Fights about the distribution of GST revenue aren’t just about the money – they also reflect the political death of major tax reform. It’s a policy fiasco.
Ferocious arguments between the states over their shares of the GST aren’t just typical squabbles over money. They are another signpost to the dead end of major tax reform in Australia.
The outrage from any other state government – and certainly most economists – about the inequity of Western Australia’s special deal on the GST won’t change that paralysis.
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Jennifer Hewett is the national affairs columnist. She writes a daily column on politics, business and the economy. Connect with Jennifer on Twitter. Email Jennifer at jennifer.hewett@afr.com
