WA GST controversy masks bigger issues

In 2018, Western Australia’s per capita share of goods and services tax (GST) was increased from $0.34 in the dollar to $0.47.

The increase earned a strong rebuke from then Treasurer Ben Wyatt, who labelled the increase “another slap in the face to the good people of Western Australia”, which for “the sixth year in a row… has not even received half of its population share of the GST”.

Shortly afterwards, then Labor Leader Bill Shorten promised to fix the situation by ensuring that Western Australia’s share of GST never fell below 70% if Labor won government.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.