GST Rip-Off set to blow out by additional $500 million, Crook
Posted on Monday, 20 February 2012
WESTERN Australia’s GST Rip-Off is set to blow out by an additional $500 million by 2012-13, as the State’s GST return drops to a record low.
Nationals WA Federal Member for O’Connor, Tony Crook MP, has blamed both major parties for the $500 million loss – the equivalent of constructing five major regional hospitals.
Reports in the West Australian and the Australian Financial Review in the past week have vindicated Mr Crook’s calls to “reverse the GST rip-off.”
“This loss absolutely highlights the need for every State and Territory to have a 75 per cent floor on GST returns – as I called for in Parliament last year.”
Mr Crook said WA’s GST relativity was expected to plummet to 55 per cent in 2012-13, the lowest of any State since the GST was introduced.
“Last year I raised this exact issue in Parliament, only to have it dismissed by both major parties.
“This Federal Government is clearly more interested in increasing WA’s tax burden through the Mining Tax and the Carbon Tax than addressing the real issue of GST returns.”
Mr Crook said the people of WA had been let down by their elected representatives on this issue.
“My Private Member’s Motion to safeguard WA’s economic future was voted down by WA’s own Federal MPs, who chose to toe the Party Line rather than stand up for their State on this multi-billion dollar issue.”
Mr Crook said a GST floor would have delivered $1.8 billion back to WA in 2013-14, and $2.5 billion in 2014-15.
Mr Crook’s calls for a GST floor have been openly supported by the WA State Parliament; who voted unanimously in support of his Private Member’s Motion.
Mr Crook said the WA Premier had every right to be disappointed with the Federal Government on this issue.
“But he should be just as disappointed with WA’s Federal Liberal MPs who have shown him no support on this critical WA issue.”
Mr Crook said WA’s GST rip-off was unlikely to be resolved in the near future, with the issue being deferred to the Federal Government’s GST Review Board.
“There are no WA representatives on this Board, and it is unlikely that any changes recommended by the Board to assist WA will be supported in Parliament.
“Both Parties think Australia stops when you reach the Nullarbor. They think WA is just a money-pit to fund their Eastern State’s projects.”
The GST Review Board is expected to table an interim report later this week and a final report by September.
Further information on WA’s GST rip-off can be found online at www.tonycrook.com.au.