Posted: 2024-05-08 04:31:39

Former WA premier Colin Barnett has called for the bulk of GST funds to be divided among states and territories on a population basis, a move that would benefit his own state but see the NT, Tasmania, South Australia and the ACT get much less than they do today.

The GST distribution is a hot-button political issue in the western state since the mining boom, when its enormous resource royalties have seen it get less under the federal system, which sees the GST carved up on the basis of population need rather than population size.

Mr Barnett, a longtime fierce critic of that approach, told the National Press Club it was "no longer fit for purpose". Instead, he proposed that each state get 90 per cent of its population share, with the remaining 10 per cent to be given to in-need jurisdictions at the federal government's discretion.

"Hold 10 per cent back and let the Commonwealth Grants Commission decide where it would go. WA will probably get nothing out of [that 10 per cent] and that is appropriate," he said.

Mr Barnett appeared at the Press Club alongside Saul Eslake, a Tasmanian economist who is a vocal defender of needs-based funding.

Simpler than the Morrison deal

The arrangement is a simpler alternative to a GST deal struck by then-treasurer Scott Morrison in the Turnbull government and honoured by the Albanese government.

That deal, designed to appease WA complaints that it was being denied its "fair share", amended the needs-based system by adding a floor.

View More
  • 0 Comment(s)
Captcha Challenge
Reload Image
Type in the verification code above