No changes to GST, Cormann says
The Abbott government has refused to make changes to the GST - full stop, end of story - for this term at least.
Finance Minister Mathias Cormann is sticking to the election promise, hoping to put the West Australian government's grumbles over the tax's distribution to bed.
The WA senator is also using the pledge to dismiss the Organisation for Economic Cooperation and Development's recommendation the GST be broadened or increased to help balance the budget without damaging the economy.
But he has limited his renewed vow to the coalition's current term, which should please Opposition Leader Bill Shorten, who says if the government wants to change the GST, it should take it to an election.
"We went to the last election with a very clear commitment that we would not make any changes to the GST in the first term of an Abbott government - full stop, end of story," Mr Cormann told reporters in Perth.
Instead, the government will review medium- to long-term tax reform to help build a stronger economy, he says.
WA Premier Colin Barnett, who has previously called on federal WA politicians to fight for the state's fair share, said his "good friend" Mr Cormann made some well-reasoned comments.
Mr Barnett said the OECD also had a point in saying Australia had a relatively low level of GST compared with most developed countries, but WA's issue was with distribution.
"We're not going to be entertaining a rise in the GST unless that is accompanied by reformed distribution," Mr Barnett said.
"Otherwise, Western Australians will be paying more GST to see it all go over to the east coast."
WA opposition treasury spokesman Ben Wyatt said Mr Barnett's meek response in the presence of a federal Liberal minister showed the premier was never going to make a strenuous argument for fairer distribution.
"Ultimately, Mr Barnett will fall back on the GST argument when he's under pressure for the mismanagement of finances," Mr Wyatt said.
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