$17Bn missing over 8 years

The major parties and the media would like you to think that the GST fix of 70c (rising to 75c in 8 years time) in the $ minimum per capita distribution to Western Australia is a good outcome.

Firstly, Western Australia GST share was already trending towards 70c in the $ per capita share due to falling state revenues from royalties, stamp duty, and payroll tax.

Secondly, the 70c floor does not take into account the huge amount of GST revenue that Western Australia has lost in the past 18 years.

Thirdly, Western Australia will be missing out on 30c in the $ of its per capita share which is approximately $2.1Bn per annum. Over 8 years that is $17Bn which could go to reducing Western Australia’s massive debt and/or improve the provision of infrastructure and services. The so-called “GST Fix” also does nothing to reduce the State’s reliance on Payroll tax, Stamp Duty and Insurance Duty, which are insidious taxes that increase costs of business and housing, and have negative impacts on employment.

The WESTERN AUSTRALIA PARTY will continue to fight for a fair share of the national GST revenue pool. And the only fair share is a 100% per capita share!

GST Lemon

GST Lemon – top ups and handouts!

 

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