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Latest GST redistribution just another rip off of WA

Today’s release of the latest GST redistribution shows hard working West Australians continue to be ripped off by a broken system.

Chamber of Commerce and Industry WA (CCI) Chief Economist Rick Newnham said a GST share of 47 cents means that $3.6 billion will be taken from WA to prop up other states.

“This is hardly an improvement from a very broken GST system,” Mr Newnham said.

“Forty-seven cents is WA’s punishment for forging ahead to develop its own economy while other states are rewarded for enjoying the ride.

“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 Productivity Commission, which is reviewing the GST distribution’s impact on the national economy, has backed CCI’s proposal to equalise to the national average.

“If implemented, this would ensure every Australian citizen continues to have access to the very high standard of the national average of public services, while incentivising states and territories to develop their own industries and grow the national economy,” Mr Newnham said.

“Federal Labor’s decision to rule out a change to the GST formula is a decision to stunt Australia’s economic growth which will cost jobs in every state and territory.

“The 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.

“A plan to top up WA is nothing more than a band-aid solution. Once Labor’s $1.6 billion runs out in 1.5 years, West Australians will be forced to go back to Canberra, cap in hand, to beg for more of our own GST back.

“Ruling out a change to the GST formula is ruling out a long-term fix to the GST and the national economy will suffer as a result.

“It is the wrong decision and should be reconsidered in light of the Productivity Commission’s advice. The Federation deserves a more decent minded, long term solution.”

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