Opposition Leader Peter Dutton attacked in Labor attack ad over WA GST carve-up

Amid Prime Minister Anthony Albanese’s WA visit, Labor claims Opposition Leader Peter Dutton would scuttle a deal costing the state billions.

The Albanese government has gone on the attack against Opposition Leader Peter Dutton in a new hit ad saying he would threaten Western Australia’s GST carve-up if he wins the election.

Under a 2018 deal minted under the former Coalition government, WA was guaranteed a 70 cents per dollar minimum in the annual GST redistribution.

Referencing quotes made by former senior Liberal Party voices, including former prime ministers Scott Morrison and Malcolm Turnbull, Julie Bishop and Ken Wyatt, it claims Mr Dutton opposed the deal while serving as a government minister.

It’s calculated the removal of the 70c-per-dollar floor could threaten the $36.5bn in additional revenue WA is set to receive from the current financial year to 2029-30.

The Albanese government is targeting Peter Dutton's previous stance on reducing Western Australia's share of GST. Picture: Australian Labor Party

After WA’s GST share collapsed thanks to soaring commodity royalties, the Turnbull government in 2018 guaranteed a floor of 70c of every dollar of GST raised in the state from mid-2019 in an attempt to sandbag seats. The floor rose to 75c from July 1 this year.

Currently on a multi-day trip to Western Australia – a key battleground state for the upcoming federal election — Anthony Albanese committed his ongoing support to keeping the deal.

“My Labor government is completely committed to the GST deal for WA,” he said.

“It’s time for Peter Dutton and the Liberal Party to come clean. Do they support a fair share for WA?”

In the event of a change to government, WA Premier Roger Cook said the state would fend off any attacks to the commitment.

“We fought hard to secure our fair share of the GST and I’ll keep fighting every day to keep it,” he said.

“Peter Dutton and the Liberals are the biggest risk to WA’s GST. Peter Dutton opposed the GST deal in cabinet. He’s never supported a fair share for WA – so who knows what he would do as Prime Minister.

“WA is the economic powerhouse of the nation, and a fair GST system is crucial to our economic strength.”

The online ad began running from Sunday, and uses quotes from former senior Liberal ministers like Julie Bishop. Picture: Australian Labor Party

While Mr Dutton’s office did not directly comment when approached, they pointed to the Opposition Leader’s promise to uphold the floor deal.

Mr Dutton made the comments in 2022 during a visit to the state shortly after becoming Opposition Leader.

“We support the current arrangement for WA, I’m not going to change it, I’m not proposing a policy to change it,” he said.

“I believe that there’s an equity argument for WA.”

On Friday, Assistant Minister to the Prime Minister Patrick Gorman told the Bush Summit the Albanese government remained committed to current GST arrangements.

“When it comes to my government’s policy, the GST deal stays because we recognise it’s fair, it’s the right thing to do by WA, and that 75 per cent floor might benefit other states from time to time as well,” he said.

NSW Treasurer Daniel Mookhey has been outspoken about the GST deal for WA, saying it’s be done at the expense of his state. Picture: NewsWire / John Appleyard

WA Treasurer Rita Saffioti has warned other states against trying to have the state’s GST floor deal overturned. Picture: NewsWire /Philip Gostelow

Other states are against WA’s increased share of GST funding, which is calculated by the independent Commonwealth Grants Commission (CGS) and divided on the basis of need and the state’s own economic capacity.

NSW Treasurer Daniel Mookhey has said he would petition his federal counterpart for a GST carve-up based on population, plus reform for greater transparency around GST splits and four-year forecasting to align with budget forward estimates.

Victorian Treasurer Tim Pallas this year described the ­current GST arrangements as “a significant fiscal threat to ­Victoria” and said the floor introduced in 2018 meant WA’s contribution to the rest of the country was “limited”.

The Productivity Commission will produce a review of the GST carve-up in 2026.

Originally published as Opposition Leader Peter Dutton attacked in Labor attack ad over WA GST carve-up