GST carve-up: States call for funding guarantee on Scott Morrison’s $9 billion reforms
STATE treasurers have sent Scott Morrison a united message they won’t back his $9 billion GST reforms unless the Commonwealth guarantees in law that “no state will be worse off”.
National
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FIVE out of six states are warning Scott Morrison they won’t back his $9 billion GST reforms unless the Commonwealth guarantees in law that “no state will be worse off”.
In a united stand following their meeting with federal Treasurer Josh Frydenberg this morning, all state treasurers barring Western Australia’s representative have fronted the media to warn the Commonwealth it will need to include a written guarantee in legislation before they back the reform.
Treasurers also unanimously voted to axe the so-called tampon tax at today’s meeting.
Prime Minister Morrison hit back at the warning today, saying: “Our Government isn’t in the habit of writing blank cheques to anybody.”
“There will never be a better deal than this for everybody,” Mr Morrison added, arguing that every state and territory would be better off under the reforms.
“I’m used to states and territories trying to talk out more money from the Commonwealth. It’s my job to protect Australian taxpayers,” he said.
“It’s time to stop arguing about it. It’s time to get it done.”
Earlier, the Prime Minister said the states’ support wasn’t necessary to pass the legislation which would lock in the change to the GST distribution.
Speaking to a Perth radio station this morning, he said the state treasurers’ meeting would have “no bearing” on the reform, which will introduce a 75 cent floor to GST payments.
Mr Frydenberg repeated the government’s assurance after the meeting that no state would be worse off under the reforms, given the government will deliver an extra $9 billion in “top up” payments to the states over the next decade and another $1 billion every year after that.
He said the states had “never had a better partner” on GST than the current government.
“Scott Morrison, as Treasurer, now Prime Minister, has worked very hard to get a deal that is fair and that is sustainable,” he said.
The reform was designed to protect Western Australia from its GST share again crashing to the mining boom lows of less than 30 cents in the dollar.
Eastern states have raised concerns they will be worse off under the deal.
“This has nothing to do with making the distribution of the GST fairer - it’s about fixing the political problem Scott Morrison has in Western Australia,” Victorian Treasurer Tim Pallas told AAP earlier.
“The prime minister claimed that no states will be worse off - but they’ve provided no mechanism to ensure this is the case.”
Mr Frydenberg said the changes are based on data from the Productivity Commission and will leave all states and territories better off.
“We’re putting in an additional $9 billion to support the states and territories,” he told Sky News on Wednesday.
“There will be an additional billion dollars, in perpetuity, going to the states and territories from the GST, and we are putting in a floor at 75 cents so that no state falls below that proportion of GST shared.”
Federal Labor is broadly supportive of the GST changes but is concerned there are no protections contained in the government’s draft legislation.
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