States GST coffers get smoking boost

Australia's smokers are about to add some puff to the GST pool available to the states.

Smokers will pay more for cigarettes.

The states and territories are looking at a GST pool of $60.7 billion, partly thanks to smokers. (AAP) Source: AAP





The federal government's plan to whack four annual increases of 12.5 per cent on the tobacco excise from September 2017 will help lift their entitlements by more than $700 million over those years.

The other change supporting GST proceeds is the application of the consumption tax to all goods bought online from overseas from 2017.

But overall, the states and territories are looking at a total GST pool of $60.7 billion in 2016/17, budget papers released on Tuesday show.

The nation's most populous state of NSW will again get the lion's share - or $17.6 billion - and ACT the least - or $1.2 billion.

Western Australia, which is coming off a long run mining boom and has large budget deficit, is in line for $2 billion.


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Source: AAP



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