Western Australia Premier Criticizes GST Report

Topic: Tax

In short:

Western Australian Premier Roger Cook called the authors of a report on GST distribution 'east-coast clowns'.

The report found that WA was the only state to benefit from the changes, receiving more GST revenue than it needed.

Some federal Liberal politicians from WA say they will make sure Anthony Albanese keeps his promise to protect the deal.

Premier Roger Cook criticized the report, saying it was an 'attack' on Western Australians.

A new report by the Productivity Commission said WA was the only state to benefit from the 2018 changes to GST distribution.

The GST distribution is meant to help each state provide services and infrastructure at the same standard.

The report said WA received enough GST revenue to meet 113% of its needs in 2024-25.

The federal government gave the remaining 2% to WA.

Premier Roger Cook said any changes to the GST distribution would unfairly punish WA for its success.

He argued that WA and its mining industry support the rest of the country.

Cook said the Productivity Commission's report was 'an attack on every hard-working Western Australian'.

The report said WA's mining boom increased its ability to fund itself, so it received less GST.

Many Western Australians felt the state was 'losing' revenue due to the GST formula.

The report found WA had more money than it needed as part of the deal.

The commission said pressure from the WA government influenced the 2018 reforms.

'Dodgy, deceitful, dumb'

The commission proposed three options for change, including returning to the pre-2018 system.

Premier Roger Cook and Treasurer Rita Saffioti held a media conference after the report was released.

Cook described the commission's options as 'dodgy, deceitful, and dumb'.

Cook spoke with Prime Minister Anthony Albanese about the report.

The Productivity Commission said the WA GST deal was a 'costly mistake' and should be scrapped.

Prime Minister Albanese told Cook that the arrangements for WA would remain.

The report does not reflect the federal government's position, according to Cook.

Cook said they would fight to keep WA the strongest economy in the nation.

'You will get your fair share': PM

Albanese said WA would get a 'fair deal' before the report was released.

Treasurer Rita Saffioti said changing the GST distribution would remove $6 billion from WA's revenue each year.

She said it was 'illogical' and did not support economic growth.

Saffioti said a productivity commission should focus on policies that support productivity.

Saffioti joined Cook in condemning the report on the GST carve-up.

The commission argued that the GST was meant to provide equal services across Australia.

The report said a state that receives less GST reflects a need for less support to deliver services.

Cook and Saffioti's media conference was evacuated due to a fire alarm.

The media conference was held outside after the evacuation.

Saffioti joked that while they were gone, others might take WA's GST.

Liberals draw line in sand

Federal WA Liberal MPs said they would not accept any outcome that left WA worse off.

The WA federal Liberal team will not accept any changes that harm WA.

Senator Michaelia Cash is defending the GST deal.

Cash said the team would not move from their position.

MP Andrew Hastie said Albanese and Chalmers promised to protect the deal.

Hastie said they would hold them to that promise.

WA Opposition Leader Basil Zempilas said it was a 'dark and dangerous day' for WA.

Zempilas questioned whether Albanese would act in WA's best interests.

Zempilas said Albanese had backtracked on other promises before.

WA like a gulf state: Minns

Other states and territories have criticized the 2018 reforms.

NSW Premier Chris Minns said the report showed that change was needed.

Minns said every state except WA wants change.

Minns compared WA's wealth to that of Gulf States like Saudi Arabia.

Minns said WA is competing with other states due to its wealth.

Chris Minns says every state except WA wants change.

South Australia's Treasurer Tom Koutsantonis said the system was unfair.

Koutsantonis said the system made Australia unfairer and WA richer.

Tasmanian Treasurer Eric Abetz argued for a return to pre-2018 GST arrangements.

Abetz said it was critical for Tasmania's funding of essential services.

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