Time to end discrimination against Western Australia in GST distribution

11 June 2013

Peter Katsambanis, Member for North Metropolitan Region, has today called on Canberra to stop discriminating against Western Australia in the distribution of GST revenue.

“I have moved a motion in the Legislative Council highlighting the fundamental inequality of the current method of GST distribution between the states, which sees Western Australia receive less than half of what we would get on a per capita basis.” Mr Katsambanis said.

“The motion calls for a new system where a set percentage of GST would be distributed on a per capita basis to each state.

“This would significantly improve WA’s share of GST revenue which we could then use effectively to provide for the needs of citizens in our rapidly growing state.

“The balance of the GST revenue would be distributed in an agreed and target-based manner, creating a competitive environment which would drive productivity reforms and encourage future growth across the whole of Australia.

“The proposed new distribution system would end the current bias against states like WA that continue to drive our nation’s economy.

“Importantly, the model I have proposed would stop rewarding failure and would give all states an opportunity to be rewarded for undertaking important and fundamental structural reform,” Mr Katsambanis said.

“It’s time Canberra stopped eroding the compact of equality between the states on which our Federation was founded.

“The longer the discrimination against WA continues in respect of GST, the more fragile our Federation becomes.” Mr Katsambanis added.