Albanese and Chalmers given escape plan from 'costly mistake' of WA GST deal
The Productivity Commission finds the WA GST deal is a "costly mistake" that has led to "perverse" outcomes, and recommends it be scrapped.
The interim report from the Productivity Commission has called the Western Australia GST deal a costly mistake, recommending its scrapping. The deal, struck by Treasurer Scott Morrison eight years ago, has cost the federal budget $23 billion in its first six years, $22 billion of which went to Western Australia. The commission identified the deal as worsening state inequality and suggested alternatives to appease the state without scrapping the agreement entirely.
Prime Minister Anthony Albanese has not yet commented on specific recommendations, but New South Wales Treasurer Daniel Mookhey described the deal as an expensive failure. Queensland Treasurer David Janetzki called the system unfair and detrimental. Victorian Treasurer Colin Brooks agreed with the findings, and South Australian Treasurer Tom Koutsantonis suggested a genuinely fairer system.
Jim Chalmers, as the next Finance Minister, faces a decision: defend a broken system or support his home state and the national interest.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
