Turnbull Government has ordered an inquiry into GST distribution

WA has scored a victory in its battle to receive a fair share of GST, with the Turnbull Government ordering an independent inquiry into the scandal which robs our State of billions of dollars.

The model takes money from rich States such as WA, which create wealth, and gives it to poorer States, such as SA, Queensland and Tasmania, to balance out “inequality”. The WA Government argues the model penalises the west for its strong resources industry while rewarding States which knock back mining projects.

Bureaucrats at the Commonwealth Grants Commission recently determined that next financial year WA will receive a pitiful return of just 34¢ in the dollar, ripping $4.5 billion out of the State at a time when it has the worst-performing economy in the country.

After questions from The Sunday Times, Finance Minister Mathias Cormann confirmed the inquiry, which will hold hearings and report back to the Federal Government by January 31, 2018. The timing of the review ensures the GST will be a key battleground in the 2019 Federal election.

“We want the Productivity Commission to have a thorough look at the impact current GST-sharing arrangements have on the national productivity and economic growth. We need to ensure that all States have the right incentives to grow and develop their economies so that we can optimise national productivity and economic growth in the process,” the senator said.

Source: Turnbull Government has ordered an inquiry into GST distribution | Perth Now