Janine Freeman MLALabor Member for Mirrabooka

Your local Labor MP

Labor welcomes GST Review

Thursday 31 Mar 2011

In October last year, Mr Ripper called on the Prime Minister to review the system because it was unfair and punished Western Australia for its strong economic performance.


“The GST deal signed up to by Richard Court, with Colin Barnett’s support, in 1999 is unfair to Western Australia,” he said.


“There should be a floor of 90 per cent of the State’s per capita share.


“There is great need for reform. The Gillard Government’s review is a welcome first step.


“While the GST share WA currently receives is not the fault of the Federal Labor Government, it now has a responsibility to fix it.


“Premier Colin Barnett must also take responsibility. He was a senior member of the Court Government that accepted the current formula.”


As Treasurer in 2001, Mr Ripper commissioned a report into Commonwealth-State funding, which was rejected by then Prime Minister John Howard.


“The report found the current GST distribution system was not efficient or equitable,” he said.


Mr Ripper said the level of GST Western Australia received was no excuse for the Premier’s savage increases to household bills and soaring State debt.


“We are getting less GST because we are getting more royalties,” he said.


“Mr Barnett cannot use the GST share as an excuse for debt skyrocketing beyond $20billion or for his attacks on the cost of living of Western Australians.


“We are getting more from the GST than Mr Barnett originally predicted. It is no excuse for his own financial mismanagement.”