South Australia has taken a $1.3 billion GST hit from the federal budget with Treasurer Rob Lucas warning the write-down in revenue presents further challenges to the state’s already stretched finances.
The GST fall for 2020/21 is even bigger than that forecast by the state government in its June economic update.
“While not unexpected, this massive GST write-down obviously presents further challenges as we prepare to deliver our own budget next month,” Mr Lucas said.
“Compared with estimates in our first budget GST revenue has declined by almost $5.2 billion over the four years to 2021/22.
“Such a significant reduction in forecast revenues, together with all the other impacts of the global COVID-19 pandemic, clearly puts further pressure on the state budget.”
But the treasurer says the state government remains committed to doing everything it can to save as many jobs as possible, even if it means significant increases in the deficit and state debt.
He has also welcomed wage subsidies outlined in the federal budget, the fast-tracking of income tax cuts and the supplementary payments for pensioners.
“This is a significant jobs budget that will go a long way in helping more South Australians get back into work,” Mr Lucas said.
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