❓ Mr. Healy asks the Premier about the implications of securing a fairer share of GST for WA, contrasting it with the previous government's failure. The Premier outlines the GST deal, emphasizing debt repayment and responsible financial management.
AnsweredQoN 928Legislative Assembly
QuestionView source ↗
GST DISTRIBUTION —
STATE–FEDERAL ARRANGEMENT
928. Mr T.J. HEALY to the Premier:
First, I would like to acknowledge
on behalf of the member for Bicton the year 6 students from Attadale Primary
School and on behalf of the member for Perth the year 6 students from Trinity
College, which includes Mr Martin Tucker, the head of junior school—my
cousin!
I
refer to Western Australia's long and hard fight for a fair share of
GST, which after more than a decade has finally been resolved. Can the Premier
further advise the house what it means for the state now that a fairer share of
GST has been secured, something the previous Liberal–National
government failed to do and eight and a half years?
STATE–FEDERAL ARRANGEMENT
928. Mr T.J. HEALY to the Premier:
First, I would like to acknowledge
on behalf of the member for Bicton the year 6 students from Attadale Primary
School and on behalf of the member for Perth the year 6 students from Trinity
College, which includes Mr Martin Tucker, the head of junior school—my
cousin!
I
refer to Western Australia's long and hard fight for a fair share of
GST, which after more than a decade has finally been resolved. Can the Premier
further advise the house what it means for the state now that a fairer share of
GST has been secured, something the previous Liberal–National
government failed to do and eight and a half years?
AnswerView source ↗
I thank the member for the question.
Last Wednesday was a historic day for Western Australia; the federal Senate passed
into law the fairer share of GST for Western Australia legislation. It means
that we will never go back to the 30 cents in the dollar that we were receiving
a few years ago, which was obviously a shocking arrangement for Western Australia.
If we go back to the original debates around the GST 20 years ago in this
place, we would find that Eric Ripper and Geoff Gallop were both saying that
the deal that was being negotiated would not be in the state's interest
because our share would go down to these sorts of levels—and it was
proven right. I was here when that occurred and saw those debates, and they
were very forceful. I recall that the former Liberal government was very
forceful in its argument that Western Australia would get a good deal, but it
was wrong.
In the period since, we have seen a lot
of people work towards a better outcome. The people whom I would like to thank
most of all are the people of Western Australia, who have been firm advocates
for our state getting a better share and were prepared to vote on the issue. I think
the fact that they supported this government in March last year sent a message
nationally—a bit of an earthquake nationally, to be honest—that
Western Australia could not be taken for granted. I think that and the
Productivity Commission inquiry, which I wrote to the Federal Treasurer and
Prime Minister about, gave some impetus to this matter.
There are three parts to the deal. Western
Australia will receive a top-up to a 70c floor over the three years from 2019–20
to 2021–22. We estimate, at this point, that that will be $1.7 billion,
which we will allocate to the debt repayment account. The 70c floor funded from
within the GST system will be locked in from 2022–23 and then rise to
75c from 2024–25. The new equalisation formula for New South Wales or
Victoria, whichever is the stronger, will be implemented from 2021–22.
I do not regard this as a great
windfall. It is us getting a fairer share of what we deserve. We know that the
state has a difficult financial situation, not of our making—it is of
the former government's making—but we will devote our efforts
and this revenue to ensuring we are assisted by it. We will spend this money
wisely and responsibly. Lots of people out there, including the opposition, are
demanding we spend it on whatever is their desire on that particular day, but
we know that by putting it into the debt repayment account we will save $200 million
in interest over the next three years. That is our intention, because this
government is governing for the long term. We have achieved this outcome. We do
not intend to go on a spendathon like the last government; we intend to leave a
better future for all Western Australians.
Last Wednesday was a historic day for Western Australia; the federal Senate passed
into law the fairer share of GST for Western Australia legislation. It means
that we will never go back to the 30 cents in the dollar that we were receiving
a few years ago, which was obviously a shocking arrangement for Western Australia.
If we go back to the original debates around the GST 20 years ago in this
place, we would find that Eric Ripper and Geoff Gallop were both saying that
the deal that was being negotiated would not be in the state's interest
because our share would go down to these sorts of levels—and it was
proven right. I was here when that occurred and saw those debates, and they
were very forceful. I recall that the former Liberal government was very
forceful in its argument that Western Australia would get a good deal, but it
was wrong.
In the period since, we have seen a lot
of people work towards a better outcome. The people whom I would like to thank
most of all are the people of Western Australia, who have been firm advocates
for our state getting a better share and were prepared to vote on the issue. I think
the fact that they supported this government in March last year sent a message
nationally—a bit of an earthquake nationally, to be honest—that
Western Australia could not be taken for granted. I think that and the
Productivity Commission inquiry, which I wrote to the Federal Treasurer and
Prime Minister about, gave some impetus to this matter.
There are three parts to the deal. Western
Australia will receive a top-up to a 70c floor over the three years from 2019–20
to 2021–22. We estimate, at this point, that that will be $1.7 billion,
which we will allocate to the debt repayment account. The 70c floor funded from
within the GST system will be locked in from 2022–23 and then rise to
75c from 2024–25. The new equalisation formula for New South Wales or
Victoria, whichever is the stronger, will be implemented from 2021–22.
I do not regard this as a great
windfall. It is us getting a fairer share of what we deserve. We know that the
state has a difficult financial situation, not of our making—it is of
the former government's making—but we will devote our efforts
and this revenue to ensuring we are assisted by it. We will spend this money
wisely and responsibly. Lots of people out there, including the opposition, are
demanding we spend it on whatever is their desire on that particular day, but
we know that by putting it into the debt repayment account we will save $200 million
in interest over the next three years. That is our intention, because this
government is governing for the long term. We have achieved this outcome. We do
not intend to go on a spendathon like the last government; we intend to leave a
better future for all Western Australians.
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