It was to be their very own tax that would grow with the economy. They could use that revenue to fund their responsibility to provide hospitals, schools, aged care, and housing, to name but a few.

But it turns out that the GST isn’t a growth tax.

GST revenue has grown slower than the economy and certainly slower than the cost of the services that they need to supply.

The ACT government needs to efficiently manage all the money it spends.

It needs to be striving to make the most of what it has. But that goal is being used as an excuse to accept that vital parts of government are underfunded.

Efficiencies are not going to solve the chronic shortage of public housing. They are not going to solve long hospital waiting lists.

We need to accept that the ACT government, as well as all the other state governments are lacking the revenue to do anything but fiddle at the edges of some of our biggest issues.

Fortunately, Australia is a wealthy, low-tax country and there are plenty of ways we can raise additional revenue.

The Greens’ recent proposal to increase the top rate of payroll tax is a great example of how more revenue can be raised from those who can most afford it.

The Greens propose increasing payroll tax on companies with total payrolls of more than $200 million by 3 per cent. This would raise an additional $107 million each year.

Payroll tax is the tax companies pay based on their total payroll. This change would not affect how much tax individuals pay.

The $200 million threshold means that only a handful of businesses would be impacted. These would include the big four banks, airlines, supermarkets and national retail chains.

Importantly, these are the businesses that have been making super profits over the past few years.

Payroll tax is an important part of any state or territory’s ability to raise revenue.

Unfortunately, the ACT has been hamstrung by the fact that federal government is exempt from having to pay. While this affects all states and territories, it impacts the ACT the most.

A quarter of the ACT’s workforce are employed by the Commonwealth government.

All other states and territories are less than 2 per cent. This means that the ACT government is missing out on between $500 million and $850 million in payroll tax.

There are constitutional concerns about whether the Commonwealth government should pay tax to a state or territory government.

But there is nothing stopping the feds from paying an equivalent amount to the ACT.

After all, the ACT accommodates the largest part of the Commonwealth government’s workforce.

They provide roads, hospitals, schools, and all the other essential government services. It is only right that they contribute their fair share to provide them.

Andrew Barr should be negotiating with Albanese about getting a payroll tax equivalent.

We are a wealthy territory in one of the wealthiest countries in the world, and yet we’re made to feel poor.

Our ageing population sees an increase in demand for health services and this is suddenly a crisis.

GST revenue is failing the states and territories, and the ACT government should be actively looking for how it can probably fund the services that the ACT deserves.