Dear Editor,

Interstate media attention to GST sharing has been revived over the last few months (particularly by the new NSW Premier) following WA’s announcement of a huge budget surplus. Some attempt at clarification of interstate angst might be useful.

Financial situation in the Northern Territory

Budget outcomes are obviously a consequence of how much revenue is collected, against how much money is spent. For many years now successive Northern Territory Governments have spent much more that was collected. Deficits have continued to grow into huge numbers, as has the level of money borrowed in order to continue the expenditure.

Serious analysis of expenditure decisions has resulted. How many columns in media have been devoted to the Darwin Turf Club grandstand for example, or the ever growing public service, or the disproportionate number of senior executives?

But not so much attention has been paid to the NT’s declining revenue, the story of how our share of the goods and services tax has been gutted. I hope to shed some light on that here.

A win/win for Western Australia

The Western Australian Government announced a record $5.6 billion surplus. Windfall iron ore royalties of around $11.3 billion, and a windfall GST share of $5.4 billion have contributed. I say windfall in relation to the GST, as this is about $2.1 billion additional because of changes to the methodology made by the then Treasurer (now Prime Minister) in 2018.

Australia had become the envy of the world in the way our Commonwealth Grants Commission had devised a methodology of distributing revenue to the states on a needs adjusted basis. WA received a lower per capita figure because of its huge iron ore royalties. When royalty receipts dropped WA successfully lobbied the Treasurer to change the GST methodology. Now, when royalties have again soared, the prime minister allegedly said this week that he had no intention of revisiting the earlier decision.

Most of WA’s GST gain comes from the NT.

Our inherited massive infrastructure deficit

At self-government the Commonwealth threw the fledgling NT Government a dump pass in terms of the infrastructure deficit in the bush – roads, bridges, water supplies, housing, pre-schools, schools, residential schools, teacher housing, health clinics, morgues, airstrips and so on.

Some of us have eyed other sources of Commonwealth outlays to address this deficit. But in recent times those sources have been allocated to other activities, none of which help us. I have in mind projects like sports grants, drive and ride carparks, and the Community Development Fund (all adversely reviewed by the Auditor-General).

I have read that these outlays now total in the order of $8 to $10 billion. More recently still we have watched billions transferred to wealthy companies under the guise of the JobKeeper program to keep, while struggling individuals are pursued for alleged Robodebts.

Our own government’s priorities, the Commonwealth’s changes to the GST methodology, and the Auditor-General’s criticisms of the Commonwealth’s massive expenditure programs, erodes my hope for the future.

Will our infrastructure deficit in the bush ever be addressed?

Bob Beadman