East coast whingers put on notice as WA response team deployed in State’s fight for fair share of GST carve-up

A powerful WA response team — headed by WA Treasurer Rita Saffioti — will address the Productivity Commission this week to tell the group why they have got it so wrong on GST.

Ms Saffioti, Chamber of Minerals and Energy of Western Australia CEO Aaron Morey, Chamber of Commerce and Industry WA boss Will Golsby, and chief economist Dr Daniel Kiely, will take part in virtual public hearings ahead of the commission’s final report to the Albanese Government at the end of this year.

Despite Prime Minister Anthony Albanese insisting there will be no change to the 2018 GST reforms that finally delivered WA its fair share of the $100-billion-a-year pie, the high-powered leaders believe the mission to stop the eastern states whingers from taking our money remains unfinished.

“While the Prime Minister has given Western Australians an ironclad commitment that there will be no change to our GST deal, the Productivity Commission’s legislated review will continue to run its course until its final report is handed down later this year,” Ms Saffioti told The Nightly.

“I’ll be appearing before the Productivity Commission’s public hearing on Friday to put WA’s strong case forward once again and continue our fight to protect our GST deal.”

The Productivity Commission has made its intentions clear — recommending in an interim report that the current 75 cent in the dollar GST floor, that allows WA to pump millions into supporting the nation’s vital resources industry, should be abolished.

The commission’s August report was met with fierce opposition here in WA from government, business and resource leaders - even public identities like spud king Tony Galati — who pointed out the stupidity of the body’s position.

Former federal finance minister Mathias Cormann, one of the architects of the 2018 GST reforms, came out publicly and criticised the commission’s recommendations, saying any overhaul of the deal would “take Australia backwards”.

“A fair, stable and predictable GST distribution is not a Western Australian issue but a national interest issue,” Mr Cormann warned.

“The 2018 reforms delivered it. Strengthen them. Do not unwind them.”

Days later, Mr Albanese fronted media in Perth to assure WA it would keep its GST deal.

“There will be no change WA’s GST arrangements while I’m Prime Minister,” Mr Albanese promised.

Still, the Productivity Commission is continuing its work on a final report, and will also take briefings from the NSW, Queensland, Victorian, Queensland, Tasmanian and Northern Territory treasurers at this week’s hearings, which start Monday.

CME boss Aaron Morey will address the inquiry on Wednesday.

Mr Morey said it was vital the Productivity Commission fully understood the ramifications of changing, or abolishing, WA’s GST deal which next financial year is expected to deliver the State $9 billion.

“I think the Productivity Commission has erred in its analysis of GST reforms,” Mr Morey said.

“I don’t think that it was as robust as it could have been in its assessment of the role of those reforms in encouraging states and territories to develop their economies.

“I’m keen to re-iterate that in order to drive productivity in the country, you must have the settings in place that support the most productive industry - and the most productive industry in this country is the resources sector by a country mile.

Dr Kiely said WA could “not be complacent” - despite Mr Albanese’s assurances.

“We look forward to making a strong case for WA at the Commission’s hearings and will highlight what we believe to be a number of key failings in the interim report,” Dr Kiely said.

“These include concerns with the manner in which the Productivity Commission addressed the terms of reference, the backflip on the Productivity Commissions’ own findings in 2018, and a notable imbalance in the way views from WA submissions were weighted compared to those from East Coast interests.

“While the Prime Minister has been very clear that there will not be a change to the GST arrangements under his watch, WA cannot afford to be complacent.”

Ms Saffioti said the Commission had given “too much credence” to the whingers in the east, warning that vital infrastructure in WA could not be delivered without a fair share of the GST.

“The PC’s interim report was a complete backflip on its own recommendations from 2018 and gave too much credence to eastern States commentators pushing to unwind the reforms that could see Western Australia lose up to $6 billion a year,” Ms Saffioti said.

“This would place at risk our ability to fund key services like health and education, as well as the infrastructure that powers our economy and drives the national economy.”