What’s the point of the Federal Treasurer directing the Productivity Commission to prepare a report on the GST carve-up, when he has already told us he is going to ignore it?
In 2017 Prime Minister, Malcolm Turnbull, announced an investigation by the Productivity Commission, Australia’s peak independent advisory body on economic issues, into WA’s paltry GST dividend of just 34 cents in the dollar.
The Commission’s Draft Report, handed down in October 2017, recommended a shakeup that will significantly help Western Australia.
Federal Treasurer, Scott Morrison, has stated he is waiting on the Final Report, due next month, before doing anything.
But Mr Morrison also repeated the warning he previously issued when he announced the 2018/2019 GST carve-up, that the Federal Government “would not necessarily listen to the Productivity Commission.”
“The Government will receive it, but that does not mean it is the Government’s policy,” he said,
“The Government will still have a lot of work to do with the states about the direction the Commonwealth may take with the states.”
The Federal Treasurer’s latest statement clearly signals his government will be unable to deliver any reform to the flawed GST system because it will be immediately vetoed by all the other states.
When push comes to shove with the GST carve-up, Western Australia does not have one ally among the other state premiers. They have all gone on record as saying they will vigorously resist any change to the system.
If Scott Morrison won’t do anything without the consent of the other states, it will not happen. It is nothing but a complete ruse to shore up support from WA for the Liberal Party at the next election.
It is more proof that the only way to fix the GST is with a few independent members in the Senate.
All it took were independent senators, Derryn Hinch, Tim Storer, and two Nick Xenophon Team members to block the Liberal Party’s heralded tax cut bill, a centrepiece of the policy they took to the last election,
It shows that a small team in the senate can do big things… including reforming the GST system. If they can do it, so can we.”