VIC:GST cut to cost Vic health system $700m

AAP General News (Australia)
04-01-2011
VIC:GST cut to cost Vic health system $700m

MELBOURNE, April 1 AAP - About $700 million will be ripped out of Victoria's health
system over the next four years if the flagged cuts to the state's GST revenue go ahead,
the state government says.

The Commonwealth Grants Commission recommended last month the government slash Victoria's
GST funding by $500 million in the 2011/12 financial year.

This equates to $2.5 billion over the next four years, or $88 a year for each Victorian.

The Victorian government is lobbying the commonwealth to delay any decision on the
recommended cut until after a review of how the tax is carved up between the states.

Health Minister David Davis said the slated cut would have a dramatic impact on the
state's health system.

Up to 30 per cent of Victoria's budget is dedicated to health, he said.

"Somewhere between $675 million and north of $700 million is the amount that will be
taken out of health spending," he told reporters on Friday.

AAP mj/ees/dep

KEYWORD: TAX VIC HEALTH

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