Table C.17 Change in GST payments of raising revenue by $100 201617, dollars Source: Productivity Commission estimates based on CGC (2018h) data. Average rate effects also occur for changes in expenditure. These changes affect the States’ average levels of expenditure across States, leading to changes in each assessed State’s expenses and consequently its GST payments. As with revenue rate effects, expenditure rate effects presented below are given by the change in GST payments resulting from a $100 reduction in expenditure. These effects are presented in table C.18. They are generally smaller than revenue rate effects and in most cases less than $1. Table C.18 Change in GST payments of reducing expenses by $100 201617, dollars Source: Productivity Commission estimates based on CGC (2018h) data. C.4 Cameos The cameos presented here are used to illustrate how a change to a tax policy can State’s influence its GST payments and its incentives to carry out a given reform. These include scenarios where only one State changes its tax policy (unilateral reforms), and when all States collectively change their tax policy (multilateral reforms). Three cameos are presented here: A revenue-neutral reform in which a State halves its stamp duty and introduces a broadbased land tax.
Table C.17 Change in GST payments of raising revenue by $100 201617, dollars Source: Productivity Commission estimates based on CGC (2018h) data. Average rate effects also occur for changes in States’ expenditure. These changes affect the average levels of expenditure across States, leading to changes in each State’s assessed expenses and consequently its GST payments. As with revenue rate effects, expenditure rate effects presented below are given by the change in GST payments resulting from a $100 reduction in expenditure. These effects are presented in table C.18. They are generally smaller than revenue rate effects and in most cases less than $1. Table C.18 Change in GST payments of reducing expenses by $100 201617, dollars Source: Productivity Commission estimates based on CGC (2018h) data. C.4 Cameos The cameos presented here are used to illustrate how a change to a State’s tax policy can influence its GST payments and its incentives to carry out a given reform. These include scenarios where only one State changes its tax policy (unilateral reforms), and when all States collectively change their tax policy (multilateral reforms). Three cameos are presented here: A revenue-neutral reform in which a State halves its stamp duty and introduces a broadbased land tax.
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