❓ Mr. Wyatt questions the Premier on whether WA will receive higher GST returns following discussions with Liberal Treasurers and Premiers. The Premier criticises the current GST distribution system, advocating for a population-based allocation.
AnsweredQoN 66Legislative Assembly
QuestionView source ↗
GOODS AND SERVICES TAX DISTRIBUTION
66. Mr B.S. WYATT to the Premier:
I have a supplementary question. I
refer to the Premier's quote that the Liberal Treasurers and Premiers
have a broad in-principle agreement that the goods and services tax will be
progressively changed. The Victorian Treasurer was quoted as saying on 23 April
that ''Any fair changes to GST will see Victoria receive more, not less,
GST funding.'' Does the Premier anticipate Western Australia will
receive higher GST returns as a result of his breakfast with the Liberal
Treasurers and Premiers?
66. Mr B.S. WYATT to the Premier:
I have a supplementary question. I
refer to the Premier's quote that the Liberal Treasurers and Premiers
have a broad in-principle agreement that the goods and services tax will be
progressively changed. The Victorian Treasurer was quoted as saying on 23 April
that ''Any fair changes to GST will see Victoria receive more, not less,
GST funding.'' Does the Premier anticipate Western Australia will
receive higher GST returns as a result of his breakfast with the Liberal
Treasurers and Premiers?
AnswerView source ↗
The GST distribution dates back to
the 1930s. It may well have served the country —
Ms
R. Saffioti interjected.
Mr
C.J. BARNETT : The distribution through the Commonwealth Grants Commission—it
is good to see that the member is on the ball!
Several members interjected.
The SPEAKER : Member for Midland,
I call you for the first time and the member for Victoria Park for the third
time. Can members now let the Premier answer the question.
Mr
C.J. BARNETT : The grants commission process dates from the 1930s. It may
well have served Australia well during those formative decades but it does not
serve this country well now. It is a mysterious black box and is dysfunctional.
No-one understands it or can logically defend it. It is time for a modern
Australia in the twenty-first century to move to a more simple system. GST is
paid to the states. Therefore, it seems to me that the logical starting point
is to allocate the pool of GST collected on a population basis. It should
simply go to where the people are. If $4 billion or $5 billion is taken out of
that $50 billion pool, we can look after the smaller states. I ask
rhetorically: Why should Queensland suddenly get a boost in its GST share? Why?
In the current financial year,
Western Australia gets 55c in the dollar; it will get to 42c in the dollar for
the coming financial year; and it could get down to 17c in the dollar. Western
Australia is a growing state and is the strength of the Australian economy. We
have a high birth rate with high international and interstate migration. Last
year another 7 000 children turned up to our schools. As the Minister for
Health says, even though we are rebuilding the health system, there are huge
pressures on the emergency departments and the like. Why should the men, women
and children of Western Australia be denied their share of the GST? It is as
simple as that. It is a pity that the Labor Party is not more on side.
the 1930s. It may well have served the country —
Ms
R. Saffioti interjected.
Mr
C.J. BARNETT : The distribution through the Commonwealth Grants Commission—it
is good to see that the member is on the ball!
Several members interjected.
The SPEAKER : Member for Midland,
I call you for the first time and the member for Victoria Park for the third
time. Can members now let the Premier answer the question.
Mr
C.J. BARNETT : The grants commission process dates from the 1930s. It may
well have served Australia well during those formative decades but it does not
serve this country well now. It is a mysterious black box and is dysfunctional.
No-one understands it or can logically defend it. It is time for a modern
Australia in the twenty-first century to move to a more simple system. GST is
paid to the states. Therefore, it seems to me that the logical starting point
is to allocate the pool of GST collected on a population basis. It should
simply go to where the people are. If $4 billion or $5 billion is taken out of
that $50 billion pool, we can look after the smaller states. I ask
rhetorically: Why should Queensland suddenly get a boost in its GST share? Why?
In the current financial year,
Western Australia gets 55c in the dollar; it will get to 42c in the dollar for
the coming financial year; and it could get down to 17c in the dollar. Western
Australia is a growing state and is the strength of the Australian economy. We
have a high birth rate with high international and interstate migration. Last
year another 7 000 children turned up to our schools. As the Minister for
Health says, even though we are rebuilding the health system, there are huge
pressures on the emergency departments and the like. Why should the men, women
and children of Western Australia be denied their share of the GST? It is as
simple as that. It is a pity that the Labor Party is not more on side.
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