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The real travesty of the WA GST deal

When we should be debating either broadening or raising the GST, we are instead discussing whether taxpayers should continue subsidising Australia’s richest state.

Michael Read

To critics, it’s one of the worst public policy decisions of this century. But to advocates, it’s a simple tweak that addresses a gross inequity.

The West Australian GST deal will cost taxpayers another $5.2 billion next financial year, as the federal government tips in ever more money to paper over the permanent damage done by the Turnbull government to Commonwealth-state financial relations.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/the-real-travesty-of-the-wa-gst-deal-20240313-p5fc1z