Victoria, Tasmania and ‘other states’ ask to join SA’s GST review

The SA treasurer is finding plenty of support in his mission to force a review of GST carve-up, but he has not been so lucky in his search for an expert to take the helm.

Victoria and Tasmania are among a growing number of states and territories joining South Australia’s call to review the country’s GST carve-up.

But Treasurer Rob Lucas is yet to find a qualified person to lead the independent inquiry that he flagged more than two months ago.

It has forced the state government to consider commissioning a large advisory company instead.

Mr Lucas revealed Victorian Treasurer Tim Pallas and Tasmanian Premier Peter Gutwein had contacted him to work together in an SA-led review of the system.

He said a “number of other jurisdictions” also showed interest in being involved

“If a number of jurisdictions want to be a party, allowing us to manage the process, which I think will be the case, then I am relaxed about that,” he said.

Discussions with other treasurers on how the inquiry should be run has led to further delays.

Treasurer Rob Lucas has struggled to find an independent person to lead his GST review. Other states wanting to get involved has further delayed the process.

Tasmanian Premier Peter Gutwein, who is also the state’s treasurer, wanted to get involved in SA’s GST review.

In his first public speech as NSW Premier, Dominic Perrottet vowed to fight for a higher GST deal for his state, though Prime Minister Scott Morrison ruled out any changes.

Senior Labor senator for SA, Penny Wong, told Perth radio she supported the current deal, in contrast to her state colleagues, who have called for a return to the old GST deal as created in 2000.

The federal government in July 2018 implemented a new GST “floor”, meaning all states could not receive less than 70c for every dollar of the tax it sends to federal coffers.

State treasurers around the country have argued WA should earn less GST because of its ability to rake in billions in royalties from rocketing iron ore prices.

Until 2026-27, all states have a “no-worse-off guarantee”, involving a method of top-up payments. After then, it would cost SA $258m per year, according to Victorian treasury modelling.

Senior SA Labor senator Penny Wong supports the current 70c GST floor, but promised she would fight for SA getting its fair share of the tax.

Speaking on 6PR Mornings, Senator Wong said: “There was obviously a long period where WA didn’t get their fair share”.

“You’ve got commodity prices which go up and down, so having the (70c) floor is a sensible position we will continue to support.”

Senator Wong told The Advertiser on Wednesday Federal Labor would ensure SA gets its fair share by maintaining the no-worse-off guarantee. SA Labor treasury spokesman Stephen Mullighan maintained his position of restoring the original GST deal.

“Unlike (Premier) Steven Marshall and Rob Lucas, the Labor opposition in SA will continue to fight for SA’s share of the GST to be restored, regardless of whether Labor or Liberal forms the next federal government,” he said.

Mr Lucas said he has consistently raised the issue with federal Liberal MPs.

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