Funding the abolition of state taxes

Abolition of taxes

All GST is paid to the States and Territories, giving them a secure and growing revenue base. The States and Territories agreed to abolish a range of inefficient taxes in return for receiving the GST. Taxes already abolished under the IGA are financial institutions duty, listed marketable securities duty, accommodation tax and debits tax.

There is now an agreed schedule with all States and Territories to abolish IGA taxes.

These taxes are mortgage duty, cheque duty, lease duty, rental duty, unlisted marketable securities duty and non‑real non‑residential conveyance duty.

This will save taxpayers $4.4 billion over the next four years.

The Australian government will continue to pursue the abolition of stamp duty on business conveyances of real property. This is the last remaining tax listed for review under the IGA.

GST windfalls

In 2006‑07, the States and Territories are estimated to receive $1.9 billion more than if tax reform had not taken place.

• $160 million more for NSW
• $298 million more for VIC
• $665 million more for QLD
• $270 million more for WA
• $193 million more for SA
• $102 million more for TAS
• $61 million more for ACT
• $123 million more for NT