Presented by Robert Clark MP		www.robertclark.net

BRACKS CONTINUES HIGH TAXING, UNCONTROLLED SPENDING

News Release - Friday, 15th March, 2002

Victoria's 2001-02 Mid-Year Financial Report released today has revealed the Bracks Government has continued its high taxing and uncontrolled spending in the six months to December 2001.

Among the revenue increases - compared with the same period last year - are increases of:

• $27 million or 12% in taxes on insurance
• $46.8 million or 8.9% in motor vehicle taxes
• $37 million or 5.1% in gambling revenues.

Increases in spending compared with the same period last year include:

• $239.1 million or 24.3% in superannuation
• $553 million or 12.8% in employee entitlements
• $311.3 million or 8.9% in supplies, services and other expenses.

Shadow Treasurer, Robert Clark, said today's report confirmed the Government expected to exceed its original budget for operating expenses in 2001-02 by more than $700 million.

"If it were not for an almost $1 billion windfall increase in tax and other revenue, Victoria's budget would now be almost $200 million in deficit.

"The Government's boasted budget surplus is entirely dependent on this windfall revenue rather than sound financial management.

"It is profiteering from the hardship of community organisations and small businesses struggling to pay higher insurance premiums and from Victorian homebuyers who are paying the highest rate of stamp duty in Australia.

"Today's report highlights the importance of the warning sounded by the Auditor-General in his report on last year's finances that one of the challenges facing the Bracks Government is managing the impact of increasing expenditure pressures including wages growth."

Stamp duty on the purchase of a median-priced house in Melbourne has increased by 54% in the two years since the Bracks Government came to office (from September quarter 1999 to December quarter 2001) from $9,490 to $14,620, 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 huge windfall revenue gain from a strong property market, thanks to the Howard Government's low interest rates and First Home Owners Grant," Mr Clark said.

"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."