- Cook Government lodges its formal submissions to Productivity Commission's inquiry into 2018GST reforms
- State's submissions demonstrate WA's GST is working for Australia - powering not just WA's economy, but the national economy
- Government submission backed by 6,000 strong WA People's Submission highlighting strong community support to keep GST share fair
- 2018 GST reforms enable Cook Government to invest in the critical economic infrastructure that supports local jobs and national productivity
The Cook Government's fight to keep the GST share fair has reached a significant milestone, with the State lodging its formal submissions to the Productivity Commission.
WA Labor secured reforms to the GST arrangements in 2018, which delivered the State a guaranteed 75-cent GST floor. Before the reforms, WA received just 30 per cent of its population share in 2015-16.
This deal is currently under review by the Productivity Commission, which has been calling for submissions from across the nation.
The Cook Government's formal submission has been bolstered by the WA People's Submission, which has compiled the views of more than 6,000 people.
The report follows a national campaign launched by the Cook Government in November to educate the community on what WA's GST deal delivers for the nation.
Together, WA's submissions set out a clear message - the 2018 GST reforms are working for both WA and the nation and must be retained.
The State Government's submission argues that even with the 2018 reforms, WA continues to contribute more than its fair share to the federation - subsidising the other states, while powering national economic growth.
Relative to the State's population share, Western Australia still provides a GST subsidy to the other states and territories of around $2.5billion per year - the largest per capita GST subsidy of any state.
The submission highlights the current GST deal strikes the right balance between supporting smaller jurisdictions and boosting national productivity but not penalising economically successful states like WA.
Despite having around 11 per cent of the population, Western Australia remains Australia's most productive state - producing almost half of the nation's goods exports and around 17 per cent of national economic output.
Unwinding the 2018 reforms would undermine WA's ability to invest in the critical economic infrastructure that powers the national economy including ports, roads, energy and water, as well as social infrastructure and services that support WA communities.
Certainty in the GST arrangements is critical to sustaining these longterm investments that support jobs and industries of the future, as well as national economic growth.
Other states and territories have been $30.8 billion better off than expected since the 2018 reforms were introduced, particularly due to higher iron ore prices and royalties that have effectively been redistributed to other states through the GST.
At the same time, the cost of the reforms to the Commonwealth have been far outweighed by increased company tax collections and other revenues due to the strong performance of the WA resources sector.
The People's Submission is a result of the nationwide 'WA's GST is working for Australia' campaign, which called on Western Australians to show their support for the GST reforms, while educating the rest of the nation on the contributions WA makes to the national economy.
A total of 6,066 people from metropolitan and regional areas, spanning all age demographics participated in the 'Have your say' survey, with 95 per cent voicing their support for WA keeping its current share of the GST.
Respondents highlighted the importance of stable GST funding to enable the State Government to continue its record investment in infrastructure and services including hospitals, schools and regional and remote communities.
This overwhelming level of community support reinforces the case for maintaining the 2018 reforms that are fair, stable and working for the entire nation.
The Cook Government's submissions can be viewed at wa.gov.au/GST . All submissions made to the Productivity Commission can be viewed at the Commission's website.
The Productivity Commission will release its interim report in August.
As stated by Premier Roger Cook:
"Western Australia's GST is working for Australia - the 2018 reforms support investment certainty in the State that powers the national economy, while still ensuring smaller states and territories are supported.
"Our submission to the Productivity Commission highlights the reforms are operating as intended - delivering stability, improving incentives to invest and grow, and supporting national productivity.
"I want to thank everyone who has joined this fight and helped contribute to the People's Submission report.
"Your feedback demonstrates our community's shared priorities of not just creating jobs and delivering healthcare and housing to all Western Australians but continuing to support the national economy too."
As stated by Treasurer Rita Saffioti:
"Western Australia has worked hard to become the economic powerhouse of the nation and create the wealth that benefits all Australians.
"Without the 2018 GST reforms, we risk $6 billion being ripped from our State every year, that would otherwise be invested into critical economic infrastructure that drives the national economy and creates local jobs.
"These submissions show Western Australians are passionate about protecting their fair share of the GST so we can continue investing in our State's future, with more than 6,000 people lending their voices to our fight.
"Western Australia's message to the Productivity Commission is clear and it's united - keep the GST share fair and don't put the brakes on the national economy.
"Thank you to everyone who has taken the time to contribute their views to this campaign, we will never stop fighting for Western Australia."
