The Chamber of Minerals and Energy of Western Australia (CME) strongly opposes proposed changes to the GST carve-up that threaten to damage the nation’s best-performing economy and leave every Australian worse off.
The Commonwealth Government should immediately reject the Productivity Commission’s recommendations and re-affirm its self-described “rock solid” commitment to the 2018 reforms.
The Productivity Commission’s interim report, released today, recommends moving back to the pre-2018 GST distribution system accompanied by as-yet-undetermined changes to the assessment of mining revenue.
CME Chief Executive Officer Aaron Morey said Western Australia already receives the equal lowest GST share of any State or Territory, and the proposed changes would send WA back even further.
“This proposal is unfair, unbalanced and out of touch,” Mr Morey said.
“The Productivity Commission is advocating for a return to a system that it itself found punishes States that choose to invest in unlocking their natural resources and developing industries that underpin jobs and national prosperity.
“Since 2018, those industries have only become more important to Australia’s strategic interests.
“Some people on the east coast think extracting, processing and shipping commodities is as easy as ordering a latte on Collins Street. I’ve got news for them.
“Under the current carve-up, WA remains a substantial net contributor to the Federation. A significant share of our GST continues to flow across the Nullarbor and CME member companies alone paid $37.3 billion in corporate tax and petroleum resources rent tax in 2023-24.
“WA also produces almost half of Australia’s goods exports and around 17 per cent of national economic output, despite accounting for only 11 per cent of the population.
“Punching above our weight should not be an excuse for WA to be slugged with the responsibility of propping up every eastern states budget.”
Mr Morey highlighted the Albanese Government had repeatedly guaranteed WA would not be disadvantaged by changes to the GST distribution.
“I call on the Prime Minister and Treasurer to re-commit to protecting WA’s fair share of the GST and ruling out the changes suggested by the Productivity Commission,” he said.
“Stable and predictable GST revenue helps the WA Government plan and invest in ports, roads, electricity networks, water infrastructure and other enabling infrastructure needed to support economic growth.
“That infrastructure is essential to unlocking the next generation of mining, downstream processing, energy and manufacturing projects.
“The benefits do not stop at Western Australia’s borders. Investment in WA supports businesses and workers across Australia, grows exports and generates substantial company and personal income tax revenue for the Commonwealth.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382