2 May 2014

National Commission of Audit supports call for WA to receive fairer share of GST

Peter Katsambanis MLC, Member for North Metropolitan Region, has welcomed the recommendation from the National Commission of Audit (NCOA) that WA should receive its fair share of GST revenue.

Mr Katsambanis lodged a submission to the NCOA in late 2013, outlining a series of reforms which are urgently needed to repair the fraying Federation. Central to this submission was the need to change the method of GST revenue distribution to a per capita basis.

“I’m very happy that the National Commission of Audit has accepted the basis of my submission and recommended that GST revenue should be shared between the states on a per capita basis.” Mr Katsambanis said.

Recommendation 9 of the NCOA’s first report details further reforms which would address the horizontal fiscal imbalance. Changes made would ensure that no state would be worse off under any changes to the current Commonwealth Grants Commission method of distributing GST revenue.

“It’s very important for the future of our Federation that the Commonwealth Government leads all states to agreement on Recommendation 9.” Mr Katsambanis said

“Over the next four financial years, Western Australia is set to miss out on around $20 billion of GST revenue that we would receive if distribution was made on a per capita basis.

“These funds could be invested to address the growing infrastructure needs of our vast state and rapidly growing economy, in addition to reducing debt and reforming our state taxation system.

“In Perth’s northern suburbs, a fair share of GST revenue would particularly enable the WA Government to expand the rail and road network to meet the needs of our growing population.

“I look forward to continuing the campaign to see Western Australia treated fairly in GST revenue distribution. I want to see us work with all states to create a more competitive nation where economic reform is encouraged.

“Adoption of recommendation 9 from the NCOA would be a great first step to achieving this goal.” Mr Katsambanis concluded.

A copy of Mr Katsambanis’ submission to the National Commission of Audit is available here: http://www.ncoa.gov.au/docs/individuals/submission-katsambanis.pdf?v=1

Copies of the various reports presented by the National Commission of Audit are available here: http://www.ncoa.gov.au/