WA is losing more in GST revenue than it is receiving in mining royalties according to Put WA First convenor, Chas Hopkins.
A Minerals Council of Aust¬ra¬lia assessment in late 2017 concluded that WA would have been better off financially if it had no iron-ore royalties.
$4.52billion of our GST revenue¬ will be stripped off WA and given to eastern states in 2018, due to the Federal Government’s Fiscal Equalisation formula,” said Mr Hopkins.
“This unbelievably unfair system compensates states that don’t have a mining industry with our GST money.
“On top of that, next year’s royalties are projected to earn only $4.36billion while they will be taking $4.52billion of our GST.
“In effect, the Federal Government is hijacking a sum equal to all of WA’s mining royalties plus an extra $160millon on top.”
The Productivity Commission is currently investigating whether the GST distribution formula cre¬ates disincentives to reform.
The Minerals Council of Australia’s submission to the Commission supports the view that ¬the system rewards states that discourage mining while punishing those that exploi¬t them.
Mr Hopkins said since the GST was introduced in 2001, distributions to all states have more than doubled as the GST pool has grown, except in WA, where they have fallen.
Chas Hopkins is a former Lord Mayor of Perth who recently processed the registration of the Put WA First Party with the Australian Electoral Commission as a political party formed to fight for a fair GST dividend for WA.