the distribution of the goods and service tax (GST), saying it will
examine his proposal for a 75-cent "floor" for WA.
West Australian Premier Colin Barnett has welcomed a federal review of
the distribution of the goods and service tax (GST), saying it will
examine his proposal for a 75-cent "floor" for WA.
Prime Minister Julia Gillard announced the review for a "simpler,
fairer" system in Perth today.
She said the current distribution system struggled to deal with
changing economic conditions, while mining growth increased a
discrepancy in the revenue raised by states and territories.
Mr Barnett has been a vocal critic of the current system, saying it
was leading to a decreasing GST share for WA.
"I am convinced the current arrangements for distributing the GST are
unsustainable and the prime minister is aware of my views," he said in
a statement.
"West Australians are willing to assist other weaker states through
the GST carve-up but we are not prepared to cop a return of just 68
cents for every GST dollar we pay."
Mr Barnett said WA would face an even worse scenario in 2014-15 when
it is forecast to receive less than 40 cents back for every dollar.
"The Liberal-National government has long argued that there should be
a floor at about 75 cents in the dollar.
"It would give WA more certainty over revenue and allow us to make the
long-term investment decisions a state like Western Australia needs."
Mr Barnett said a 75-cent floor meant WA would retain an additional
$5.6 billion in GST revenue over the next four years, allowing the
state to get on with the business of powering Australia's economy.
He welcomed the appointments of former premiers Nick Greiner and John
Brumby and South Australian businessman Bruce Carter to lead the
review, saying he was confident they would approach the matter in an
open and objective way.
