South Australians worse off if tax cuts pass

2018-06-18

South Australia is set to lose $554 million in funding for essential services if the Turnbull Government’s income tax cuts pass the Senate this week.

Greens’ analysis of Government and Productivity Commission figures show South Australians and Tasmanians will be the biggest losers to essential services funding under income tax cuts.

“For every dollar South Australians get back in income tax cuts, we will lose $1.40 in cuts to essential services like hospitals, schools, TAFEs and universities and the social safety net,” Greens finance spokesperson Senator Sarah Hanson-Young said.

“Cuts to taxes are cuts to services, worth more than half a billion to South Australia. The Government pays for Medicare, hospitals, schools and childcare with tax revenue. You don’t collect the tax, you can’t afford the services.

“With South Australia’s ageing population, we need funding to our health services. South Australians deserve to know that when they get sick or have an accident, there is going to be someone to treat them at the emergency department.

“The bulk of these tax cuts benefit wealthy Australians while those who rely on our essential services get very little out of this deal. These tax cuts are poorly targeted.

“For South Australia it means longer waiting times at hospitals, more students crammed into classrooms and more expensive childcare. Tax cuts leave us unable to afford domestic violence crisis centres, fee-free university or a world-class NBN.

 “The passage of these tax cuts will rely heavily on the South Australian senators on the cross bench. If SA Senators want to stand up for their state, they will say no to these tax cuts.”

 

How much will it gain in income tax cuts, per year?

How much will it lose in essential services cuts, per year?

Net benefit per year (income tax cuts minus essential services cuts)

Dollars cut from services per $100 gained in income tax cuts

NSW

$8,448m

$7,969m

$478m

$94

VIC

$6,002m

$6,143m

-$142m

$102

QLD

$4,404m

$4,977m

-$573m

$113

WA

$3,187m

$2,335m

$851m

$73

SA

$1,374m

$1,928m

-$554m

$140

TAS

$362m

$613m

-$250m

$169

ACT

$571m

$358m

$214m

$63

NT

$253m

$278m

-$25m

$110