GST lemons!

The WESTERN AUSTRALIA PARTY‘s campaign to fix the GST is a per capita share of GST revenue collected by Canberra and paid to the states and territories – no strings attached.


Six states and territories receive more GST than their per capita share as this graph from CGC shows. WA (-5.7%) and NSW (-4.6%) are the only states that receive less.

A per capita share GST formula is easy to understand, stops Australia from being a welfare nation on the back of GST handouts, and the negative effect of pokies used to exploit gamblers and their addictions as revenue windfalls for all states except WA.

GST per capita share 2018







Labor’s proposal (April 2018) is for a 70 cent GST floor using $1.6 billion infrastructure fund as compensation to WA for its low GST share.  The fund is a “de facto” level of 70c in the dollar, without taking any money from other states.  This fix is a GST LEMON. Modelling show the money could run out a year later after a Labor government came to power, Andrew Burrell, WA Chief Reporter, Perth, 11 April 2018. Click here>>>


The Commonwealth Grant’s Commission’s Horizontal Fiscal Equalisation report (May 2018) recommended a model base on equalisation to the average state.  Under this model WA would receive an extra $7 billion over the next 8 years or $875 million each year, hardly enough to pay the interest on WA’s debt and a shortfall to the $7 billion per year base on a per capita share.  The Commission assumes all states will exploit revenue from gambling and pokies. This fix is a GST LEMON.


Liberal’s proposal is to fix a 70c to 75c in the dollar floor to deliver WA $4.7 billion in extra GST cash over 8 years or $587.5 million per year, again like Labor, it’s not enough to pay the interest on WA’s annual interest payment on debt, and it’s not $7 billion per year under a per capita share of the GST. This  fix is a GST LEMON.

Q: Does the GST still need fixing?

Yes, while other states use our GST to balance budgets and pay down debt:

  • WA has nearly $40 billion in debt and an interest bill of $1.3 billion per annum.
  • WA is the ONLY STATE to receive less than 83 cents in the dollar of GST revenue since 1999, and the only state to receive the lowest amount at 30 cents in the dollar.
  • WA is closing services and robbing Peter to pay Paul – Moora College, WA Camp Schools, etc.
  • The GST formula rewards states that exploit gambling revenue and pokies. WA does not.
  • WA increases payroll tax which impacts on jobs.
  • Payroll tax is harmful to WA small business
  • MRIT being used to prop up WA’s credit rating.  This $500 million tax pool is meant to fund public open space and land for transport – roads and rail.

GST Lemons!


Gambling tax exemption from GST split hurts WA

If the Liberal Party were really serious about fixing the GST for WA, they would have voted YES to include gambling revenue in the GST formula at the 2018 Liberal Party Federal Conference.  Instead they voted NO.

It is a little known fact that each state’s gambling revenues is not considered when the Commonwealth Grants Commission decides how much GST revenue each state should receive.

The states and territories that permit Club poker machines benefit from this situation receiving more GST plus significant revenues from Club poker machines and other gambling, far in excess of what Western Australia raises from the Burswood located casino. As a result, Western Australia’s share of Commonwealth revenue becomes GST welfare to these states.

Club poker machines and gambling revenues are another reason why WESTERN AUSTRALIA PARTY says

“GST formula is a LEMON and should be abolished.”

“Forget the GST formula which Liberal and Labor won’t fix, just give WA our 100% per-capita share of the GST revenue.”

If Western Australia received 100% of our per-capita share of GST, we could pay off debt, and provide a well-funded education, health and law enforcement service to all Western Australians.

Currently Western Australia receives $5.3 billion less than its capita share of the total GST revenue, and this shortfall is partly due to the exclusion of gambling revenues from the GST formula.

Vote 1 Russell Goodrick for Darling Range on 23 June 2018

Russell Goodrick for Darling Range Photo


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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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: