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‘Beyond comprehension’: WA’s GST deal to blow out to $50b

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The cost blowout from a GST deal negotiated by the Turnbull government to shore up votes in Western Australia could rise from $39 billion over a decade to at least $50 billion, economists say, putting further pressure on the Productivity Commission to recommend the deal’s abolition.

Independent economist Saul Eslake and budget economist Chris Richardson arrived at the same cost blowout conclusion using different methodologies, and both are calling for the Productivity Commission to recommend the abolition of the top-up payment when it is next reviewed.

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Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com
Tom McIlroy is the Financial Review’s Canberra bureau chief based in the press gallery at Parliament House. He was previously the AFR’s political correspondent. Connect with Tom on Twitter. Email Tom at thomas.mcilroy@afr.com

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    Original URL: https://www.afr.com/politics/federal/beyond-comprehension-wa-s-gst-deal-to-blow-out-to-50b-20240212-p5f49h