PM ‘signed people’s body parts’ promising not to reverse controversial GST deal
Prime Minister Anthony Albanese has promised not to reverse Western Australia’s generous GST deal even after a report found it has been a “costly mistake”.
At a press conference in Perth on Monday, Albanese reassured voters he would not accept the Productivity Commission interim report’s recommendation to remove then-treasurer Scott Morrison’s GST arrangement.
Prime Minister Anthony Albanese assures WA voters he would not change the state’s generous GST deal. Matt Jelonek
“What I believe is, very clearly, there will be no change to WA’s GST arrangements whilst I’m prime minister,” he said.
“That is my view. That has consistently been my view.”
Pressed on the matter several times, Albanese pointed to the moment he signed a journalist’s arm with “no change to WA GST” in permanent marker ahead of the last federal election.
“I’ve signed people’s body parts, for goodness sake,” he said.
The prime minister has rejected calls from premiers across the country to adjust the GST settings following the Productivity Commission’s scathing report earlier this month.
GST has been collected by the federal government and distributed to the states and territories to fund essential services like education and healthcare since its inception in 2000.
Morrison, under the Turnbull government, introduced reforms in 2018 following Western Australia’s domestic recession to ensure no state would receive less GST than the financially strongest jurisdiction (either NSW or Victoria).
WA Premier Roger Cook and Prime Minister Anthony Albanese. Nine
The federal government would also top up the GST pool each year so no state was worse off.
The Productivity Commission’s interim report earlier this month found that the reforms have cost four times more than projected and propped up Western Australia.
Before 2018, all states received enough GST to meet 100 per cent of their financial needs.
That changed to 113 per cent for Western Australia in the 2024-25 financial year, compared to 98 per cent for the remaining jurisdictions.
To ensure the other states were not worse off, the federal government has spent almost $23 billion since 2018 to cover the difference.
Productivity Commissioner Angela Jackson said this has created two sets of rules: one for Western Australia and another for every other state and territory.
“If a state like South Australia improves its fiscal position, they get less GST because they are considered to need it less,” she said.
“If Western Australia improves its fiscal position, they either don’t lose any GST or potentially receive even more.”
The Productivity Commission recommended the federal government wind back the system to pre-2018 settings. It will deliver its final report on December 31.
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