The issue of GST distribution has long been a contentious topic for the Western Australian government. They have consistently argued that they do not receive their fair share of the GST pot. Prime Minister Anthony Albanese recently criticized the opposition for suggesting that GST payouts to states and territories be cut as a form of punishment for failing to meet housing targets.
During a visit to Western Australia, a key state for the upcoming federal election, Albanese expressed his concern about the potential impact of such a policy on the state’s $36.5 billion share of GST distribution. He made it clear that his Labor government is fully committed to ensuring a fair share for Western Australia, and he called on Peter Dutton and the Liberal Party to clarify their stance on the issue.
Albanese’s remarks were in response to comments made by Liberal Senator Andrew Bragg, the shadow assistant minister for home ownership. Bragg suggested that cutting GST distributions and imposing other penalties for non-compliance should be considered. He referred to a New Zealand policy that links housing completions to council funding as a possible model.
However, Albanese strongly criticized this approach, particularly highlighting the potential impact on Western Australia. He warned that the people of Western Australia and other states would be hit hard in areas such as education, health, TAFE, and infrastructure. He argued that it didn’t “make sense” to threaten states with GST cuts, as the money contributed to the GST pot belongs to the people.
Albanese also took the opportunity to criticize the Coalition for causing delays in building projects. He suggested that if the Coalition wanted more homes to be built, they should “get out of the way.”
In addition to his verbal criticisms, federal Labor has launched an attack ad on the GST distribution deal. The ad focuses on a 2018 agreement that guaranteed Western Australia a minimum of 70 cents-in-the-dollar in annual GST redistribution. The ad features quotes from high-profile Liberals, including former Prime Minister Scott Morrison, former Deputy Leader Julie Bishop, and former Minister Ken Wyatt, all of whom suggested that Peter Dutton opposed the deal at the time.
The issue of GST distribution is a sensitive one for the Western Australian government, and it is an important topic for voters in the region. It remains to be seen how the debate will unfold in the lead-up to the federal election, but both major parties will need to tread carefully in their approach to GST distribution to secure the support of Western Australian voters.
