Shadow Treasurer Wyatt questions the Treasurer on WA's GST stance regarding online transactions under $1000, given conflicting statements. The Treasurer clarifies WA's strategy to leverage GST expansion for a larger share of overall GST revenue.

AnsweredQoN 608Legislative Assembly
Asked
13 August 2015
Portfolio
Treasurer

QuestionView source ↗

GOODS AND SERVICES TAX AGREEMENT — ONLINE TRANSACTIONS
608. Mr B.S. WYATT to the Treasurer:
I refer to the Treasurer's statement reported in The West Australian on 9 June this year
that —

we will not agree to any changes to the GST—including for online
shopping—unless there is a rigorous, firm decision to alter the GST
sharing arrangements,''
I also refer to the communique agreed to by the Premier, the Prime Minister
and other state Premiers that states —

there was agreement in principle by Leaders to broaden the GST to cover
overseas online transactions under $1000.
(1) Has there been a rigorous, firm decision by all leaders to alter
the GST sharing arrangements?
(2) If so, what is the nature of that sharing and by when will it be
implemented?
(3) If not, why then did the Premier agree to this?
Mr C.J. Barnett : Ask him!
The SPEAKER : Premier, the Treasurer is answering.

AnswerView source ↗

(1)–(3) I have been waiting for that
question. The shadow Treasurer should really do some work on these issues
before he goes out and comments. We have agreed to two alterations to the GST
share coverage. One concerns the sale of electronic goods such as videos, CDs
and other things on the web. We have expanded it to cover that. It is going to
be worked out. Right now, goods sold online have a $1 000 threshold. We agreed
to lower that. We still have to look at where it will go and how to deal with
that. We did hold out before to put pressure on the other parties—the
commonwealth and the states—to focus on our problem with the share;
that is, we get 30 per cent rather than 100 per cent. I knew all along that if
coverage of the GST were expanded, all states, including Western Australia,
would get their full per capita share. That is the rules. I have known that for
a long time. I held out before to use it as a lure, not for changing the
sharing arrangement for the case of a lower-value threshold for online sales
but for the bigger picture of getting our overall share increased from 30 per cent
to, hopefully, 100 per cent. The shadow Treasurer should have done his work. I
gave him enough time. I did not say anything when he said that I did not know
what I was doing or that the Premier and I were giving something away. The way
the GST and the sharing arrangement works is that if the range of coverage of
the GST is expanded, each state, including WA, will get its full per capita
share. I do not need an agreement from the states to do that because that is
what exists now.

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