The GST distribution is broken and needs to be fixed – political, business and industry heads are join forces to battle for reform at the Join the fight to fix the GST event on October 31.
Guest speakers joining CCI’s Chief Economist Rick Newnham include Premier Mark McGowan, Social Services Minister Christian Porter and Fortescue Metals Group Non Executive Chairman and Chair of Minderoo Foundation Andrew Forrest.
“Most West Australians believe we’re getting a raw deal on GST, with WA generating more revenue than any other state,” Mr Newnham says.
“The issue is that instead of being able to keep this revenue to build new hospitals, roads, or grow our tourism industry, it is siphoned off to prop up other states who have not forged ahead and developed their economy, as WA has done.
“In the last year alone, WA has lost $4 billion in GST. That’s enough to double the number of teachers in WA public schools, to provide private health insurance for every West Australian, or to eliminate payroll tax in WA altogether.
Newnham says the $33.5 billion of GST WA will lose between 2000 and 2020 is enough to extend the Mitchell Freeway north to Geraldton and south to Albany, for an underground rail network linking Perth Airport, Fremantle and Joondalup, or for Elon Musk to build a hyperloop from Perth to Alice Springs.
“This CCI-hosted event is an opportunity for every West Australian, no matter what industry you come from, or what your political persuasion is, to come together as part of Team WA to say enough is enough – the time is now to fix the broken GST,” he says
The State Budget handed down in September revealed the devastating impact WA’s pitiful GST share is having on the economy.
In 2017-18 WA is expected to receive only 34.4 per cent of its population share of national GST revenue while contributing about $4.4 billion in revenue to other states.
The State Government estimates the state will lose about $18.5 billion in GST revenue over the five years to 2020-21.
A change in population estimates by the ABS resulted in a $2 billion write-down in GST payments over the forward estimates.
The GST share is expected to recover slowly over the forward estimates with the GST relativity increasing from 34 cents in every dollar raised to 62 cents from 2017-18 to 2020-21.
WA’s share will go from 3.5 per cent of the national pool to 6.5 per cent by 2020-21.
►Join Team WA to fight for GST reform at CCI’s breakfast forum on 31 October 2017. Get your tickets here.