Independent Member for Curtin Kate Chaney has hit back against the Productivity Commission calling the WA GST deal a ‘mistake’.
The Commission’s interim report released today follows an inquiry into the operation of the 2018 GST reforms, which produced a fairer outcome around how GST is distributed between the states. Ms Chaney made a submission to the inquiry calling for the existing 2018 arrangements to continue.
“The current system is fair, stabilising and nationally beneficial. While WA benefits today, the system ensures that any state with concentrated or cyclical revenues can be protected from low GST shares in the future,” Ms Chaney said.
“WA is the economic engine room of Australia. Even with the legislated 75 cent floor, introduced under the 2018 reforms, Western Australians continue to receive the lowest per capita GST share of any state.
“Prior to 2018, the GST approach essentially encouraged states to maximise gambling revenue, while disincentivising mining revenue. Billions in combined gambling revenue earned by NSW, Queensland and Victoria did not affect GST distribution to those states, while WA was penalised for pursuing jobs generating economic growth.
“It makes no sense to disincentivise WA’s economic growth, which produces nearly half the nation’s total exports, when resources and critical minerals are needed for clean-energy technologies, advanced manufacturing and national defence supply chains.
“The alternative models proposed by the Commission would simply re-introduce extreme volatility and disincentivise the development in WA which underpins our national economy and the national interest.”
Before the Commission delivers its final report later this year, Ms Chaney urged it to recognise WA's significant contribution to national economic performance, which the interim report currently ignores.
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