Western Australia’s battle to keep its fair share of the GST has officially begun, with the release of Terms of Reference for the Productivity Commission’s review of how the tax is distributed to the states.
The 2018 deal, which secured WA a 75-cent floor in GST revenue and delivered fairness to the GST system for the first time since its introduction, is up for review in 2026.
CCIWA Chief Economist, Aaron Morey, said the review will be a watershed moment for the future of Western Australia’s economy.
“The Prime Minister promised during the election campaign that WA’s current GST deal would stay in place, but we know he’s under significant pressure from East Coast governments and commentators to break that promise,” he said.
“Without that deal in 2018, WA would be getting back just 18 cents for every dollar we pay in GST, which adds up to around $6 billion less in this financial year alone.
“That would hamstring WA from developing the infrastructure we need to continue to power the national economy.”
Mr Morey said even under the current system, WA receives the smallest return on the GST of any state, with 75c still lower than any other state has ever received.
“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.”
CCIWA was instrumental in securing the 2018 GST deal and will again play a central role in advocating for a fair go for WA.
“We’ve once again enlisted four titans of WA business – Nigel Satterley, Andrew Forrest, John Poynton and Michael Chaney – to sit on our GST Deal Defenders Steering Committee,” Mr Morey said.
“In partnership with the Western Australian government and other interest groups, we’re ready for a tough fight in 2026 to ensure WA is not ripped off again.”
