Leader of The Nationals WA Shane Love MLA said Prime Minister Anthony Albanese must give Western Australians an unequivocal guarantee today that he will not cut WA’s GST share and will reject any change that leaves Western Australia worse off.
“The Productivity Commission review must not become an excuse to unwind, weaken or circumvent the 2018 GST reforms,” Mr Love said.
“There should be no change to WA’s GST deal, whether directly, by stealth, or through a new formula that reduces WA’s funding while claiming to preserve the GST floor. Western Australia already carries an extraordinary share of the national economic load. WA produces more than 45 per cent of Australia’s goods exports despite having only around 11 per cent of the nation’s population.”
Mr Love said that it’s a well-known fact that much of that wealth is generated in regional Western Australia, particularly the Pilbara and Goldfields.
“The Pilbara is the engine room of Australia’s iron ore industry, with Pilbara Ports handling around 81 per cent of the nation’s iron ore trade, while the Goldfields remains one of Australia’s most significant mining and export producing regions,” he said.
“These regions are not simply regional economic centres. They are nationally significant production hubs that generate exports, jobs, company profits and government revenue across Australia.
“They do not operate for free. They require enormous and ongoing investment in roads, ports, power, water, housing, health services and community infrastructure to support the workforce and industries that keep the national economy moving. You cannot rely on regional Western Australia to generate wealth for the nation and then take away the revenue WA needs to keep those regions productive.”
Mr Love said it was unreasonable to expect regional WA to continue generating wealth for the nation while reducing the revenue needed to sustain those industries and communities.
“Western Australia accepts that being part of the Federation means supporting other states and territories. We already do that substantially,” he said.
“WA Treasury estimates Western Australia made a net fiscal contribution to the Federation of around $39 billion in 2023-24. Even with the current GST reforms, WA remains a major net contributor to the rest of the country.
The current arrangements are not excessive. They simply stop Western Australia from being treated unfairly for the strength of its economy.
Mr Love said it made no economic sense for Canberra to encourage Western Australia to invest billions of dollars developing industries that generate national income, only to penalise the State when those investments succeed.
“Prime Minister Albanese regularly describes Western Australia as a driver of the Australian economy,” he said.
“If he genuinely believes that, he should back those words with a clear commitment that WA will not lose a dollar from its GST share. The Prime Minister cannot praise Western Australia for driving the national economy and then allow Canberra to raid our GST share.”
Mr Love said any recommendation arising from the Productivity Commission review should be judged against a simple test.
“Does Western Australia lose money or lose the capacity to invest in the industries and communities that underpin the national economy? If the answer is yes, then it is a bad deal for Western Australia and ultimately a bad deal for Australia.”
Mr Love said The Nationals WA would oppose any proposal that reduces Western Australia’s GST share or undermines the State’s capacity to invest in regional industries and communities.
“The 2018 reforms must remain the floor, not become the starting point for another raid on Western Australia,” he said.