Resources Minister King weighs in on WA GST furore

Resources Minister Madeline King has expressed confidence that Western Australian Premier Roger Cook will not see any changes to the state's GST deal. This assurance came a day after a Productivity Commission interim report suggested a reduction in Western Australia's share of the GST. Premier Cook had previously called the Productivity Commission report an "attack on Western Australians" and dubbed its authors "east-coast clowns."

King, addressing voters as she officially launched her campaign for the competitive suburban seat of Secret Harbour, reiterated that the Albanese Labor government would always ensure Western Australia receives its fair share of the GST and supports the state's ambitions in the resources sector. She emphasized that the current arrangements would not be altered, citing Prime Minister Anthony Albanese's assurances to both Cook and her own office.

The interim report, released on Friday, proposed scrapping the 2018 changes to the GST distribution, arguing that Western Australia was the only state to benefit from the changes and that it was a "costly mistake." Prime Minister Albanese has endorsed the arrangement for at least until 2029, with his government awaiting the final report before commenting on specific details.

King criticized the report as "unbalanced, highly speculative and clearly incorrect," highlighting the significant contribution the resource-rich state makes to the nation's economy. Premier Cook echoed this sentiment, expressing his belief that Western Australia is the "engine room of the national economy" and that the government is backing the state's position on the GST.

The current deal, established by former Treasurer Scott Morrison, ensures that Western Australia receives a larger share of GST revenue annually compared to what it would receive under the national formula, which aims to provide more financial support to states with higher needs and lower financial means.