Federal Education Funding and GST Carve Up!

Mr Damage

NSW will receive $14.5 BILLION in federal government education funding... while WA will receive... wait for it... $300 million over the same period:

http://bigpondnews.com/articles/TopStor ... RSS_230413

So NSW has 3.5x the population of WA, but will receive nearly 50x the education funding!

Also, when the GST was implemented it was decreed that the states would receive back all the GST they paid to the federal government… but currently WA receives back only 55% of what it contributes… and as of the upcoming financial year WA will receive less than 50% of what it contributes!... while NSW, QLD and Tasmania will receive between 120 and 130%!!!

SO who here in WA still wants to vote for this government in the upcoming election?

We already pay more than our fair share, but they aren’t content with that… they want to bend us over… and not even have the common decency to use a prophylactic!

Anytime you all wanna get together and start digging the moat down the state border… I’m there!... I’ll give you a coupla weeks operating a digger for free!

RupertofOZ

Mr Damage wrote:

NSW will receive $14.5 BILLION in federal government education funding... while WA will receive... wait for it... $300 million over the same period:

http://bigpondnews.com/articles/TopStor ... RSS_230413

Take off your blue tinted glasses Dr Damage... and re-read the article you link to....

NSW WILL NOT receive $14.5 billion dollars... under the Gonski deal... the $14.5 billion dollars is the total.. to be allocated across the states and territories...

Quote:

Federal Labor has given the states and territories until June 30 to agree to a two-for-one funding arrangement that would deliver $14.5 billion in funding for schools.

NSW will in fact receive.... $5 billion.... with NSW putting up 1/3.... (about $1.7 billion)...and the other 2/3 from the Federal Government under the 2:1 proposal....

Quote:

Overall, NSW schools will get $5 billion over six years, including $3.27 billion from the commonwealth.

Quote:

So NSW has 3.5x the population of WA, but will receive nearly 50x the education funding!

So comparatively... per capita... if WA is about 1/4 the population.... $300-400 billion is there per capita allocation...

If Colin Barnett were to sign on to the Gonski deal.... as all the rest of the States will do in the coming months....

The Federal Government would add another $600-800 billion to the WA pot.... or around a total of $900 - $1.2 billion...

So blame your esteemed Premier.... :lol:

Quote:

Also, when the GST was implemented it was decreed that the states would receive back all the GST they paid to the federal government… but currently WA receives back only 55% of what it contributes… and as of the upcoming financial year WA will receive less than 50% of what it contributes!... while NSW, QLD and Tasmania will receive between 120 and 130%!!!

We already pay more than our fair share, but they aren’t content with that… they want to bend us over… and not even have the common decency to use a prophylactic!

What do you mean... "we already pay more than our fair share".... the GST is not money paid by the WA government or the WA voters...

While the GST distribution has a "per capita" under-pinning... it is based upon the principle of "horizontal fiscal equalisation (HFE)".... introduced in 1933....

And formed the basis of the GST implementation model... by John Howard... (remember him)...

Horizontal fiscal equalisation ... is based on the concept that each State, or Territory... should have the same equal fiscal capacity to provide the services needed for it's population (per capita)....

The ability to achieve equal fiscal capacity varies from state to state over time... depending on their fiscal ability to raise the necessary revenue...

Some states, due to geographical location, population, natural resources etc.... have...

From Wiki...

Quote:

a lower capacity to raise revenue. Many federations use fiscal equalisation to reduce the inequalities in the fiscal capacities of sub-national governments arising from the differences in their geography, demography, natural endowments and economies However the level of equalisation sought varies. In Australia, the objective is full equalisation.

Full equalisation means that, after HFE, each of the six States, the Australian Capital Territory and the Northern Territory (the States) would have the capacity to provide services and the associated infrastructure at the same standard, if each State made the same effort to raise revenue from its own sources and operated at the same level of efficiency.

Currently the funds distributed to achieve HFE are the revenues raised from the Goods and Services Tax (GST), currently about AUD50bn a year. The distribution of GST required to achieve HFE is decided by the Federal Treasurer each year, on the basis of advice provided by the Commonwealth Grants Commission (CGC).

Achieving HFE does not mean that the States are directed how to raise revenue or how to spend their funds. GST revenue grants from the Commonwealth are untied and available for any purpose. Accordingly, HFE equalises fiscal capacity, not fiscal policies which remain for the States to decide for themselves. It does not result in the same level of services or taxes in all States, direct that the States must achieve any specified level of service in any area, nor impose actual budget outcomes in accordance with the Commission's calculations

Please note... the GST allocation is reviewed yearly.... irrespective of political party in government...

To put it simply.... those states which have a greater ability.. from whatever means... to achieve the " capacity to provide services and the associated infrastructure "... for it's states population....

Receive a lower proportion of GST revenues...

States, or Territories that don't have the same fiscal capacity.... receive a larger share...

One of the things that increases a States ability to service it's infrastructure & service needs....

Is the ability to tax.. or levy.... to raise the income required.... thus providing the State with a greater ability to "self fund"....

For instance...significantly increasing the revenue from mining royalties.... would lead to a decrease in GST revenue under the HFE.... :wink:

So if you want to blame anyone for WA getting a lower share of the GST... blame Colin Barnett....

RupertofOZ

To summarise... you should blame Colin Barnett for.... not maximising the Federal Governments...

School Funding Allocation.... and GST Revenue Distribution....

And them's the facts Jack...

So by all means Dr. Damage.... dig a moat.. then fill it by throwing Colin Barnett in it... and WA would be better off...

arbe

Mr Damage wrote:

Anytime you all wanna get together and start digging the moat down the state border… I’m there!... I’ll give you a coupla weeks operating a digger for free!

Are we starting from the north or south Mr Damage?

EAGLEYE

Start from the south . It's got more rocks so we can use the digger too.

Sent from my HTC Explorer A310b using Tapatalk 2

arbe

Do you think we could incorporate AP into the design of this moat?

werdna

The WA government will spend $4.1bn on education in the 2013 year.
So you expect them to sign onto a deal authorising the federal government to take part control in education for an extra 7%?
Get real.

NSW are all for it, they get 2/3rd of their funding covered.
And their education system is a joke.

Quote:

While the review generally recommends measures such as early support for disadvantaged and underperforming kids, it doesn't go into detail on the best methods. It was not asked to choose between reading immersion and phonics, measure the success of principal autonomy, or review the results of previous injections of cash.

If it had, it might have reviewed the NSW government's response to the Vinson report. The money was spent on some of the same things argued for in the Gonski report, including specialist literacy and numeracy teachers and raising standards of the teaching profession. NSW committed to a lot of excellent measures but quickly found it had run out of cash due largely to one single item: smaller classes.

This caused three poor outcomes for education. Most obviously, if you split a class of 30 into two groups of no more than 22, you need a lot more teachers, resulting in massive salary cost increases. Second, you need a second classroom. Kids in NSW found themselves with less and less room to run as demountable classrooms annexed their cherished playgrounds.

Finally, to meet the sudden requirement for large numbers of additional teachers, entrance standards slipped. Last year's Good Universities Guide notes that the entry to teacher training can be gained with an Australian Tertiary Admission Rank as low as 46.5. Despite hundreds of millions a year in extra funding, NSW education ran out of money so fast that unbudgeted enhancements had to be made just to get primary school toilets fixed. Which might have been worth it if kids were getting better results. But as Boston notes, they are not.

Unless we urgently begin complementing the money debate with a policy debate, the new money will be misallocated as surely as was the old. As we urge the nation's kids to apply themselves to more rigorous study, we would do well to set a better example ourselves.

As viewed here http://www.theaustralian.com.au/national-affairs/opinion/policy-debate-worth-millions/story-e6frgd0x-1226626215217

RupertofOZ

werdna wrote:

The WA government will spend $4.1bn on education in the 2013 year.
So you expect them to sign onto a deal authorising the federal government to take part control in education for an extra 7%?
Get real.

NSW are all for it, they get 2/3rd of their funding covered.
And their education system is a joke.

Can't read more than the introduction in the link provided...

But where do you get the 7% from.... the government offer is pretty clear and unambiguous I would have thought.....

The government is committing to match $2 to every $1 of state money... :dontknow:

Sleepe

Look, just because the ES are useless, what good would digging a moat be?
It would be downright embarrassing having them as neighbours and we would end up sending them aid anyway.

Journeyman

The Federal Govt is committing to match $2 for every extra, on top of what is already being spent $1 the States put up, and for that it also gets to say how things will be spent. It's a de facto takeover bid as well as a lifebouy in the troubled waters of Labour's sinking election prospects.

They hope the sheeple out there will just see how Julia wants to give all their kids a lot of money for schooling.

*grins* @Sleepe - perhaps make the moat a bit deeper so you can get some distance between you and the ES'ers? Let me know though - I wouldn't mind coming back there to live once the rest of Australia becomes the Eastern Island...

Mr Damage

Quote:

Take off your blue tinted glasses Dr Damage... and re-read the article you link to....

NSW WILL NOT receive $14.5 billion dollars... under the Gonski deal... the $14.5 billion dollars is the total.. to be allocated across the states and territories...

You got me, in all honesty I didn’t even read the article… just before going to bed I was watching the late news on the telly in which they stated that NSW had signed after JuLiar sweetened the deal by offering an extra $5b on top of the $9b previously offered to NSW… this is what the tv news stated, on two channels… I then went and googled “NSW federal education funding” and this was one of the articles that popped up… I saw the article heading “NSW schools agreement”… and coz I was fixing on getting to bed a.s.a.p. I quickly scanned through the text and saw “$14.5 billion” and thought “that’ll do” and pasted the link.

Another article that popped up at the time, by ABC News, had the opening paragraph:

Quote:

NSW is the first state to agree to the Federal Government's education plan and in return for pitching in two billion dollars will receive an EXTRA five billion dollars in federal funding for the state's schools.

http://www.abc.net.au/news/2013-04-23/nsw-signs-up-for-education-funding/4647566?section=act

While looking for the articles I read last night, I found this one below… why would Collin Barnett sign a deal that sees WA receive a total of $183m over six years?

Quote:

"Sue Ellery needs to look at the facts," he said.
"The facts are that this government has increased spending dramatically on education.
"The education budget has increased from $3.6 billion in 2009-2010 to $4.1 billion in 2012-2013 - an average of six per cent a year.
"Further, it should be noted that the Commonwealth's schools offer is not an extra $300 million for Western Australia - it is $183 million over six years. WA has to find the rest."

http://www.abc.net.au/news/2013-04-21/f ... section=wa

So WA has spent about $12b on education over the last three years... and the feds are offering to contribute $183m over the next 3 years???... this federal Labor government has done nothing but shaft our state… we are the Golden Goose that gets constantly beaten but is expected to still produce the golden eggs and receive f-all in return!

Also… have you heard how the NSW premier plans to raise his states contribution to the scheme?... The first thing they have stated is that that they will be increasing TAFE fees to help raise the funds required for education????

Quote:

Are we starting from the north or south Mr Damage?

Being the start of winter Arbe, I think we should start at the top and plan on reaching the bite in Summer… sound like a plan?... Kununurra is great this time of year… bring your fishing rod!

Quote:

The Federal Govt is committing to match $2 for every extra, on top of what is already being spent $1 the States put up, and for that it also gets to say how things will be spent. It's a de facto takeover bid as well as a lifebouy in the troubled waters of Labour's sinking election prospects.

YEP!...

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Federal Education Funding and GST Carve Up!

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