Treasurer Rob Lucas will support legislated GST reform if SA is set to benefit from proposed changes

SOUTH Australian Treasurer Rob Lucas say he has held back support for legislated GST reforms until it is clear the state will benefit from the measures.

SOUTH Australian Treasurer Rob Lucas says he has held back support for legislated GST reforms until it’s clear the state will benefit.

Mr Lucas will sit down with Federal Treasurer Josh Frydenberg and his state counterparts tomorrow to review the proposed changes, that would see SA receive an additional $257 million of $7.2 billion in top ups and enshrine Western Australia’s GST share to above 75 cents in the dollar.

The announcement was spruiked yesterday by Prime Minister Scott Morrison, who first announced the reforms in June when he was treasurer.

Mr Morrison is on a three- day tour of WA, and said “all states and territories are better off” from the “top-ups”.

Prime Minister Scott Morrison shakes hands with Matt Allen during a visit to Northlink WA. Picture: AAP Image/ Will Russell

“We believe the formula needed to change and our legislation will make that change law and give everybody the certainty they need … to provide the essential services that all Australians rely on,” Mr Morrison said.

But Mr Lucas said he won’t support “any change to the current arrangements” unless it’s in the best interests of South Australia. Independent economist Saul Eslake said at “face value” SA would not be any worse off as a result of its GST share because of the additional top up.

However, Mr Eslake warned there was “some risk” in the future that the Federal Government could seek to clawback some or all of its contribution. He encouraged Mr Lucas to seek a “written guarantee” that would not happen.

Opposition leader Bill Shorten in August said Labor would support a unity ticket. Mr Morrison expects the proposal to be introduced when parliament resumes in a fortnight.