WA Premier warns NSW to back off after ‘pathetic campaign’ to change GST deal

The WA Premier has warned the NSW government to ‘back off after the state government launched a ‘pathetic campaign’ to unwind the GST deal.

WA Premier Mark McGowan accused NSW of trying to cover up its own financial mismanagement. Picture: Paul Kane/Getty Images

The WA Premier says the NSW government has launched a “pathetic campaign” to unwind the GST deal in an attempt to cover up its own financial mismanagement.

The NSW budget papers say changes to the GST system are “proving to be unfair and unsustainable”, and that WA enjoys “significant fiscal advantage” from its mineral royalties due to high global iron ore prices.

“This means the WA government is being insulated from the economic and fiscal impacts of the COVID-19 pandemic,” the budget reads.

WA Labor Premier Mark McGowan said the NSW Liberal government had started a campaign to unwind the GST arrangement that WA had secured.

NSW Treasurer Dominic Perrottet unveiled the NSW state budget this week. Picture: NCA NewsWire / Gaye Gerard - POOL

“They’ve done it to cover up their own financial mismanagement,” he told reporters on Wednesday.

Mr McGowan noted NSW had a deficit of $16 billion, compared to WA’s surplus of $1.2 billion.

“They have been financially irresponsible, they are using this GST argument to cover up their own failures. We will not stand for it, we will fight this,” he said.

“The GST deal ensures WA receives a base of 70c in the dollar. NSW is currently getting 92c in the dollar — and they say it’s unfair? I mean seriously?”

Mr McGowan said the GST formula was sensible and relatively fair, but if it were to be truly fair WA would get the same as NSW — not 20c in the dollar less.

“All I’d say to the NSW government and Premier is back off — it’s pathetic,” he said.

“It’s unwinding a deal that guarantees fairness for one-third of the continent and the state that provides the biggest boost, ironically, to NSW.”