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Funding the federation

The budget reveals WA’s deal to ‘right the wrong’ of its GST share will cost the Commonwealth $17b over four years.

Tom Burton

The federal budget has revealed the true cost of the 2018 deal to subsidise Western Australia’s GST payments and win the other states’ approvals by guaranteeing none would be worse off.

The deal by then treasurer Scott Morrison was allegedly “to right the wrong” (Josh Frydenberg’s description) of WA’s GST share trending to nothing because of previously booming iron ore royalties.

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Tom Burton was government editor at The Australian Financial Review.

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    Original URL: https://www.afr.com/politics/federal/funding-the-federation-20220404-p5aaou