Attacks on WA ramp up as GST change looms

ANGRY States and Territories have ramped up their attacks on WA on the eve of historic GST changes, saying the west does not deserve an eight-year, $4.7 billion windfall.

The States’ and Territories’ anger at an imminent GST deal is laid bare in submissions to a Senate committee reviewing the legislation that will mark a new era in the way billions of dollars in GST revenues are distributed.

The NT, whose GST share per dollar is a $4.36 compared to WA’s 47¢, said the new GST re-distribution model would provide WA with a “significant competitive edge over all other States”.

“The Bill will entrench a deliberate fiscal inequity between the States and Territories, and in particular favour Western Australia and reward it for past poor budget management,” the NT said.

Under the proposed new GST model, set to be pbaded in Federal Parliament next month, WA’s GST will no longer fall below 75¢.

States and Territories have demanded a guarantee they will not be worse off under the changes. But that guarantee only extends to 2026-27.

“The reforms as they stand not only perpetuate this unfairness, but add to it,” the NSW Government wrote.

“Perversely, they provide the WA Government a competitive advantage that will allow it to fund lower effective rates and/or better services than the rest of the country on a permanent basis.”

WA Premier Mark McGowan, who fronted the Senate review on Friday, said: “The fact is, changing the system will have a long-term economic benefit across the country. This hasn’t just been about WA, it’s also about securing nationwide economic success.”