STATES DIG IN ON GST; NDIS FRAUD PROBE

States push case on GST carve-up

Future distributions of revenue sourced from the Goods and Services Tax will be an issue of contention when National Cabinet meets this week. Federal Treasurer Jim Chalmers said talks on December 1 with his state and territory counterparts on the carve-up of GST revenue was “productive” but would continue at National Cabinet. In particular, the states and territories are pressing on the ‘no-worse-off’ guarantee at the centre of GST distribution. Dr Chalmers said the cost to the Commonwealth of the GST no-worse-off guarantee had substantially increased since the original deal was put in place, and that any extension would have significant fiscal implications for the Federal Government. The future of GST distributions was debated in the context of fiscal pressures in the funding of health, hospitals and the National Disability Insurance Scheme.

Taskforce swoops on suspected NDIS fraud

Meanwhile, a taskforce established to investigate fraud in the National Disability Insurance Scheme (NDIS) has investigated more than 100 cases involving more than $1 billion of funding, in the taskforce’s first year of operation. NDIS Minister Bill Shorten said data from the Fraud Fusion Taskforce showed that at the end of October, $356.5 million in NDIS payments were under investigation, with 43 active fraud cases at an estimated fraud value of $35 million. Eighteen prosecutions were in progress, with an alleged fraud value of $18.3 million. A total 17,207 tip-offs were received in the last financial year, up 78 per cent on the previous year.

CPI indicator points to falling inflation

Annual inflation in Australia has dipped below the five per cent mark, according to the consumer price index indicator issued for October. The CPI indicator rose 4.9 per cent in the 12 months to October, compared to 5.6 per cent recorded in September, the Australian Bureau of Statistics reported. While some food staples such as meat, fruit and vegetables rose by less than two per cent over the 12 months, annual increases in electricity (10.1 per cent) gas (13.0) and automotive fuel (8.6 per cent) prices remained high. Housing and transport price increases also remained well over five per cent for the 12-month period.

AUKUS deal to step up space capability

Australia will collaborate with the United States and the United Kingdom to step up defence space capabilities, through the AUKUS partnership. Meeting in California with his US and UK defence counterparts, Deputy Prime Minister Richard Marles said a Deep-space Advanced Radar Capability site would be established near Exmouth, in north-west Western Australia. He said the capability would provide 24-hour continuous global and all-weather coverage to track and identify objects in deep space, boosting Australia’s ability to detect and deter space-based threats. The Australian site would integrate with other sites in the US and the UK.

National Reconstruction Fund open for business

Australia’s National Reconstruction Fund has officially started operations, with the release of an investment mandate that sets out expectations for investment in seven key priorities. Industry and Science Minister Ed Husic and Finance Minister Katy Gallagher said the $15 billion fund would direct investment into renewables and low emission technologies; medical science; transport, value-add in agriculture, forestry and fisheries; value-add in resources; defence capabilities, and enabling technologies. The fund would be required to operate on a commercial, self-sufficient basis, including due diligence on investment decisions. Under its mandate, the fund must target a rate of return of between two and three per cent above the five-year Australian Government bond rate over the medium to long term.

Parliamentary inquiry backs major reforms to employment services

A Federal parliamentary committee has called for sweeping reforms to government-backed employment services, claiming they were inefficient and fragmented and did not effectively serve jobseekers. The House of Representatives committee inquiry into Workforce Australia Employment Services said the current system was overly focused on supply (jobseekers) rather than demand (employers). It called for a major shakeup of mutual obligations requirements, which it said should move away from a one-size-fits-all approach. The committee's report said the current mutual obligations tied up the employment system in red tape, drove employers away and made people less employable.