Will Labor or the Coalition have the guts to reverse ‘the worst public policy decision’ of the century? Don’t be daft
The Productivity Commission has picked apart Scott Morrison’s 2018 GST deal that gives Western Australia an outsized share of revenue. But there is no prospect of government action Anyone who knows Saul Eslake will tell you the respected economist is anything but a hothead. Likely to have forgotten more about the Australian economy and the state of the budget than most observers know in the first…
The Productivity Commission has concluded that Scott Morrison's 2018 GST deal with Western Australia is "the worst public policy decision of the 21st century thus far." The deal, which is expected to transfer an estimated $60 billion in tax revenue to the state over a decade, is deemed more unfair, expensive, and ineffective. The review found that the deal has reshaped the funding system, leaving taxpayers with a growing bill and undermining federal financial relations.
While Western Australia has benefited from the changes, the Commission warned that this has undermined the equitable distribution of resources among states and territories. The Premier of Western Australia, Roger Cook, dismissed the Commission's assessment as "dodgy, deceitful" and "dumb," seeking assurances that there will be no action from Canberra.
However, other state leaders, including the Premier of New South Wales, Chris Minns, and the Treasurer of Queensland, David Janetzki, urged the implementation of the report's recommendations. Politicians from both sides of the aisle have defended the deal, arguing that it is essential for maintaining a fair and equitable funding system for all states and territories.
Written by urgent.news from The Guardian Australia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
