Arabic version: لجنة الإنتاجية تدعو إلى إصلاح اتفاق ضريبة السلع والخدمات في أستراليا الغربية

According to ABC News, the Productivity Commission’s interim review has recommended unwinding key parts of the Western Australian GST arrangement introduced in 2018, describing the system as a costly mistake. The review found that Western Australia had been left significantly better off under the changes, while other jurisdictions required “no worse off” payments.

The 2018 reforms guaranteed states a minimum GST share and committed the Commonwealth to compensating any states that would receive less than under the previous distribution system. The reforms had been expected to cost about $5 billion by 2024-25, but the cost has risen to almost $23 billion, ABC News reported.

The commission said the GST system is intended to help states provide broadly comparable public services. Its preferred approach is to move back towards the pre-2018 system while directly addressing the effect of Western Australia’s mining revenues. South Australia, New South Wales, Victoria and Queensland welcomed the interim findings, with the states backing calls to end the present deal.

Western Australian Premier Roger Cook rejected the proposed change, saying it would punish the state for its success. He said Prime Minister Anthony Albanese had told him the current arrangements would remain. Albanese, when asked by ABC News, said only that Western Australia would receive a “fair” deal and noted the review arose from legislation passed by the Morrison government.

The issue is expected to feature at a national cabinet meeting later in August, where leaders will also discuss proposed national standards for data centres. The Productivity Commission’s report is interim, with final recommendations due in December, leaving the federal government time before deciding whether to alter the GST arrangements.