Presented by Robert Clark MP		www.robertclark.net

SPENDTHRIFT GOVERNMENT CONTINUES TO SLUG VICTORIANS

News Release - Tuesday, 15th January, 2002

Victoria's budget update released today shows that the Bracks Government has continued to collect and spend ever increasing amounts of revenue at the expense of Victorian taxpayers.

On the latest figures, the Bracks Government is collecting almost $1 billion more in tax and other revenue and spending over $700 million more in operating expenses than budgeted in last May's 2001-02 State budget.

The bulk of the increased tax burden has fallen on Victorian homebuyers and other property purchasers, with a $750 million, or 59%, leap in revenue forecast to be received this financial year from stamp duty on land transfers and mortgages, compared with the May budget estimate.

Stamp duty on the purchase of a median priced house in Melbourne has increased by 52% in the two years since the Bracks Government came to office (from September quarter 1999 to September quarter 2001) from $9,490 to $14,440, as rising prices have pushed properties into higher stamp duty brackets.

"This is shaping to be the third financial year in a row in which the Bracks Government has received a windfall revenue gain from a strong property market, thanks to the Howard Government's low interest rates and First Home Owners Grant," the Shadow Treasurer, Robert Clark, said.

"The Government cannot continue to build its budgets on ripping off ordinary Victorian homebuyers.

"It should be looking to return some of that windfall gain through stamp duty relief in the State budget due later this year.

"So far, the Bracks Government is proposing to give only $112 million of so-called tax cuts in 2002-03, compared with an ongoing tax level more than $1.7 billion higher than when it came to office.

"The Government must learn to live within its means, rather than spending its revenue gains on increasing expenditure at an unsustainable rate, and dragging down the Victorian economy in the process.

Mr Clark said that in just two years the Bracks Government had increased spending from $20.9 billion in 1999-2000 to an estimated $23.7 billion in 2001-02, a 13.3% increase, well above the State's economic growth rate. A large part of the increase appears to be due directly or indirectly to new industrial agreements with public sector unions.

Mr Clark expressed concern that Victoria's economic growth had slipped over the past two years compared with other States.

"Our economic growth for 2001-02 remains forecast at 2.75%, compared with the national forecast growth rate of 3.0%.

"The Bracks Government should also use some of its surplus to give a payroll tax reduction which will help restore confidence and increase the attractiveness of Victoria as a place in which to invest and create jobs."