News & Events
Historic win for WA as Liberal’s GST floor becomes law
Western Australia will no longer face crippling GST returns as low as 30 cents in the dollar following the passage of the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Bill 2018 in the Senate.
Opposition Leader Mike Nahan said today was an historic day for the State.
“These much-needed reforms have been a long time coming, thanks to the persistence of the Federal Liberal Government are now a reality,” Dr Nahan said.
“These are changes that have been championed by WA Liberals, State and Federal for many years, in the face of resistance from Eastern States politicians and outright opposition from WA Labor until they were elected to Government last year.
“WA Liberals have long argued that the formula was broken and needed to be fixed.
“Like any significant reform, change takes time to win the critics and naysayers over.
“Today, those reforms have finally gone through the Senate and WA is the main beneficiary of those changes.”
The legislation means that, from today, WA and every other state has an assurance that their GST return will not fall below a floor of 75 cents.
Dr Nahan said State governments could now make decisions to encourage investment and development in their state without facing penalties in the form of the GST going to those States unwilling to encourage investment and development.
“Western Australia will also now receive significant financial windfalls over the next decade which were not previously forecast,” Dr Nahan said.
“The funding we will be receiving both secures our GST revenues for the future but also pays some compensation for the losses we incurred over the last decade.
“I urge the McGowan Government to use these windfalls to pay down debt and ease the financial pressure it has imposed on West Australians families with increases fees and charges since its election.
“I congratulate all sides of Federal Parliament for ensuring the speedy passage of these important reforms through Parliament and I particularly thank Scott Morrison who, first as Treasurer and then as Prime Minister, delivered this historic reform for Western Australia.”