- The South Australian government released an updated budget showing a significant deterioration in revenue streams due to lower GST receipts from the Commonwealth and a $68.1 million write down in payroll tax revenues due to softer employment conditions.
- The budget update incorporates the $60 million committed to the government's "Our Jobs Plan" in response to Holden's announcement that it will close its Adelaide plant in 2017.
- The direct revenue loss from Holden's closure is estimated to be $14.2 million in 2016-17 and ongoing, while job losses are expected to be 1,500 in 2016 and 4,600 in 2017.
- The South Australian government released an updated budget showing a significant deterioration in revenue streams due to lower GST receipts from the Commonwealth and a $68.1 million write down in payroll tax revenues due to softer employment conditions.
- The budget update incorporates the $60 million committed to the government's "Our Jobs Plan" in response to Holden's announcement that it will close its Adelaide plant in 2017.
- The direct revenue loss from Holden's closure is estimated to be $14.2 million in 2016-17 and ongoing, while job losses are expected to be 1,500 in 2016 and 4,600 in 2017.
Original Description:
Budget update shows urgent response needed to Holden closure
- The South Australian government released an updated budget showing a significant deterioration in revenue streams due to lower GST receipts from the Commonwealth and a $68.1 million write down in payroll tax revenues due to softer employment conditions.
- The budget update incorporates the $60 million committed to the government's "Our Jobs Plan" in response to Holden's announcement that it will close its Adelaide plant in 2017.
- The direct revenue loss from Holden's closure is estimated to be $14.2 million in 2016-17 and ongoing, while job losses are expected to be 1,500 in 2016 and 4,600 in 2017.
- The South Australian government released an updated budget showing a significant deterioration in revenue streams due to lower GST receipts from the Commonwealth and a $68.1 million write down in payroll tax revenues due to softer employment conditions.
- The budget update incorporates the $60 million committed to the government's "Our Jobs Plan" in response to Holden's announcement that it will close its Adelaide plant in 2017.
- The direct revenue loss from Holden's closure is estimated to be $14.2 million in 2016-17 and ongoing, while job losses are expected to be 1,500 in 2016 and 4,600 in 2017.
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Premier Jay Weatherill Treasurer Minister for State Development Minister for the Public Sector Minister for
the Arts Wednesday, 22 January, 2014
Budget update shows urgent response needed to Holden closure
Following the release of Our Jobs Plan yesterday, Premier Jay Weatherill has today updated the States Budget position. The figures show a significant deterioration in the States GST receipts as was foreshadowed in the Commonwealths MYEFO on December 17. The update also shows the impact of Holdens announcement of its closure in 2017 on both the States revenue and predicted employment levels. The update incorporates the Governments spending on policy measures since the MYBR, including the $60m committed to Our Jobs Plan. Mr Weatherill said the impact on the States revenue streams as a result of the announcement Holden will close in 2017 is already apparent. Yesterday we launched Our Jobs Plan in response to Holdens closure, Mr Weatherill said. This Budget update clearly demonstrates the urgency needed in response to Holdens closure. We need to start this response now, both to make the further changes necessary to transform our economy and to maintain confidence. I again ask the Federal Government to properly consider Our Jobs Plan and support South Australias businesses, workers and their families. The Budget update shows: A $303m deterioration in GST receipts from the Commonwealth A $68.1m write down in payroll tax revenues largely due to softer employment conditions The revenue loss directly attributable to Holdens closure and its impact on economic conditions is $14.2m in 2016-17 and continuing thereafter Employment impacts of the Holden announcement expected to be 1500 jobs in 2016 and 4600 in 2017 Lower than expected economic forecasts including reductions in Gross State Product and employment of 0.25 per cent in 2015-16 and 2016-17 The effect of decisions made since the Mid-Year Budget review No capacity for additional expenditure without breaching fiscal targets
Mr Weatherill said the $376m revenue write down was mainly due to a fall in Commonwealth revenue and Holdens decision to close its Elizabeth plant. It is also very clear there is very little room for big spending initiatives, he said. The Opposition has already committed about $900m in new spending across the forward estimates before the commencement of the formal campaign. That is a massive commitment which will need to be offset with significant savings. Steven Marshall needs to come clean on what cuts he is going to make to provide for that expenditure.
