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States revolt on WA’s $2b GST windfall

John KehoeEconomics editor

Mar 19, 2021 – 5.15pm

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Eastern states are trying to unwind a special deal that Scott Morrison cut with Western Australia three years ago that is now delivering the mining state a $2 billion annual windfall and has blown out federal budget costs.

State treasurers collectively voiced their frustration to Treasurer Josh Frydenberg at a meeting on Friday and they demanded Canberra review the $63 billion GST distribution to avoid non-WA states losing money in the long-term.

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.