More land tax or fight for the GST?

Dear Metropolitan Land Owners,

Land tax on property investments could be extended to the Peel and Bunbury areas in a bid to raise an extra $7 million a year for the WA State Government.

The Metropolitan Region Improvement Tax (MRIT) applies to residential investment and many commercial properties valued at $300,000 or more.  This tax is paid into a slush fund operated by the WA Planning Commission for public open spaces and land needed for infrastructure such as roads and rail.

Until WA receives its proper share of the GST, the State Government will have no other option but to raise taxes or reduce essential services, even close them.

If you are facing another tax on top of the land tax you already pay, join us to fight for the GST for WA by becoming supporter member here.


GST fixes local issues

The seat of Cottesloe has been neglected for years.  It’s considered a “safe” Liberal seat.

Western Australia Party identifies the seat of Cottesloe as having an important role in sending a message to the State and Federal Government to fix the GST.

We are not asking electors to change their Liberal or Labor values, we are just seeking your number 1 vote to fix the GST and local issues.


Infrastructure has been neglected for ages.  The popularity of the area has meant traffic has rapidly increased without any orderly and proper planning nor the infrastructure to deal with truck movements.

So how can it be fixed?

Electors can’t wait for “top ups” or handouts from the Federal Government which ends up in marginal seats, NOT Cottesloe, while traffic congestion increases out of control.

The only option is a political imperative to send a message to the State Government and Canberra that electors are prepared to vote 1 for the WESTERN AUSTRALIA PARTY‘s campaign for GST for WA and make the seat of Cottesloe a marginal seat.

Stirling Bridge traffic

The Western Australia Party is concerned about the massive traffic congestion at the Tydeman Rd/Stirling Hwy intersection caused by large trucks carrying containers. If the North Wharf container terminal remains where it is, the number of containers being transported by road is predicted to rise from the current 4 million/year to about 14 million/year!

If the Government decides to leave the container terminal on North Wharf then the container movements should be by rail.  Without a substantial increase in the GST for WA, there is no funding for rail.  We have to find a way to relieve the traffic congestion in North Fremantle caused by the trucks.

One option is to duplicate Stirling Bridge. The Party is NOT advocating that be done but ONLY as a partial solution to better manage the vehicle movements. If nothing is done about the container terminal, the traffic movements in North Fremantle could become a disaster.

Curtin Avenue traffic

This election we have highlighted the issue of Road Safety within the electorate of Cottesloe. Specifically, on Curtin Avenue.  It’s chaotic and a danger to everyone, an accident waiting to happen. Something needs to be done urgently, well before any Federal Government handouts find their way to the electorate.

Strategic Planning

A long term strategic plan for the entire electorate is a priority.  Planning has been left at the mercy of developers, a new home here, a multi-storey building there…. a random approach without the proper infrastructure and planning involved.

A good Strategic Plan for the area addresses density, building heights, internal floor space, parking, traffic congestion, public transport, parking and public open spaces.  This Plan will mean that six or more local governments (Mosman Park, Claremont, Fremantle, Peppermint Grove, Cottesloe, Cambridge) and the State Government will need to work together.  Our candidate, former Mayor of Mosman Park, RON NORRIS has the knowledge and experience and is equipped to deliver on this election promise.

Vote 1 for RON NORRIS and the WESTERN AUSTRALIA PARTY on 17 March 2018 at your nearest polling booth.  Click here to find it.

If you have any questions or comments please contact:

Ron Norris, Candidate for Cottesloe:  0402 036 353

Stephen Phelan, Party Secretary: 0419 906 393

Or send us an email by clicking here:

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GST causes social issues

The GST system rewards states for population growth and gambling.  These are big social issues facing Australia.

If Dick Smith was truly concerned about a sustainable population of Australia, he would tackle the GST system head on.  So far he hasn’t.

The GST system divides up the cash based on some criteria:

  1. A state must grow its population or it gets less GST (NSW, VIC).
  2. A state promoting gambling and receiving gambling taxes gets more GST (NT, NSW, VIC, QLD).
  3. A state can lock up its resources and get more GST (VIC, NT)
  4. A state can use GST for consolidated revenue and will still get more GST (NSW, VIC, QLD, TAS,)
  5. A state with falling population numbers will get less GST (WA)
  6. A state which digs up its minerals and farms every bit of arable land will get less GST (WA)
  7. A state which restricts gambling will get less GST (WA)

This GST system can change with a stroke of a pen by the Federal Treasurer, Scott Morrison from NSW.  It does NOT need the states to agree!


GST Colin Barnett the Federal Treasurer makes the decision 3

Peter Kennedy, Barnett back to beat the GST drum, Business News WA, 9 February 2018


So why doesn’t the federal treasurer reward Western Australia for it’s economic and social contribution to Australia with more GST?  Is he scared of losing political power from the states with the biggest populations and gambling problems?

Western Australia must use its political power to elect candidates who fearlessly represent the rights of our state to share in Commonwealth revenue.  Andrew Wilkie has done this for Tasmania, and Nick Xenophon has done it for South Australia.

It’s our turn to elect fearless candidates to both state and federal parliaments.

Truth about the GST

Our Party seeks the truth about the GST.

The truth is no politician can explain the GST welfare system, and none of them want to change it!

The states must agree to change the GST.  FALSE!

Changing the GST welfare system simply requires a simple majority vote of both houses of Federal Parliament to do this.  It DOES NOT require states and territories to agree to it. Ref ABC Fact Check, 15 June 2016.  Holding the balance of power will ensure WA receives back the GST it raises.

The Treasurer does not have the power to change the GST. FALSE!

The Federal Treasurer Scott Morrison also said that the GST carve up “is decision of the Commonwealth Grants Commission, in the same way it is being done every year, ever since the GST was introduced. All the money from the GST goes to the states, none of it comes to the Commonwealth. It’s distributed on a basis of a formula which is set by the Commonwealth Grants Commission“.  However Gareth Parker challenged him saying that he is responsible for determining each states share.  The fact is the Treasurer is responsible for determining each state’s share of the GST.  Scott Morrison should be held to account.

Changing the GST will disadvantage other states. FALSE!

The Horizontal Fiscal Equalisation (HFE) disadvantages WA by excluding gambling taxes collected by the other states and rewarding them with GST welfare.  The loss of GST has forced Western Australia to dig up minerals and farm every inch of arable land just to make ends meet.

In terms of land mass and infrastructure, WA represents 33% of Australia and receives just one allocation of GST while the Eastern States, except Northern Territory (Qld, NSW, ACT, Vic, SA),  receive five allocations of GST for their collective land mass of 49%.

Eastern States receive $55.1 Billion of GST for its land mass yet Western Australia receives just $2.4 billion which is a massive disadvantage.  WA has 11% of the population but receives just 3.8% of the $62.8 billion GST pool.

WA has been a net beneficiary of Grant Funding.  FALSE!

From 1910 to 1942 Western Australia received a total of $21,940,000. In 1943 NSW received their first lump sum grant of $30,052,000 exceeding the total payments received by WA in previous years. NSW, Vic and Qld have exceeded WA in dollars received ever since.  Read this post for more details.

WA can insist the GST collected in WA stays in WA. TRUE!

In 1942, in order to run the war effort, the federal government made laws to become the sole collector of income tax.  Four states—Western Australia, Victoria, South Australia and Queensland—challenged the legislation on collecting income tax (not land tax or GST). The High Court ruled it was valid on the grounds that section 51 (ii) of the Constitution gives the Federal Parliament power to make laws relating to taxation, even though in practice the legislation removed a state power. It also ruled that under section 96 of the Constitution, the federal government could attach conditions to funding grants, and therefore it was legal to only give compensation to states that stopped collecting income tax.

Western Australia imposes Land Tax and the Metropolitan Regional Improvements Tax (MRIT) and receives funding grants from Canberra.  Therefore on this basis the WA State Government could collect the Goods and Services Tax (GST) raised in WA instead of Canberra collecting it!  GST is not income tax, its a Goods and Services Tax!  Canberra may stop paying grants to WA, but we won’t need grants if WA receives 100% of the GST it raises (11% or $6.9 billion per year).  Funding grants could be redirected to other states.

If you have any questions or truths about the GST, please contact the Party Secretary, Mr Stephan Phelan here:

Truth about Commonwealth financial support for WA

GST welfare statesOther States have claimed that Western Australia has historically benefitted from the distribution of Commonwealth grants – principally GST grants and its predecessors (financial assistance grants, tax reimbursement grants and special grants paid in recognition of State disadvantages).

However, for most of the 20th century Western Australia’s export orientated economy was heavily disadvantaged by Commonwealth tariffs which were set up to protect the manufacturing industries of the Eastern States.

The extra funding received by Western Australia in this period was effectively compensation for Commonwealth tariff policies, and indeed the Commonwealth Grants Commission (which recommends the distribution of GST grants among States) was set up in the 1930s partly in response to concerns about Western Australia’s disadvantages from federation, including tariffs.

Since sustained tariff reform began in 1988-89, Western Australia has been a net contributor to other States through the distribution of GST grants and their predecessors. The following table shows the subsidies received by Western Australia (i.e. funding additional to Western Australia’s population share of GST grants and its predecessors), both in nominal terms and present value terms (adjusted to 2017-18 dollars for the time value of money).
Nominal + Present Value
$b     $b
1988-89 +0.2 +1.4
1989-90 +0.2 +1.2
1990-91 +0.3 +1.2
1991-92 +0.3 +1.1
1992-93 +0.3 +0.9
1993-94 +0.2 +0.6
1994-95 +0.1 +0.4
1995-96 +0.1 +0.2
1996-97 -0.0 -0.0
1997-98 -0.0 -0.1
1998-99 -0.0 -0.1
1999-00 -0.1 -0.3
2000-01 -0.1 -0.2
2001-02 -0.2 -0.3
2002-03 -0.2 -0.3
2003-04 -0.1 -0.3
2004-05 +0.1 +0.2
2005-06 +0.1 +0.1
2006-07 -0.0 -0.0
2007-08 -0.3 -0.5
2008-09 -0.7 -0.9
2009-10 -1.0 -1.3
2010-11 -1.5 -1.9
2011-12 -1.4 -1.7
2012-13 -2.2 -2.6
2013-14 -3.0 -3.3
2014-15 -3.6 -3.9
2015-16 -4.3 -4.5
2016-17 -4.3 -4.4
2017-18 -4.4 -4.4
Total -25.7 -24.0

Furthermore, the subsidy that Western Australia now provides through HFE is just one part of Western Australia’s contribution to the Federation. More broadly, Commonwealth revenues derived from Western Australia (such as GST and company tax) exceed the Commonwealth spending on Western Australia (such as GST grants and welfare payments). Based on analysis by the Western Australian Department of Treasury, using latest available data, Western Australia’s net contribution was around $21.7 billion in 2015-16 (details are reported in Appendix 11 of Western Australia’s 2017 18 Budget Paper No. 3). Western Australia is estimated to have provided a net contribution to the Commonwealth since 1986-87.

The above issues were discussed in Western Australia’s first submission to the current Productivity Commission HFE Inquiry, which can be found here (see pages 12 15):

Join the Party, spread the word and correct the misinformation!

GST for WA