Can Albanese erase his permanent marker GST pledge?
The electoral map that made surrendering to Western Australia irresistible to the prime minister has changed, but taking something back is always hard.
A recent report raising doubts about Prime Minister Anthony Albanese's pledge to maintain Western Australia's Goods and Services Tax (GST) deal has reignited a debate over federal-state relations. The Productivity Commission's interim review found that while WA benefited from the 2018 reforms, other states have required compensation payments, straining the Commonwealth budget.
The commission argued that the changes weakened the GST system's ability to ensure equal public services across Australia, suggesting a rollback to the pre-2018 system as a solution. This has sparked a federation clash, with all states except Western Australia backing the commission's recommendations. The premier of Western Australia, however, vowed to keep the deal, insisting it would remain.
While Labor's reliance on Western Australia's support in the 2022 election is acknowledged, the party is now facing a more competitive electoral landscape in other regions. The next national cabinet meeting is expected to be contentious, with discussions likely to include the contentious GST issue and the government's plan to legislate national standards for data centres, regardless of state input.
Despite the commission's interim findings, Albanese is not under immediate pressure to change his stance, as the final report won't be released until December.
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