{
  "id": 3453881,
  "title": "The PM has ruled out changing WA’s GST deal. But there’s another option to consider",
  "url": "https://urgent.news/2026/08/26/the-pm-has-ruled-out-changing-was-gst-deal-but-theres-another-option",
  "topic": "world",
  "section": "World",
  "published": "2026-08-26T06:35:24.000Z",
  "source": {
    "name": "The Conversation AU",
    "slug": "the-conversation-au",
    "url": "https://theconversation.com/the-pm-has-ruled-out-changing-was-gst-deal-but-theres-another-option-to-consider-290341"
  },
  "original_language": "en",
  "account": "Western Australia's Prime Minister Anthony Albanese has firmly stated that there will be no changes to the current GST deal while he is in office. However, a recent review by the Productivity Commission suggests that this arrangement may not be the most equitable solution. The Commission found that the current distribution of GST revenue has cost Australian taxpayers nearly A$23 billion over time, with most of that money flowing to Western Australia. The issue at hand is whether the current GST system properly addresses fiscal equalisation – the principle that states should have enough resources to provide similar levels of government services without some states needing higher taxes. My analysis suggests a middle-ground approach to fiscal equalisation. While the old system of full equalisation is a step in the right direction, it goes too far by compensating states for unique advantages like WA's mining royalties. My proposal is to maintain 70% of the current equalisation system, which would still benefit WA by giving it $2.4 billion more in 2026/27 than under full equalisation. This would still be a significant incentive for WA to maintain its mining industry without adding substantial costs to the federal budget or Australian taxpayers. Other states would see smaller adjustments under this 70% equalisation, with NSW and Queensland receiving about $1 billion more than full equalisation, while the other states and territories would receive about $1 billion less. This compromise would help address the concerns raised by the Productivity Commission while avoiding the negative effects of the special deal currently in place for WA. The Productivity Commission's interim report is open for public submissions until September 30, and I will be submitting this 70% fiscal equalisation proposal.",
  "summary": "The current deal costs Australians billions more than it should if we were fairly sharing money around the country. It’s not too late to have your say.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}