The majority of Western Australians are worried the State could lose its hard-fought gains on GST revenue, a recent CCIWA survey has found.
Of the nearly 1,000 WA households surveyed, more than three in five (65%) were worried about a potential reduction in the State’s GST share, with 31% saying they were “extremely concerned”.
It comes as the Eastern States ramp up their campaign to unwind the 2018 GST reform ‘no worse off’ deal that guarantees WA at least 75 cents back for every dollar it contributes to the GST pool.
CCIWA strongly advocated for the landmark policy, which is up for review by the Productivity Commission in 2026.
Taking from WA would hurt the nation
CCIWA Acting co-CEO Aaron Morey said the stakes were high.
“Without that deal in 2018, WA would be getting back just 18 cents for every dollar we pay in GST, or around $6 billion less than with the 75c floor in this financial year alone,” he said.
Comparing the amount of GST per person, for each State and Territory, and the GST per person without the 2018 GST ‘no worse off’ deal. WA is the only state that changes under the no worse off deal. Source: CCIWA
“That would hamstring WA from developing the infrastructure we need to continue to power the national economy.”
Morey said east coast governments were already firing up their campaign to reduce WA’s GST relativity, ahead of the Commonwealth Grants Commission decision early next year.
“We welcomed the Prime Minister’s commitment during the election campaign that WA’s GST share would not be eroded, but he will come under immense pressure from other state governments and east-coast interest groups,” he said.
“CCIWA and the Western Australian government are prepared for the fight, and this survey shows us that people in WA are behind us.”
WA Premier backs GST deal
WA Premier Roger Cook has also defended the deal, saying that even under the current model, WA received the smallest return on GST of any state.
“No other state surrenders as much of its GST to the other states as Western Australia, and I remind them of that every time I have the opportunity to meet with them,” he said at a press conference on June 23.
Morey added: “Other states should be focusing more on developing their own economies like WA has done, rather than throwing stones over a common-sense reform that is clearly in the national interest,” he said.
“The deal to lock in the 75c floor was a significant win for the country.”
To be part of WA’s peak business organisation, get in touch via 1300 422 492 or [email protected].
