Put WA First convenor, Chas Hopkins, said the recently announced lift in Western Australia’s GST revenue of 11 cents in the dollar is only 20 per cent of what it should be.
WA Chamber of Commerce and Industry Chief Economist Rick Newnham, has been quoted as saying the latest GST carve-up would only deliver an increase in Western Australia’s share from 34 cents in the dollar to 45 cents in the dollar in the coming financial year.
This amounts to an extra $900 million in the 2018/2019 financial year, giving the State more than $3.1 billion of GST.
“Every other state is receiving more than 88 cents,” said Mr Hopkins.
“Why should we be bulldozed into accepting anything less?
When Western Australia was in the middle of the mining boom the State’s GST revenue dropped to 30 cents in the dollar.
When it all ended in 2015, Western Australia’s economy went into a domestic recession but the GST revenue didn’t bounce back to pre-boom figures.
Despite assurances from Prime Minister, Malcolm Turnbull, that the Fiscal Equalisation formula would correct the anomaly within three years, it has been under 34 cents ever since.
Our economy has been in the perfect storm for the last three years,” said Mr Hopkins.
“Iron ore royalties have been in free-fall, State grants have decreased, we’re in a retail recession, and yet the Federal Government keeps ripping an extra $4.6b out of the State each year due to this grossly unfair GST scheme.
“It’s nothing more than an insidious tax grab driven by self-centered, eastern states governments.”
Mr Hopkins said Put WA First Our believes 88 cents in the dollar is the minimum Western Australia should be receiving which is the same as every other state.