Cook said he didn’t care if the rest of Australia was sick of his government’s constant rhetoric,which argued the 2018 GST deal that has seen billions of dollars flow into WA’s coffers alongside staggering iron ore royalties needed to remain in place because of its status as “the engine room of the nation’s economy”.
WA Premier Roger Cook.Hamish Hastie
“My priority is Western Australia,we’re going to defend our fair share of the GST,we’re going to stand up for WA,” he said.
“We are the engine room of the nation’s economy,it’s important that we have the resources to make sure that maintains the case.”
The top-up payments were introduced by the former Coalition government in 2018 alongside changes to the GST formula that had seen WA’s share plummet to below 30 cents for every dollar it contributed to the pool. WA doesn’t get any top-up payments,but receives at least 70 cents for every dollar contributed.
Cook’s comments will incense other state treasurers,who have been urging Chalmers to make permanent the GST top-up payments – known as the no-worse-off guarantee – over fears billions would be wiped from their budgets when the deal expired in 2026-27.
While the top-ups have curbed political pressure,they have put a huge strain on the federal budget,with Chalmers estimating the cost at $33.9 billion.
WA Treasurer Rita Saffioti will meet with her state and territory counterparts in Brisbane tomorrow,where they will put their case to Chalmers to keep the top-up arrangement.
Cook said Saffioti would put forward WA’s case “very forcefully”.
Asked whether keeping the payments would be the neatest solution for Chalmers,Cook said it would answer the concerns of other states.
“The no-worse-off guarantee means that they can continue to stabilise their budgets,which I would observe under a lot of pressure at the moment,” he said.
“We’ve done the right thing. We’ve protected our state’s finances.
“The GST arrangements are about Western Australia getting its fair share of the GST.”
Chalmers has committed to keeping the current GST formula that has benefited WA,which includes a 70 cent in the dollar floor,but told ABC radio there was a “live conversation” around the top-up payments.
“I will always work with them to do the best we can for the people that we represent but that means recognising there’s not just pressure on state budgets,there’s pressure on the Commonwealth budget as well,” he said.
Chalmers said states were receiving billions of dollars in other federal payments,including in housing and skills areas.
The treasurers will also discuss electric vehicle tax settings and the NDIS review.
Start the day with a summary of the day’s most important and interesting stories,analysis and insights..