Rita Saffioti pushes back on higher GST rate because it will mean ‘more WA subsidies for rest of Australia’

WA Treasurer Rita Saffioti says she’ll block any moves to raise Australia’s GST rate, saying it would further dud Western Australia and increase how the State subsidises the rest of the nation. Ahead of Federal Treasurer Jim Chalmers’ much-hyped productivity summit later this month, debate has increased around whether Australia should lift the GST from 10 per cent to 15 per cent, as a way pumping billions into the under-pressure Federal Budget. WA’s Kate Chaney, the independent MP for Curtin, has backed the idea, suggesting Australians receive $3300 a year in exchange for accepting a higher and broader GST plan. But Ms Saffioti is against any change. “We don’t support an increase in the GST to 15 percent,” she said. “One of the reasons is that even under the current GST deal, it will mean Western Australia subsidising the rest of the country even more than we already do.” With tax reform expected to dominate the roundtable discussions, Dr Chalmers has given WA a fresh assurance its multi-billion dollar GST deal is safe, having last week come under pressure from Liberal leader Sussan Ley to do so. Dr Chalmers this week moved to dispel any concerns from WA the Albanese Government would cave in to growing pressure to change the current arrangements. At least one of the speakers at the summit, Grattan Institute chief executive Aruna Sathanapally, is a known advocate of abolishing the 2018 GST deal that secured WA billions in extra GST funds through a 75¢ in the dollar floor. Through a spokesperson, Dr Chalmers this week told The West: “We are strong supporters of making sure WA continues to get a fair share of GST revenue. Our position on that has not changed.” But those assurances haven’t stopped WA preparing for a massive GST battle that will unfold over the next year, as the Productivity Commission conducts its own review of the WA GST deal, and the way GST billions are distributed. “We know the current GST deal for WA is secure under Anthony Albanese and Federal Labor, but WA can’t sit on the sidelines when we know other States, as well as economic commentators on the east coast, will be using the upcoming Productivity Commission review to try and tear down the deal,” Ms Saffioti said. “We’re still awaiting the terms of reference for the review, but we will be developing a very strong submission and campaign that explains why the current GST deal is not only fair for WA, but the entire nation.” WA’s GST deal was legislated in the Federal Parliament in 2018, by the-then Scott Morrison Coalition Government. In WA last week, Federal Opposition leader Sussan Ley backed the deal to remain. “We support what we initiated under the Morrison Government for the great State of Western Australia,” she said.