❓ Mr. Wyatt questions the Premier about GST distribution and online purchases, referencing the Premier's previous statements on WA's unfair GST allocation. The Premier acknowledges the issue and links support for lowering the online purchase GST threshold to a fairer GST distribution for WA.
AnsweredQoN 870Legislative Assembly
QuestionView source ↗
GOODS AND
SERVICES TAX DISTRIBUTION — ONLINE PURCHASES
870. Mr B.S. WYATT to the
Premier:
I refer to the increasing amount of GST being redistributed
to other states and the Premier's statement on 12 April 2012 in which
he said —
You've basically got
Canberra and east coast states stealing money from Western Australia and
spreading it amongst themselves.
(1) Does the
Premier support the proposal to reduce the threshold on which GST is paid on
online purchases from overseas?
(2) If so, has
the Premier obtained a guarantee of a fairer return of the extra GST that
Western Australians will pay as a result to stop the other states stealing
money from Western Australia?
SERVICES TAX DISTRIBUTION — ONLINE PURCHASES
870. Mr B.S. WYATT to the
Premier:
I refer to the increasing amount of GST being redistributed
to other states and the Premier's statement on 12 April 2012 in which
he said —
You've basically got
Canberra and east coast states stealing money from Western Australia and
spreading it amongst themselves.
(1) Does the
Premier support the proposal to reduce the threshold on which GST is paid on
online purchases from overseas?
(2) If so, has
the Premier obtained a guarantee of a fairer return of the extra GST that
Western Australians will pay as a result to stop the other states stealing
money from Western Australia?
AnswerView source ↗
(1)–(2)
I think it is well known throughout the country that Western Australia gets a
very poor deal on GST. GST came into existence as a replacement for the states
giving up their long-established share of company and income taxes—direct
taxation being a function of the states constitutionally. The GST has therefore
failed to deliver —
Mr B.S. Wyatt : Pity you signed that
deal.
Mr C.J. BARNETT : I did not sign it, Mr
Speaker.
The SPEAKER : Member for Victoria Park!
Mr C.J. BARNETT :
The GST has therefore failed to be the stable source of growth income, and this
state loses about $3 billion a year. There is an argument for changing the
threshold on online purchases. That would stop leakage, if members like, from
the GST and obviously it would be to the benefit of Australian domestic
retailers. We will have that discussion, and the Treasurer has already been
involved in discussions, but we would not be too inclined or too quick to agree
to those changes until there is some correction of the inequity of the
distribution of the GST. If we look at it from a totally selfish point of view,
and that is not the way we approach it, why would Western Australia make
changes that meant Western Australians would pay more GST if virtually all of
that money flowed to the other states? Maybe there is a bit of a bargaining
point.
I think it is well known throughout the country that Western Australia gets a
very poor deal on GST. GST came into existence as a replacement for the states
giving up their long-established share of company and income taxes—direct
taxation being a function of the states constitutionally. The GST has therefore
failed to deliver —
Mr B.S. Wyatt : Pity you signed that
deal.
Mr C.J. BARNETT : I did not sign it, Mr
Speaker.
The SPEAKER : Member for Victoria Park!
Mr C.J. BARNETT :
The GST has therefore failed to be the stable source of growth income, and this
state loses about $3 billion a year. There is an argument for changing the
threshold on online purchases. That would stop leakage, if members like, from
the GST and obviously it would be to the benefit of Australian domestic
retailers. We will have that discussion, and the Treasurer has already been
involved in discussions, but we would not be too inclined or too quick to agree
to those changes until there is some correction of the inequity of the
distribution of the GST. If we look at it from a totally selfish point of view,
and that is not the way we approach it, why would Western Australia make
changes that meant Western Australians would pay more GST if virtually all of
that money flowed to the other states? Maybe there is a bit of a bargaining
point.
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