GST: Fight won’t end with 70-cent floor

09 October, 2017

With the Productivity Commission’s draft report on GST released today, Premier Mark McGowan says his Government will consider it carefully before developing a follow up submission.

“That submission will reiterate our key messages, further develop the reform options from our first submission, and respond to particular aspects of the PC’s report,” he told The Guide.

“Beyond that, we’ll continue to engage directly with the Federal Government, Federal Opposition and our State and Territory counterparts, as well as the CGC as part of its 2020 methodology review.

“We’re confident that if we continue our diligent and constructive approach to this issue, that good outcomes will be achieved for the State.”

McGowan, who will be guest speaker at a CCI breakfast on October 18, says Federal Labor's plan to address GST is a "giant step forward" for WA and establishing the equivalent of a 70-cent floor would be a great first step, but the fight would not stop there.

“We will continue to fight for more,” he says.

The Productivity Commission has joined the growing list of economic authorities that are in lockstep with the Chamber of Commerce and Industry of Western Australia’s (CCI) recommendation to fix Australia’s broken GST calculation.

CCI’s submission to the Productivity Commission called for the GST system to be reformed to a ‘partial equalisation’ model, which would restore incentives for states to develop underutilised industries and boost national economic growth.

CCI Chief Economist Rick Newnham said the Productivity Commission is in fierce agreement with CCI on reforming the GST, demonstrating the WA business community’s case for change.

“Not only has the Commission found that the GST system is broken, they have backed our reform proposal for partial equalisation to promote economic growth,” Mr Newnham said.

The final report will be prepared after further submissions have been received and public hearings have been held, and will be submitted to the Australian Government in January 2018.

Public hearings will be held at the Four Points by Sheraton, Perth on November 14 and 15 November.

All aboard for railcar builders

Premier Mark McGowan says he’s pleased to see Metronet get off the ground with a $1.34 budget allocation in his Government’s first state budget because it will deliver thousands of jobs and deliver world-class public transport to Perth.

With a railcar procurement briefing to be held at the end of the month, McGowan says it will help manufacturers understand how they can jump on board the 50 per cent local content target for the new railcars.

“It will enable Government and relevant manufacturers to understand what skills, products and services currently exist within WA, which may be available to support the manufacture and maintenance of a new design of railcars,” he says.

“The briefing will also assist the State Government to clarify where local work and training opportunities currently exist, and how ongoing jobs and apprenticeships can be created.

He says there’s no reason why the work can’t be done in WA.

“The strategy will create new and ongoing jobs and apprenticeships for Western Australians,” he says.

”The McGowan Government is delivering on its job-creating election commitment to form a rolling stock strategy that grows the State's capacity to build Metronet railcars locally.”

The briefing will be held at Technology Park in Bentley on October 26 and interested businesses must register online by October 20. 

►Join us for breakfast to hear Premier Mark McGowan share his plans to diversify and strengthen WA's economy. Get your tickets here.