Shorten accused of ‘crab walking’ away from Morrison’s GST reforms

Scott Morrison has accused Bill Shorten of ‘crab-walking’ away from a promise to back reform of the GST system

Prime Minister Scott Morrison plays football with students on a visit to Clontarf Aboriginal College in Perth yesterday. Picture: AAP

Scott Morrison has accused Bill Shorten of “crab-walking” away from a promise to back reform of the GST system and has threatened to campaign on the issue in Western Australia in the lead-up to the federal election.

The Prime Minister this week revealed he would introduce legislation when parliament resumes to lock in $7.2 billion of extra GST payments to the states over eight years as part of an overhaul of the annual carve-up of the tax.

But Labor’s Treasury spokesman Chris Bowen said he was “deeply concerned’ that the proposed new laws failed to guarantee that no state would be worse off.

Tasmania’s Liberal government has also insisted on an “enforceable guarantee” it would not be worse off under the new system.

The issue will be debated at a meeting between Josh Frydenberg and state treasurers in Melbourne today.

WA Premier Mark McGowan admitted yesterday he was “surprised” federal Labor was not supporting the proposed laws and said he would contact the Opposition Leader to quiz him on the issue.

The federal Labor leader declared last month he wanted a “unity ticket” with the government on GST reform to ensure WA received its fair share of the tax, but he has yet to commit to the complete package of changes unveiled by Mr Morrison in July.

“I think there is a unity ticket — that’s what Bill Shorten told me,” Mr McGowan told Perth radio ­station 6PR yesterday. “I think the legislation does ensure that no state will be worse off and in fact every state will be better off.”

Mr Morrison said if Labor blocked the GST legislation, Mr Shorten would have to explain himself to the people of WA.

“I will take it to the election,” he said in Perth. “The crab-walking seems to be starting for (Mr Shorten) when it comes to the fairer deal on the GST that WA deserves. The only person who can derail a better deal for WA is Bill Shorten.”

Mr Shorten said he would not back the new laws unless all states were better off. “I don’t want to see Tasmania, Queensland, any of the other states … disadvantaged because the government is trying to chase a few votes in Western Australia,” he said.

WA will be the biggest beneficiary of the planned changes, as the Coalition seeks to placate voters over the state’s record low share of the GST in recent years

The legislation would create a new benchmark to ensure that the fiscal capacity of all states is at least the equal of NSW or Victoria.