WA’s GST ‘fairness fighter team’ sets stage for bureaucrat showdown

A group of Treasury bureaucrats dubbed by WA Premier Mark McGowan as the state’s GST “fairness fighters” is being assembled in direct response to a similar team being set up in New South Wales.

During a budget estimates hearing on Tuesday,McGowan said $1.6 million for Treasury resources would pay for three new staff to join an existing team of five bureaucrats,who would focus on devising arguments to protect WA’s GST share ahead of two upcoming federal reviews.

In March,the NSW government posted a $231,000-a-year job ad for a high-level bureaucrat who would lead a team to devise a response to a Commonwealth Grants Commission review of the GST methodology,set to begin next year.

McGowan told estimates the WA funding was a small but wise investment if other states banded together in an effort to tank a deal struck by the former Coalition government to introduce a floor of 75 cents in the dollar to the GST system.

“We noted that NSW has taken on board people under the last government,which,I assume,will continue … to argue their case,” he said.

“Treasury and myself are of the view it would be irresponsible for us to not do the same thing in light of the fact that there are these two reviews.

“[Other states] may seek to put submissions in,perhaps all the other states will join forces and put submissions in. I don’t know,but I think it’s a wise investment to make sure that our arguments are well-researched and well-presented.”

McGowan’s comments came the same day the Victorian government handed down its 2023-24 budget that estimated net debt would increase $171.4 billion by 2027.

The budget papers described the current GST system as unfair and warned against the Commonwealth removing the no-worse-off guarantee built into the 2018 GST deal,which is set to expire in 2026-27.

“Most states are likely to be worse off under the new system after 2026-27 unless the Commonwealth Government makes the no-worse-off guarantee permanent,” the budget papers said.

“Victoria will continue to advocate for a fairer system of GST distribution with the Commonwealth Government.”

On top of the CGC review,the Productivity Commission is scheduled to probe the 2018 deal including the floor and the no-worse-off guarantee,which is expected to cost the Commonwealth $30 billion.

Eastern states governments continue to apply pressure on the Commonwealth to alter the GST deal or ensure no-worse-off payments continued indefinitely,as the WA government delivered its sixth surplus earlier this month on the back of an improved GST share and high mining royalties.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories,analysis and insights.Sign up here.