PM faces further GST backlash after standing by lucrative WA deal
Anthony Albanese is still facing pressure from Labor and Liberal states to overhaul the GST carve-up after declaring he was sticking by Western Australia's lucrative funding deal.
Prime Minister Anthony Albanese has faced increased criticism over a GST carve-up deal with Western Australia, despite his promise not to alter the 2018 arrangement. The 2018 deal increased Western Australia's share of the GST, but the Productivity Commission has urged the government to abandon it, citing cost overruns and inequality as reasons.
Albanese will meet with state leaders at national cabinet this week, placing him in direct conflict with premiers advocating for a GST reform. The Productivity Commission's interim report concluded that the deal had cost billions more than anticipated and further widened the gap between states. Victoria's Treasurer Colin Brooks and Queensland's LNP Treasurer David Janetzki criticized the existing funding arrangements, stating that the inequity of GST distribution and the federal government's cost shifting to state governments threaten the federation's integrity.
Tasmanian Treasurer Eric Abetz warned of significant GST revenue cuts for his state if the 2018 decision stood. Albanese assured Western Australia of its funding and promised no changes while he remained prime minister, despite the commission's interim findings. The prime minister's pledge was met with support from Western Australia Premier Roger Cook and Federal Liberal frontbencher Andrew Hastie, who pledged to defend WA's interests.
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