY THE TREASURER, THE HON JOHN HOWARD, MP AND . THE HON WAL FIFE, MP, .MINISTER ASSISTING THE PRIME MINISTER IN FEDERAL AFFAIRS. · ■ ...··.·

LOCAL GOVERNMENT TAX SHARING r

The Commonwealth Government will increase the personal income tax sharing entitlement for local government from the present level of 1.52 per cent to 1.75 per cent.

This is the first and a significant step towards fulfilling .the Prime Minister's 1977 Election Policy Speech promise that the local government share of personal income tax revenue

would be increased to 2 per cent during the lifetime of the present Parliament.

Revenue sharing of personal income tax collections between

the Commonwealth, the States and local government is a

central element in the Government's federalism policy.

Access to an untied percentage share of personal income tax revenue for local government - which was introduced by the

Fraser Government - was a major reform and provides local

government with greater financial security and flexibility.

As a consequence of the Government's decision, payments for local government under the tax sharing arrangements are

now expected to increase by 22 per cent in 1979/80 to a total of about $219 million - an increase of $40 million over 1978/79. '

2

Notwithstanding difficult budgetary circumstances, Commonwealth

assistance to local government by way of tax sharing has been very generous and of great help to local government. It is

expected that Commonwealth general revenue assistance will be 174 per cent greater in 1979/80 than before the

introduction of the tax sharing arrangements in 1976/77.

It should be emphasised that this general purpose assistance provided by the Commonwealth comprises only part of the

total Commonwealth assistance to local government. In addition the Commonwealth provides through the States or direct to . local government, authorities financial assistance under a. number of other programs the most important of which is for road.

CANBERRA

28 June 1979