CCI welcomes Federal Treasurer’s GST commitment

The Chamber of Commerce and Industry WA (CCI) has today welcomed Federal Treasurer Scott Morrison’s firm commitment to fix the broken GST this year.

CCI Chief Economist Rick Newnham said the Federal Treasurer must continue to take the high ground and reform the GST distribution in the national interest.

“The Productivity Commission has backed CCI’s proposal to fix the GST in its draft report – the only organisation to have this support,” Mr Newnham said.

“CCI’s solution would encourage every state to do more to develop their own economy while ensuring weaker states continue to receive a high level of support.

“Fixing the GST distribution will go down as one of the most significant reforms of Federal and State relations and will boost the national economy.

“The independent Productivity Commission has made it clear that without a change to the GST formula the national economy will suffer, holding back business investment and job creation for decades to come.

“Short-term top-ups can no longer be the answer. Structural change must be made to encourage all states to grow their own economy.”

The latest GST redistribution was further proof that hard working West Australians continue to be ripped off by a broken system.

“Forty-seven cents has been WA’s punishment for forging ahead to develop its own economy while other states are rewarded for enjoying the ride,” Mr Newnham said.

“States like Tasmania and South Australia now receive about three and four times the share of GST that WA receives. There’s no acceptable justification for this situation.

“The time is now – 2018 is the year to fix the GST.

“CCI will continue to work closely with the Federal and State Government to fix the GST once and for all, and look forward to the Productivity Commission’s final report on 15 May.”

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