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A fairer share of GST will help the NSW Government to invest earlier in people and communities, rather than waiting until families are already in crisis said the NSW Council of Social Service (NCOSS).
The Productivity Commission’s public hearings on the 2018 GST changes begin today, and NCOSS will appear alongside the Australian Council of Social Service (ACOSS) this week.
NCOSS said the debate about GST distribution boils down to whether every state can fund provide the services people rely on every day, and right now the shares do not follow need.
Councils of Social Service (COSS) across Australia have argued that every state and territory should have the financial capacity to provide a comparable standard of essential services, taking into account differences in revenue and costs.
The joint COSS submission warns that unfair distribution of national resources can deepen poverty and disadvantage and argues the GST system should help ensure people can access quality services regardless of where they live.
NCOSS believes the GST share should be based on need, so people can rely on the same standard of support wherever they live. The interim report found the 2018 changes made the system less equitable, less consistent and more complex
NCOSS CEO Cara Varian said stronger state finances should lead to stronger services, particularly during tough times.
“Community services see what happens when people are unable to access early intervention. It means someone struggling to pay rent finds themselves homeless, a family under pressure can reach crisis or a person needing mental health intervention ends up needing more intensive care.
“We should be putting our energy into preventing crisis wherever we can, rather than continually paying more to respond once people have reached breaking point.”
“When the No Worse Off Guarantee ends in 2029-30, NSW loses support worth about $1.5 billion a year. We know where cuts of that size land first, services for people experiencing homelessness, domestic and family violence support, and the neighbourhood centres that hold communities together.”
The COSS submission also calls for transparency about how states and territories use funding to support people experiencing poverty and disadvantage, so communities can see whether additional resources are reaching the people who need them most.
“We support a fairer share for NSW, but the real test is what happens next,” Ms Varian said.
“If NSW has more capacity to invest, we want to see that translate into practical support in communities; early intervention and prevention, fewer people falling through the cracks and less pressure on crisis services.
“A fairer GST should not just be about balancing budgets between governments. It should help build a fairer NSW.”
NCOSS is a signatory to a joint Councils of Social Service submission to the Productivity Commission inquiry. The submission represents thousands of organisations working across housing and homelessness, family and children’s services, mental health, domestic and family violence, community legal services and other areas of social support.