The Commonwealth Grants Commission has released its recommended GST relativities for 2018-19. Western Australia is set to receive just 47.3 per cent of its population share of GST revenues.
As a result, in 2018-19 alone, WA will be short-changed to the tune of $3.6 billion. WA’s total shortfall now mounts to more than $30 billion since the GST was introduced.
in 2017-18, WA received only 34.4% of its population share of national GST revenue – and that was a slight increase from an all-time low of 30%.
At the same time as Western Australia is being short-changed by billions of dollars, most other States and Territories will continue to receive more than their population share. For example, the Northern Territory will receive 426 per cent of its population share, Tasmania 177 per cent and South Australia 148 per cent.
The latest GST figures are further proof of the need for GST reform.
The Productivity Commission’s final report into the GST system, initially due in January, was delayed and is to be handed to the Commonwealth Treasurer in May.