❓ The Premier defends WA's GST deal against challenges from other states, particularly NSW, highlighting WA's significant financial contribution to the nation and criticising NSW's financial management.
AnsweredQoN 277Legislative Assembly
QuestionView source ↗
GST
DISTRIBUTION
277. Ms C.M. COLLINS to the Premier:
I refer to the hard-fought efforts
of the McGowan Labor government to finally secure a fairer share of GST to Western
Australia.
(1) Can the Premier update the house on the growing
campaign by other states to overturn the fair and equitable GST deal
that this government secured for WA?
(2) Can the
Premier outline to the house how this government's record of
responsible financial management compares with that of other states, in
particular, New South Wales?
DISTRIBUTION
277. Ms C.M. COLLINS to the Premier:
I refer to the hard-fought efforts
of the McGowan Labor government to finally secure a fairer share of GST to Western
Australia.
(1) Can the Premier update the house on the growing
campaign by other states to overturn the fair and equitable GST deal
that this government secured for WA?
(2) Can the
Premier outline to the house how this government's record of
responsible financial management compares with that of other states, in
particular, New South Wales?
AnswerView source ↗
I thank the
member for Hillarys for the question.
(1)–(2) It is true that in 2018 we managed to secure a better
arrangement on the GST distribution for Western Australia that ensured that we
got a minimum of 70 � in every dollar we put in. We fixed the flawed
deal that was entered into by the Liberals and Nationals in 1999, state
and federal, that so badly damaged Western Australia's finances. The
deal that was entered into by the Liberals and Nationals meant that our share
hit 30� in the dollar and stayed below 38 per cent from 2012–13
onwards. I was very pleased that this government was able to secure a better deal. Under the deal, we still receive only 70 � in
every dollar we put in. At this point in time, New South Wales receives
96� for every dollar that it puts in. I find it very galling and disturbing
that the New South Wales government is now complaining and leading the charge
in trying to overturn Western Australia's fair share. It said in its
budget release yesterday that it will continue to advocate for overturning the
deal. I can confirm, Madam Speaker, that it does that regularly in many of the
meetings that I am involved in. The Berejiklian–Barilaro government is
undertaking that advocacy to overturn the GST arrangements.
The first claim that the New South
Wales government makes is that the deal means that other states are subsidising Western Australia. Give me a break!
According to the latest data, in 2018–19 Western Australia's
net contribution to the national revenue of the country—that put in
versus what we get back—was around $17.4
billion that we subsidised the other states. Per capita, that was $6 600 per Western
Australian. That is five times the net contribution of what New South
Wales puts in and 100 times the net contribution of what Victoria puts in. That
means that since 1986, Western Australia's total net fiscal
contribution has been more than $257 billion. We have provided $257 billion.
Throughout the pandemic, of course, we have been the backbone of the nation's
economy. We poured billions of dollars into federal coffers and ensured that
other states were the beneficiaries of all that effort on the part of the
state.
The
second claim by New South Wales is that it ''is inequitable and unfair
to other states'' that GST revenue is directed to Western Australia
when Western Australia is running a surplus. Essentially, because of this government's strong financial management,
we should be penalised. That is the argument it is putting. This is from the
New South Wales state government: in 2017–18, it had negative net debt.
It sold off all its assets, which meant it had negative net debt four
years ago. It is now projected to take that out to $103 billion. It sold all
its assets, went down to less than zero debt—in fact, it was in
positive territory—and now it is going to $103 billion. Instead of
taking responsibility and dealing with it, it blames Western Australia. New South
Wales should stop trying to rob our state and actually look after its own
budget.
Mr V.A. Catania interjected.
Mr M. McGOWAN : Here we have
one, Madam Speaker—Mr Barilaro and Mr Joyce's friend over
there; the National Party member, John Barilaro and Barnaby Joyce's
mate over there! He conducts himself in a very similar way to both those
gentlemen.
Mr V.A. Catania interjected.
The SPEAKER : Member for
North West Central, I ask you to stop interjecting, please.
Mr M. McGOWAN : We will
continue to take up the case against New South Wales and other states that are
continuing the undermine the GST arrangement that we secured on behalf of the
people of Western Australia, and we will continue to fight them.
member for Hillarys for the question.
(1)–(2) It is true that in 2018 we managed to secure a better
arrangement on the GST distribution for Western Australia that ensured that we
got a minimum of 70 � in every dollar we put in. We fixed the flawed
deal that was entered into by the Liberals and Nationals in 1999, state
and federal, that so badly damaged Western Australia's finances. The
deal that was entered into by the Liberals and Nationals meant that our share
hit 30� in the dollar and stayed below 38 per cent from 2012–13
onwards. I was very pleased that this government was able to secure a better deal. Under the deal, we still receive only 70 � in
every dollar we put in. At this point in time, New South Wales receives
96� for every dollar that it puts in. I find it very galling and disturbing
that the New South Wales government is now complaining and leading the charge
in trying to overturn Western Australia's fair share. It said in its
budget release yesterday that it will continue to advocate for overturning the
deal. I can confirm, Madam Speaker, that it does that regularly in many of the
meetings that I am involved in. The Berejiklian–Barilaro government is
undertaking that advocacy to overturn the GST arrangements.
The first claim that the New South
Wales government makes is that the deal means that other states are subsidising Western Australia. Give me a break!
According to the latest data, in 2018–19 Western Australia's
net contribution to the national revenue of the country—that put in
versus what we get back—was around $17.4
billion that we subsidised the other states. Per capita, that was $6 600 per Western
Australian. That is five times the net contribution of what New South
Wales puts in and 100 times the net contribution of what Victoria puts in. That
means that since 1986, Western Australia's total net fiscal
contribution has been more than $257 billion. We have provided $257 billion.
Throughout the pandemic, of course, we have been the backbone of the nation's
economy. We poured billions of dollars into federal coffers and ensured that
other states were the beneficiaries of all that effort on the part of the
state.
The
second claim by New South Wales is that it ''is inequitable and unfair
to other states'' that GST revenue is directed to Western Australia
when Western Australia is running a surplus. Essentially, because of this government's strong financial management,
we should be penalised. That is the argument it is putting. This is from the
New South Wales state government: in 2017–18, it had negative net debt.
It sold off all its assets, which meant it had negative net debt four
years ago. It is now projected to take that out to $103 billion. It sold all
its assets, went down to less than zero debt—in fact, it was in
positive territory—and now it is going to $103 billion. Instead of
taking responsibility and dealing with it, it blames Western Australia. New South
Wales should stop trying to rob our state and actually look after its own
budget.
Mr V.A. Catania interjected.
Mr M. McGOWAN : Here we have
one, Madam Speaker—Mr Barilaro and Mr Joyce's friend over
there; the National Party member, John Barilaro and Barnaby Joyce's
mate over there! He conducts himself in a very similar way to both those
gentlemen.
Mr V.A. Catania interjected.
The SPEAKER : Member for
North West Central, I ask you to stop interjecting, please.
Mr M. McGOWAN : We will
continue to take up the case against New South Wales and other states that are
continuing the undermine the GST arrangement that we secured on behalf of the
people of Western Australia, and we will continue to fight them.
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