The cost blowout from a GST deal negotiated by the Turnbull government to shore up votes in Western Australia could rise from $39 billion over a decade to at least $50 billion, economists say, putting further pressure on the Productivity Commission to recommend the deal’s abolition.
The cost blowout from a GST deal negotiated by the Turnbull government to shore up votes in Western Australia could rise from $39 billion over a decade to at least $50 billion, economists say, putting further pressure on the Productivity Commission to recommend the deal’s abolition. Cost blowout conclusion using different methodologies, and both are calling for the Productivity Commission to recommend the abolition of the top-up payment when it is next reviewed.
Economist Saul Eslake says of WA’s GST deal: “How that can be reconciled with any sensible concept of equity, let alone fiscal prudence, is surely beyond comprehension.” Mr Eslake said the top-up payments were a rapidly growing impost on the federal budget and the worst public policy decision taken this century. Mr Richardson said the policy had violated the GST in that the tax was now skewed towards helping the wealthiest state leaving federal taxpayers to compensate the others
GST Deal Cost Blowout Economists Productivity Commission Abolition Western Australia