GST motion on the table to Reverse the Rip-Off, Crook
Posted on Wednesday, 17 August 2011
NATIONALS WA Federal Member for O’Connor, Tony Crook MP, has tabled a motion in Parliament this week to reverse Western Australia’s GST rip-off.
The motion - calling on the Federal Government to establish a 75 per cent floor on GST relativities – was supported by Queensland’s Member for Kennedy Bob Katter MP.
Mr Crook said WA is forecast to lose billions of dollars unless a floor is introduced.
“A 75 per cent floor would deliver an estimated $1.8 billion to WA in 2013-2014 and an estimated $2.5 billion in 2014-15,” Mr Crook said.
“The lost GST revenue in 2014-15 alone would be equivalent to funding the development of the new Albany Health Campus, the State’s largest regional hospital development, 14 times over.”
Mr Crook said WA currently received less GST relative to its population than any other state since the GST was introduced – and forecasts suggest this rip-off will only get worse.
“WA’s GST relativity in 2010-11 saw the state receiving only 68 per cent of per capita revenue, while no other state received less than 91 per cent.
“Current estimates suggest WA’s downward trend in GST revenue share will plummet to just 33 per cent by 2014-15.
“This is grossly unfair and inequitable and I intend to take this motion to Parliament to get a fair deal for WA.”
Mr Crook said establishing a 75 per cent floor on GST relativities would prevent any state from being unfairly ripped-off through GST distribution – while still allowing WA to contribute to the Commonwealth.
“It is fundamental that this motion still allows the Commonwealth the ability to fairly distribute a significant portion of GST revenue between the states and territories,” Mr Crook said.
“There has to be some limit to this rip-off, and a GST floor is the fairest way to do so.
“I am now calling on all Western Australian members of Federal Parliament to properly represent their constituents and properly represent their State by supporting this motion.”
The Leader of The Nationals WA, Hon Brendon Grylls MLA and the WA Premier Hon Colin Barnett MLA have indicated their support for establishing a floor on GST relativities.