Arabic version: مراجعة ضريبة السلع والخدمات تضغط على اتفاق أستراليا الغربية
According to The Guardian, a Productivity Commission review has found that the Morrison-era GST arrangements for Western Australia made the distribution of more than $100bn in revenue among states and territories less equitable and did not achieve their objectives.
The arrangements were introduced in 2018 after Western Australia’s revenue fell following the end of the mining boom. They created top-up payments and a “no worse off” guarantee so that no state would receive a lower per-person GST share than New South Wales or Victoria. The deal is expected to provide Western Australia with an estimated extra $60bn in tax revenue over a decade.
The commission said the changes had already cost about $23bn to 2024-25 and could cost as much as $60bn by the end of the decade. Deputy chair Alex Robson said the system should return to its core purpose of ensuring states and territories can offer Australians a similar standard of services and infrastructure regardless of where they live.
The review found Western Australia was the only state benefiting from the changes. One of the report’s authors, Angela Jackson, said the arrangements created perverse outcomes: an improved fiscal position in Western Australia would not reduce its revenue, while an improvement in another state’s budget position could lower that state’s GST share.
Political support for the deal remains strong. Labor extended transitional arrangements, originally due to end in 2026-27, through to 2029-30. Prime minister Anthony Albanese said Western Australia was a driver of the national economy and would receive its “fair share”. WA premier Roger Cook criticised the report, while NSW premier Chris Minns and Queensland treasurer David Janetzki urged that its recommendations be adopted in full. A final report is expected before the end of the year.
