Keep your promise: WA’s GST fight is far from over

Western Australia’s fight to protect its GST deal has been dealt a major blow, with a national Productivity Commission report recommending changes that would slash billions of dollars from State revenues.

CCIWA CEO Will Golsby speaks to the media after the release of the Productivity Commission’s interim GST report.

The Commission’s interim report, released today (Friday, August 14), proposes winding back the Federal Government’s 2018 fix to the GST system.

All three options for reforming the GST distribution system leave WA worse off.

CCIWA CEO Will Golsby says the message to Canberra is clear: “Keep your promise and keep the deal.”

“This report is disappointing – but it’s not the final word,” he said.

“The Productivity Commission has made a recommendation and now the Commonwealth needs to make the right choice.

“Returning to a pre-2018 GST system would blow a hole in WA’s finances, meaning less money for schools, hospitals, roads and the major infrastructure our State needs to keep the national economy strong.

“It also protects WA from the boom-and-bust cycles of our resources sector.”

WA Premier Roger Cook said “an attack on WA’s GST deal was an attack on all Western Australians”. 

“Western Australia is the economic powerhouse of the nation,” he said. “When WA does well, so does Australia.” 

WA backs CCIWA campaign

More than 7,200 Western Australians have already supported CCIWA’s Keeping WA Strong campaign to protect the GST reforms, which were introduced after WA’s share of GST revenue fell below 30 cents in the dollar despite the State driving a disproportionate share of the nation’s economic growth.

The final report is due to be with Federal Treasurer Jim Chalmers by the end of the year, but the Federal Government is under no obligation to accept its recommendations.

Prime Minister Anthony Albanese has repeatedly committed to maintaining the current GST arrangements.

Impact on WA businesses and communities

CCIWA says the options proposed in the interim report would significantly reduce the GST revenue flowing back to the State, creating a funding gap of about $6 billion each year.

It also sends the wrong signal at a time when Australia is competing for investment and trying to grow new industries.

“If Australia wants more investment, more jobs and more exports, we can’t have a tax distribution system that penalises the State for creating them,” Golsby said.

“Western Australia is the engine room of the national economy and changing the GST deal will undermine investment and business growth in this State, the benefits of which are distributed across the nation.”

The Productivity Commission’s final recommendations will be delivered before December 31.

Sign CCIWA’s Keeping WA Strong campaign and add your voice to fight for WA’s fair share of the GST deal.