MYTH: NSW SHARE OF GST REVENUE IS DOWN BY $5.4 Billion

There's been a lot of talk by Barry O'Farrell and Adrian Piccoli about falling GST revenue. They are using this as justification for the $1.7B cuts to education.

Attached is a fact sheet which busts the myth.

MYTH: GST REVENUE IS DOWN BY $5.4bn

‘‘We face a massive drop in [GST] revenue from the federal government,’’
– Mike Baird (Daily Telegraph, 2 May 2012)
 
"State revenues are already under intense pressure due to a massive drop in GST revenue,"
– Mike Baird (The Australian, 7 May 2012)

 
FACT: GST REVENUE IS INCREASING BY $8.3bn

The amount of GST revenue received by the NSW Government is increasing steadily over the next four years. Over the next four years the amount of GST revenue received by the state is up $358 million this year and will increase by $8.3 billion over the next four years. This is an average increase in GST revenue of 4% per annum.

Mike Baird is being tricky with the truth. His last Budget included an unrealistic 9% increase in GST revenue for 2011/12. The Treasurer is now trying to cry poor to avoid being caught out over-inflating forecast budget revenue figures.