West Australian Treasurer Rita Saffioti has launched yet another broadside at opponents of the GST deal that has blown out the federal government’s books by a further $12 billion, urging them to read about the state’s other contributions to the budget.
The morning after the budget was handed down, Saffioti said opponents to the GST deal only read one part of the budget and ignored the billions of dollars in extra company tax revenue poured into federal coffers from WA’s booming resources sector.
WA Treasurer Rita Saffioti.Credit: Trevor Collens
“We’ve had the strongest consumption last year than all the other states, our company tax revenue from WA I think has doubled over the past five years, royalty income is going in there,” she said.
“They should go and read the other parts of the budget where WA revenues are propping up much of the revenue that’s coming into the federal government.
“So don’t just look at what WA is getting, look at what WA is giving. And we’re giving, far more than we’re getting.”
Tuesday’s federal budget revealed the guarantee holding the Coalition government’s 2018 GST formula change together had blown out from $39.2 billion to $52.9 billion.
That figure is the cost of the guarantee paid to other states to ensure they are not worse off with a 70 to 75 cents in the dollar floor introduced in the GST share.
The deal has seen WA’s GST revenue rise from 30 cents in the dollar in 2018 to 75 cents in the dollar at the same time its iron ore royalty revenues skyrocketed.
Last week’s WA budget predicted total GST grants to the state would grow from $7.2 billion in the upcoming financial year to $9 billion by 2027-28, while the federal budget said New South Wales’ share would be $1.9 billion less than predicted next financial year.
WA’s swollen coffers have drawn the ire of economists Chris Richardson and Saul Eslake, as well as other state treasurers who either want the floor scrapped or an indefinite continuation of the no worse-off guarantee.
Saffioti’s comments were responding to a post on X, formerly Twitter, by Richardson on Wednesday, where he shared the most recent figures with the comment “read it and weep”.
Richardson pointed out the cost was higher than the 10-year $22.7 billion Future Made in Australia strategy.
Given the WA public’s strong support of the current GST arrangement, the debate has become one of the most politically charged in the country.
Both of the country’s major parties recognise that tinkering with the deal could mean electoral devastation in the west.
Saffioti said she was confident the Albanese government would not touch the deal, but accused Opposition Leader Peter Dutton of being absent in his support.
“I think we still haven’t seen the federal opposition leader come out and back it, which is a big concern because we wanted bipartisan support,” she said.
But WA’s most senior Liberal Senator Michaelia Cash rubbished Saffioti’s comments as a “desperate and cynical ploy”.
“She is desperately trying to boost the flagging fortunes of Mr Albanese in Western Australia where voters have become disillusioned with Labor’s failures on the economy, the cost-of-living crisis and keeping them safe,” she said.
“Peter Dutton was part of the Coalition cabinet that delivered the GST that gave WA its fair share, and she should be thanking him for that.
“He has reiterated his strong support for that deal on many occasions including during his most recent visit to our great state.”
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