NSW Labor Premier Chris Minns has demanded more GST revenue from Prime Minister Anthony Albanese, arguing it is desperately needed to fund infrastructure required for the state’s ballooning population.
Minns told 7 News that the federal government benefits economically from the record migrant intake, but we (NSW) also shoulder the burden of accommodating that growth.
This is especially the case for housing where demand is far outstripping supply.
“You can’t keep adding another street to the Western fringe of Sydney every other week”, Premier Chris Minns said.
“The pockets and the taxpayer money of the people in this state can only stretch so far. And big infrastructure projects are going to need federal government help”.
The never-ending GST quarrel is symptomatic of a larger issue afflicting the federation: ingrained vertical fiscal imbalance.
Because the Commonwealth collects over 80% of total tax revenue in Australia, the states are always dangerously short of funding for health, other important services, and infrastructure.
This budget gap is exacerbated further by the current federal government’s record immigration program, which constantly increases demand for government services and infrastructure.
The federal government gains the financial windfall from mass immigration, via increased personal and company tax receipts.
However, the states and local governments are left picking up the cost by having to provide the additional infrastructure and services for the larger population.
I bet if the federal government was forced to share the cost of mass immigration with the states, it would reconsider running the largest immigration program in Australia’s history.
