Pokies make other States easier targets for Howard Government's power grab

17/4/05 Premier Geoff Gallop said it was a gross distortion to compare Western Australia's tax regime with other States in the current debate over the Howard Government's power grab.

17/4/05
Premier Geoff Gallop said it was a gross distortion to compare Western Australia's tax regime with other States in the current debate over the Howard Government's power grab.
Dr Gallop said the proliferation of poker machines in other States and Territories had given them access to greater revenue streams.
"This is why it makes me extremely angry when John Howard and Peter Costello turn around and try to bully WA over business tax cuts," he said.
"They have breached the GST agreement and in turn want to penalise us millions of dollars.
"It is easier for the other States to bow to the Howard Government's threats because they have access to an affluent revenue stream that doesn't exist in WA.
"For example, only last week the Victorian Government reaped an extra $45million after increasing its poker machine levy.
"In order to protect our unique lifestyle and avoid the devastating social consequences, my Government has a policy of no pokies and I want to keep it that way.
"I call on the Federal Government to stop its strong arm tactics and compensate WA for our 'no pokies' policy to an adequate level."
Under the GST arrangement, this State receives only $2million in compensation for our low gambling revenues. Yet WA receives $1.19billion less than what Victoria receives in gambling revenue. On a per capita basis, WA clearly receives the lowest level of gambling revenue in the nation.
The following table shows how WA is at a clear financial disadvantage because of the gambling revenue issue.

GAMBLING REVENUE BY STATE
2003-04

$ million

$ per capita

NSW

1,311

195

VIC

1,324

268

QLD

726

189

WA

132

67

SA

379

248

TAS

79

165

ACT

50

155

NT

40

203

WA has abolished eight taxes since 2001. It also implemented $1.5billion dollars' worth of payroll, land and stamp duty tax cuts last year. There are further tax cuts planned.
Dr Gallop said it was up the States to decide what taxes they cut, not Peter Costello or John Howard.
"My Government is answerable to the people of WA and where possible we will cut taxes where we see fit. Mr Costello should be focussing his energies on income tax cuts," the Premier said.
Premier's office: 9222 9475