Architect of current GST system says it is 'working exactly as intended'
Former WA senator Mathias Cormann has defended the current GST system as fit for purpose, after a landmark interim report by the Productivity Commission found the carve-up was costly and unfair.
Former Western Australian Senator Mathias Cormann has voiced his support for the current GST system, stating it operates precisely as the architects envisioned. This stance comes in response to an interim report by the Productivity Commission, which suggested scrapping the 2018 WA GST deal due to its perceived cost and unfairness.
Cormann, who served as federal finance minister in the Morrison government that approved the deal, explained that the agreement addressed the "unbelievable unfairness" faced by Western Australia, particularly in relation to its mining industry. The 2018 GST deal ensures that Western Australia receives a larger share of GST revenue annually compared to other states under the standard national formula.
This adjustment was intended to help states like Western Australia that rely heavily on mining revenues. Despite its critics, Cormann believes that while the GST system is essential for supporting equal service delivery nationwide, achieving the right balance is crucial—balancing the needs of Western Australia with those of the rest of the country.
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