Tasmania’s budget has been boosted by the growing Tasmanian economy, with an almost $150 million increase in receipts from conveyance duty and land tax, according to the Revised Estimates Report released today.
The increase in both conveyance duty and land tax are a direct result of more property transactions, and increased property values which is reflective of the stronger and more confident Tasmanian economy.
This is very good news, and demonstrates that it is not necessary to increase taxes to raise revenues – rather, strong economic management will lead to increased revenues as the economy grows.
While still highly volatile, Tasmania’s forecast GST share has also increased by $127.4 million across the forward estimates, reflecting an increase in Tasmania’s forecast of the national population, and revised forecasts of States’ own-source revenue.
The RER also shows that the Government has maintained spending discipline, with a compound annual spending growth rate of 1.3 per cent, below the compound annual revenue growth rate of 1.8 per cent.
As a result, after delivering a surplus last year, the budget is now forecast to be in surplus for at least the next four years, meaning we can continue to afford to pay for essential services like health, education, and supporting our most vulnerable.
However, spending discipline remains critical.
As recent years have demonstrated, forecast GST increases can just as quickly disappear, so it’s essential that we plan carefully and don’t spend today money that may no longer exist tomorrow.
KEY FACTS
· Forecast surplus this year of $47.7 million
· Budget now forecast to be in surplus for five consecutive years
· State-source revenue up $148.3 million
· GST up $127.4 million
· Compound annual rate of spending growth – 1.3 per cent
· Compound annual rate of revenue growth – 1.8 per cent
· All fiscal strategy actions are being met
· The unemployment rate estimate has improved to 6.5 percent from a forecast 6.75 percent
· The largest single spending measure since the budget was handed down was $29.5 million for last year’s devastating flood event.
The full Revised Estimates Report is available www.treasury.tas.gov.au