Albanese's eastern sweep reignites push to scrap WA's GST deal
Independent economist Saul Eslake says Labor no longer needs WA’s seats to hold power, opening the door to rethink the state’s lucrative GST carve-up.
A leading proponent of scrapping the controversial Western Australian GST deal expects the Albanese government might shift its position on the lucrative arrangement in its second term.
The current deal with WA was struck by then-treasurer Scott Morrison and former WA premier Mark McGowan in 2018. It delivers 75 cents of every dollar raised in GST in the state back to WA, ultimately giving the state around $50 billion more by the end of 2030 than it would have received under the Commonwealth Grants Commission formula, which penalises WA for its ability to raise billions in mining royalties amid soaring iron ore prices.
The deal is set to expire on 30 June 2030, with Albanese needing to decide its future by the 2027-28 budget to include details in the 2030-31 estimates.
Independent economist Saul Eslake, one of Australia’s most vocal critics of the WA deal, now believes there is a window of opportunity to scrap or decline to renew the arrangement.
