Liberal Andrew Bragg was ‘wrong’ on GST punishment plan, Michaelia Cash says

A senior Liberal has been slapped down over a proposal to tie States’ GST shares to housing development, with a WA colleague labelling the comments as “wrong”.

NSW Senator Andrew Bragg created a stoush on Sunday when he told the ABC a future Coalition Government would consider docking a State’s share of the lucrative GST funding pool if they failed to support new developments.

The comments were seized on by Labor, who, embarking on a four-day tour of WA, had launched an advertising campaign criticising Opposition Leader Peter Dutton’s record on the GST.

On Monday, WA Senator Michaelia Cash emphatically slapped down her colleague’s proposal, saying Senator Bragg was wrong.

“That is not our policy. It’s been made clear to Andrew Bragg that he got it wrong. That is not our policy,” she said.

“I didn’t have a reaction, because I knew what was wrong and I knew what wasn’t our policy.

“Remember, I sat around the Cabinet table. I was one of the Western Australian Federal Liberal members who fought tooth and nail for WA to get our fair share of GST.”

Speaking on ABC on Sunday, Senator Bragg said everything was under consideration, including withholding GST payments, for States that failed to stimulate development.

“We need to be creating and finding a way to hit the States hard where it hurts,” he told the ABC’s Insiders program.

“Otherwise, I fear that we would drift into a situation where the housing problem will get worse before it gets better.”

The comments mounted more political pressure on the Coalition and the GST deal for WA, originally legislated by the Morrison Government in 2018.

A Labor advertisement launched on Sunday used quotes from Mr Dutton’s former colleagues, including Julie Bishop, claiming he had opposed the deal, something Senator Cash disputed.

“It is legislated. Peter Dutton is not undoing the legislation. We had a unanimous Cabinet decision on this. It is not changing,” she said.

WA Treasurer Rita Saffioti described Senator Bragg’s approach as “plain wrong”. “Threatening the State is not the right thing to do,” she said.

Speaking in Perth, Federal Treasurer Jim Chalmers said the Government was committed to the deal.

“We know the difference it makes here. We want to provide the people of WA with the GST revenue that you need and deserve,” he said.

Asked about whether an upcoming Productivity Commission review of the deal was the true threat to WA’s fair share, Dr Chalmers disagreed.

“I don’t see it that way,” he said.

“We inherited the review, but we made it clear to the National Cabinet that we were extending the GST deal that sees WA get the GST revenue that they need and deserve.”