EDITORIAL: PM defies East on GST to back WA
EDITORIAL: The noise coming out of Eastern States capitals proclaimed loudly that the system was rigged against them while it poured riches into WA.
There has been a tsunami of complaints from everywhere east of the Nullarbor Plain about the GST formula since the Productivity Commission said it unfairly favoured Western Australia.
The noise coming out of Eastern States capitals proclaimed loudly that the system was rigged against them while it poured riches into WA.
On Monday Prime Minister Anthony Albanese defied the noise while on a visit to Perth and made it clear he was backing in WA and the existing deal would remain in place.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.The issue had dominated the political agenda in the ten days since the commission handed down the results of its GST review.
The Productivity Commission’s 124-page report argued the 2018 GST reforms had failed.
The report recommended reverting back to the pre-2018 rules, under which WA’s GST take would fall.
WA Premier Roger Cook immediately vowed “our message to the Eastern States is clear: the only change we will accept is no change.”
NSW Premier Chris Minns compared WA to wealthy Gulf states and insisted the GST formula was not fair.
“We’re now in a situation where Western Australia is so wealthy and so rich that they’re competing and bidding on NSW rugby league games and putting tens of millions of dollars on the table,” the NSW Premier complained.
Victoria demanded WA’s “sweetheart” deal was scrapped.
WA maintains it provides the necessary and costly support the resource sector needs to drive national wealth.
Mr Albanese’s initial response was to give comfort to WA’s position without offering a guarantee the State’s GST share would not be altered.
Western Australia was “a driver of our national economy,” he said. “I assure Western Australians of this: you will get your fair share.”
The response left the matter hanging amid debate about what was meant by “fair share” and whether Mr Albanese was giving himself some wriggle room.
But On Monday Mr Albanese, standing alongside Mr Cook, put that debate to bed.
“What I believe is very clearly there will be no change to WA’s GST arrangements while I’m Prime Minister,” Mr Albanese said.
“I think that WA deserves that because WA contributes to the national economy and helps to drive that economy.”
Rather strangely, given that he was in WA announcing the news the State wanted to hear, he appeared rather testy about being questioned.
Harking back to 2024 when he signed a WA journalist’s arm on which was written “no change to WA GST”, he said: “I’ve said it multiple times.”
“I’ve signed people’s body parts for goodness sake, I mean seriously!”
The announcement also underlined just how much importance the Government attaches to its electoral standing in WA, where it holds 11 of 16 Federal electorates.
Not far from where Mr Albanese gave the commitment on Monday, a State by-election for the seat of Secret Harbour is in its final week, and it is said the Prime Minister is seen as a drag on the Labor vote in a safe seat it looks likely to lose to One Nation.
Mr Albanese did not visit the electorate, even armed with the GST news.
Intriguing.
