In Business

Western Australia Premier Colin Barnett

Premier Welcomes Review Of GST Arrangements

Victor P Taffa

Premier Colin Barnett has welcomed today’s announcement by Prime Minister Julia Gillard that a review into the distribution of the Goods and Service Tax (GST) would be completed in time for the 2014-15 budget year.

The review also has scope to examine the Premier’s idea of a ‘floor’ in the GST of 75 cents.

“I am convinced the current arrangements for distributing the GST are unsustainable and the Prime Minister is aware of my views.” Premier Barnett said.

“West Australians are willing to assist other weaker States through the GST carve up but we are not prepared to cop a return of just 68 cents for every GST dollar we pay, let alone the scenario we face in 2014-15 when we are forecast to receive less than 40 cents back for every dollar.

 

“The Liberal-National Government has long argued that there should be a floor at about 75 cents in the dollar. It would give WA more certainty over revenue and allow us to make the long term investment decisions a State like Western Australia needs.” Premier Barnett said.

“If we had a 75 cent floor, the State would retain an additional $5.6 Billion in GST revenue over the next four years and would allow us to get on with the business of powering Australia’s economy.”

“The choice of Hon Nick Greiner, the Hon. John Brumby and Mr. Bruce Carter to lead the review is appropriate and I have confidence in their ability to approach the matter in an open and objective way.”

“I look forward to the outcome of the review and will work with the Prime Minister and other State and Territory leaders to implement these needed reforms.” Premier Barnett said.

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