❓ Mr. Wyatt questions the Premier on the fairness of the GST distribution to WA, given federal cuts and WA's reduced share. The Premier defends the government's efforts to secure a better deal, criticising other states' lack of cooperation on reform.
AnsweredQoN 202Legislative Assembly
QuestionView source ↗
GOODS AND SERVICES TAX
202. Mr B.S. WYATT to the Premier:
I refer to the Premier's
numerous positions on the GST, from full support to demanding a 75 per cent
floor, a 50 per cent floor, and down to a 38 per cent floor, and the fact that
the Turnbull government is taking more from Western Australia than from any
other state government, being an amount in excess of $4 billion this year.
Given commonwealth government cuts to health, cuts to schools and a negative
GST impact of $4.4 billion, does the Premier really think that getting $500 million
in compensation from the federal government is a good deal?
Dr M.D. Nahan :
Better than yours.
Mr
B.S. Wyatt : We're not in government, silly boy.
The
SPEAKER : Treasurer, the question was not to you!
202. Mr B.S. WYATT to the Premier:
I refer to the Premier's
numerous positions on the GST, from full support to demanding a 75 per cent
floor, a 50 per cent floor, and down to a 38 per cent floor, and the fact that
the Turnbull government is taking more from Western Australia than from any
other state government, being an amount in excess of $4 billion this year.
Given commonwealth government cuts to health, cuts to schools and a negative
GST impact of $4.4 billion, does the Premier really think that getting $500 million
in compensation from the federal government is a good deal?
Dr M.D. Nahan :
Better than yours.
Mr
B.S. Wyatt : We're not in government, silly boy.
The
SPEAKER : Treasurer, the question was not to you!
AnswerView source ↗
The state government continues to
fight for a fair share of GST revenues for Western Australia.
Mr
D.J. Kelly : How's it going?
Mr
C.J. BARNETT : Well, we got half a billion dollars last year and we will
probably get much the same this year, so that is not bad.
Several members interjected.
The
SPEAKER : Thank you!
Mr
C.J. BARNETT : At the Council of Australian Governments conference last week
I was disappointed by the approach taken by the other state Premiers, and —
Several members interjected.
The
SPEAKER : Members!
Mr
B.S. Wyatt : So you talked about GST?
The
SPEAKER : Members!
Mr
C.J. BARNETT : I am trying to answer the member's question. Does he
want an answer or not?
I was disappointed. Given that
previous Premiers, particularly those of South Australia and New South Wales,
had advocated increases in the GST to 15 per cent—something I do not
and did not support—I think there was some room to move and the Prime
Minister put out an option for a share of income tax. It was very disappointing
that pretty well every state Premier except me dismissed that out of hand. How
can we expect to get genuine reform in commonwealth–state financial
relations if we just reject something without even debating it?
Mr
J.R. Quigley interjected.
The
SPEAKER : Member for Butler, I call you to order for the first time. I think
everybody is interested in this question and would like to hear the answer.
Mr
C.J. BARNETT : When this government came in, the GST share we were getting
was falling and we called for a floor of 75c. That would have been a fair
outcome for Western Australia and still would be a fair outcome. At one stage
we had the four big states all agreeing that we should allocate the majority—say,
90 per cent—of the GST pool on a per capita basis. That would be
fundamental reform because, let us face it, state spending is primarily on
health and education, which are driven by population. If the commonwealth
retained 10 per cent, which would be a bit over $5 billion, that could then
fund South Australia, Tasmania and the Northern Territory. That would be
sensible reform. But when the state Premiers—as they did—just
rejected any discussion about income tax and GST, they threw out the
opportunity to take that debate forward. They threw out the opportunity to go
forward. I think that was a backward step because there is no doubt that we
need to have more secure, reliable funding. It is not just the quantum of the
GST revenue; it is the stability of the GST revenue, and/or share of income
tax.
The opposition can carry on as it
wishes. We will continue to pursue this. I believe we will not get the result
we want; the result we want is per capita distribution, with some retained to
support the weaker states. That is the result that Western Australia—and,
at one stage, the other three large states—wanted. The opposition
rejects any concept of reform and goes back to throwing accusations on a monotonous,
regular basis. Never have I heard a sensible comment or suggestion from the
Leader of the Opposition on federal–state financial relations.
fight for a fair share of GST revenues for Western Australia.
Mr
D.J. Kelly : How's it going?
Mr
C.J. BARNETT : Well, we got half a billion dollars last year and we will
probably get much the same this year, so that is not bad.
Several members interjected.
The
SPEAKER : Thank you!
Mr
C.J. BARNETT : At the Council of Australian Governments conference last week
I was disappointed by the approach taken by the other state Premiers, and —
Several members interjected.
The
SPEAKER : Members!
Mr
B.S. Wyatt : So you talked about GST?
The
SPEAKER : Members!
Mr
C.J. BARNETT : I am trying to answer the member's question. Does he
want an answer or not?
I was disappointed. Given that
previous Premiers, particularly those of South Australia and New South Wales,
had advocated increases in the GST to 15 per cent—something I do not
and did not support—I think there was some room to move and the Prime
Minister put out an option for a share of income tax. It was very disappointing
that pretty well every state Premier except me dismissed that out of hand. How
can we expect to get genuine reform in commonwealth–state financial
relations if we just reject something without even debating it?
Mr
J.R. Quigley interjected.
The
SPEAKER : Member for Butler, I call you to order for the first time. I think
everybody is interested in this question and would like to hear the answer.
Mr
C.J. BARNETT : When this government came in, the GST share we were getting
was falling and we called for a floor of 75c. That would have been a fair
outcome for Western Australia and still would be a fair outcome. At one stage
we had the four big states all agreeing that we should allocate the majority—say,
90 per cent—of the GST pool on a per capita basis. That would be
fundamental reform because, let us face it, state spending is primarily on
health and education, which are driven by population. If the commonwealth
retained 10 per cent, which would be a bit over $5 billion, that could then
fund South Australia, Tasmania and the Northern Territory. That would be
sensible reform. But when the state Premiers—as they did—just
rejected any discussion about income tax and GST, they threw out the
opportunity to take that debate forward. They threw out the opportunity to go
forward. I think that was a backward step because there is no doubt that we
need to have more secure, reliable funding. It is not just the quantum of the
GST revenue; it is the stability of the GST revenue, and/or share of income
tax.
The opposition can carry on as it
wishes. We will continue to pursue this. I believe we will not get the result
we want; the result we want is per capita distribution, with some retained to
support the weaker states. That is the result that Western Australia—and,
at one stage, the other three large states—wanted. The opposition
rejects any concept of reform and goes back to throwing accusations on a monotonous,
regular basis. Never have I heard a sensible comment or suggestion from the
Leader of the Opposition on federal–state financial relations.
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