Commonwealth funding cuts force states to raise their own taxes
Commonwealth funding for state projects dropped from 80 per cent to half, forcing states to cut essential services.
ACT Treasurer Chris Steel says the Commonwealth is squeezing state budgets by cutting its share of project funding in half. Money once covered 80 per cent of costs; now it covers half.
States are forced to pull revenue from schools and healthcare to make up the difference. Steel argues states cannot fix this alone, they need the Commonwealth to support tax reform rather than block it with conditions.
The ACT has replaced stamp duty with land rates; Steel says other states should be free to pursue similar reforms without penalty. The transition to electric vehicles would weaken fuel-excise revenue, threatening road funding.
Steel predicts the Commonwealth will not introduce light-vehicle road user charges this decade, leaving a long-term gap. Real partnership and proper funding shares are needed, he says, for a stronger federation.
- 80 per cent to 50 per cent
- Funding share shift
- Chris Steel, ACT Treasurer
- Speaker
- Schools and hospitals
- Services affected
Why it mattersState budgets set funding for schools, hospitals and roads, cost shifts determine what services your community can afford.
AustraliaAll Australian states face this pressure; federal-state funding deals will shape public services, education and healthcare budgets nationwide.
✓ Claims checked against the source and corrected before publish. checked 9 h ago
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