Premier Mark McGowan appoints himself as West Australian treasurer

The Premier said growing calls from the east for an end to WA’s GST deal had influenced his decision

Mark McGowan roles as Premier and treasurer give him significant influence over a government that has unprecedented control of WA’s parliament. Picture: Colin Murty

West Australian Premier Mark McGowan says growing concern about a grab of WA’s GST share by other states was a key factor in his decision to appoint himself as his government’s new Treasurer.

Mr McGowan followed his ­resounding election victory at the weekend by announcing on Thursday that he would fill the gap left by former treasurer Ben Wyatt’s retirement. It makes him the first WA premier in 20 years to also serve as treasurer.

Health Minister and Deputy Premier Roger Cook and Transport Minister Rita Saffioti had been tipped as Mr Wyatt’s most likely successors, but both will now remain in their existing roles as Mr Cook continues to manage the state’s health response to the pandemic and Ms Saffioti co­ordinates the rollout of the government’s signature Metronet transport project.

Mr McGowan’s joint roles will give him extraordinary influence over a government that already has unprecedented control of WA’s parliament following the weekend’s landslide. His Labor Party is on track to hold 53 of the state’s 59 lower house seats, as well as a majority of seats in the upper house.

He said on Thursday that his decision had been influenced by recent advice from the state’s under-treasurer, Michael Barnes, that other states were trying to unravel WA’s GST deal with the federal government.

The Morrison and McGowan governments had previously agreed to a floor in the GST distribution that would let WA eventually keep at least 75c of every $1 in GST revenue it raises. WA’s share of the GST had previously fallen as low as 30c in the dollar.

“There is a groundswell of ­effort amongst the states in the east to unravel the GST deal. That groundswell is growing every ­single day,” Mr McGowan said.

“Having a premier who can take these issues up at national cabinet and make sure at the highest levels that we fight off any changes to the GST deal is very important. I get reports all the time now of treasurers in other states who are trying to unravel the GST deal. Obviously we need to fight that at the highest levels.”

Mr McGowan had repeatedly refused to name Mr Wyatt’s successor during the election campaign. Mr Cook and Ms Saffioti both appeared to have strong claims to the job, but Mr McGowan said there were factors in their existing portfolios that meant changes were undesirable.

“We are in a pandemic, and moving the health minister was way too big a risk,” he said.

“We are also rolling out the biggest infrastructure program in history and building the biggest transport program in history with a minister with enormous success of getting money out of the ­commonwealth.”

Mr McGowan’s move comes at a time when WA’s coffers are reaping record revenue from a booming iron ore price. The state is set to collect more than $10bn in iron ore royalties this year.

On the eve of the election, ­ratings agency S&P said WA — the only Australian state not running a deficit — had recorded the best budget performance in the world during the pandemic.

There are five first-time ministers in Mr McGowan’s new cabinet: Amber-Jade Sanderson (environment, climate action and commerce); Tony Buti (finance, lands, sports and recreation and multiracial interests); John Carey (local government and housing); Reece Whitby (emergency services, racing and gaming, small business and volunteering); and Don Punch (disability services, fisheries, innovation and ICT, seniors and ageing).

Stephen Dawson, who was environment minister under the last government, will take on the ­Aboriginal affairs portfolio.