WA welcomes interim GST review report

West Australian Treasurer Christian Porter has welcomed an interim report’s suggestions on changing the way GST revenues are distributed, saying his state looks likely to be better off.

“This report puts formally the first nail in the coffin of the existing GST distribution system,” Mr Porter told reporters on Monday.

Mr Porter and Premier Colin Barnett have campaigned for a change in the way GST revenues are distributed, saying the current system is unfair to WA and will lead to a diminishing GST take for the state.

Mr Porter said the report suggests that the cost to a state of mining-related infrastructure should be recognised in the GST carve-up and that would be beneficial to WA.

One solution would be to exclude some mining revenue from the calculations.

Mr Porter said wider-ranging reforms of the system suggested in the 180-page interim report would benefit WA further.

But he said the report’s authors did not seem keen on the WA government’s suggestion of a floor of 75 cents in the dollar for WA’s GST share.

But the report did suggest limiting relativity changes which would be similar to a floor system, the treasurer said.

He said it said that no state should have a real loss of GST revenue from one year to the next.

“If that was in place now we wouldn’t have lost $600 million,” Mr Porter said, referring to his state’s reduced GST share for 2012-13.

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