- WA will receive just 47.3 per cent of its population share of GST revenues in 2018-19
- The current system will rob WA of around $3.6b in 2018-19 to prop up other States
The Commonwealth Grants Commission has released its recommended GST relativities for 2018-19. Western Australia is set to receive just 47.3 per cent of its population share of GST revenues.
As a result, in 2018-19 alone, WA will be short-changed to the tune of $3.6 billion. WA's total shortfall now mounts to more than $30 billion since the GST was introduced.
At the same time as Western Australia is being short-changed by billions of dollars, most other States and Territories will continue to receive more than their population share. For example, the Northern Territory will receive 426 per cent of its population share, Tasmania 177 per cent and South Australia 148 per cent.
This latest disappointment is further proof of the need for overdue GST reform.
The McGowan Government continues to demand a fairer GST share for Western Australia from the Commonwealth Government.
The McGowan Government recognises the constructive engagement with the Commonwealth on the need for both further short-term measures and medium to long-term reforms to address current inadequacies in GST sharing arrangements.
In that context the Government awaits the Productivity Commission's final report into the GST system, to be handed to the Commonwealth Treasurer in May.
Comments attributed to Treasurer Ben Wyatt:
"This latest announcement from the Commonwealth Grants Commission is yet another slap in the face to the good people of Western Australia.
"This is now the sixth year in a row that Western Australia has not even received half of its population share of the GST. No other State has received less than 67 per cent since 1942-43.
"Western Australia's continued low GST relativity reinforces that urgent reform is needed.
"We appreciate the constructive engagement with the Commonwealth in recent months about the need for reform. Once the Productivity Commission's final report is handed down we expect the Prime Minister and Treasurer to deliver this just reform."
Treasurer's office - 6552 5900