Coalition says there’s ‘no ambiguity’ on its vow to leave GST alone

Withholding GST from states and territories that fail to build enough homes to plug the nation’s housing crisis is not being considered by the Coalition.

Opposition Leader Peter Dutton. Picture: NewsWire/Tertius Pickard

Withholding GST from states and territories that fail to build enough homes to plug the nation’s housing crisis is not being considered by the Coalition, despite the Liberal Party housing spokesman Andrew Bragg declaring such policies were “under consideration”.

Several senior Liberal sources expressed frustration over Senator Bragg’s comments at the weekend that left the door open to withdrawing GST payments to states as a “creative way to hit the states hard where it hurts” and force more housing stock to be opened up.

One source said the newly appointed housing spokesman needed to learn not to “float ideas that are not policy”.

Opposition Treasury spokesman Angus Taylor said there was “no ambiguity” in the Coalition’s position and measures that impacted GST were not being considered. “That’s not what we’re looking at right now,” he said on 6PR on Monday. “I think there’s been some misinterpretation.”

Mr Taylor would not say whether Senator Bragg had been reprimanded for his comments; “however Andrew’s comments are interpreted, there’s no ambiguity in our in our position,” he said.

Senator Bragg said he had simply been responding to a question on whether GST could be withdrawn, to which he said: “We haven’t announced our supply policy yet, but all those things will be under consideration”.

“I never mentioned (the GST) myself,” he said.

“It’s a long bow to draw.”

Liberal senator Andrew Bragg. Picture: Martin Ollman

The confusion over the ­Coalition’s GST policy was further exacerbated by Labor, which launched an ad campaign over the weekend questioning Peter Dutton’s commitment to the current GST deal – which sees West Australia receive 70c of every dollar of GST raised in the state – in an attempt to win over WA voters who will be crucial to Labor’s fortunes at the next election.

“Liberal Peter Dutton wants to rip away WA’s fair share of GST,” Anthony Albanese said. “What we know as well from Malcolm Turnbull and from Julie Bishop, was that at the time these measures were put in place, Peter Dutton was opposed to it.”

The government’s ad campaign rolls through quotes from senior Liberals such as Ms Bishop, who allegedly said “Peter Dutton is against WA getting a better GST deal” and ex-Liberal minister Ken Wyatt, who said Mr Dutton’s WA GST position was why he “could not serve in Dutton’s ministry”.

Mr Taylor said he had “never witnessed” Mr Dutton expressing opposition to the GST, the current version of which was put in place by the Coalition government.

“It’s a ridiculous scare campaign from a Prime Minister who has failed to manage the economy. It’s student politics.

“He’s desperate because he’s not dealing with the real issues Australians are facing, this cost-of-living crisis, the crisis for businesses that are struggling to make ends meet, and so this is what he stoops to,” Mr Taylor said.

Mr Dutton said he was part of the cabinet that put in place the current GST arrangement and reiterated his promise to make “no change to the GST formula”.

Labor targeted Mr Dutton at the 2022 election, with ads telling constituents that a vote for their local Liberal member was a vote for Mr Dutton and Mr Morrison.

Senior Labor sources said the extent to which Mr Dutton will be personally targeted as part of their election campaign materials was still being discussed.