The former premier tells the National Press Club the current GST system 'is no longer fit for purpose', and a new system based on state populations should be implemented.
Former WA premier Colin Barnett wants the GST to be distributed to states and territories on a population basis.Mr Barnett suggests 10 per cent of GST revenue be distributed to states based on need, saying that would likely benefit the smallest states the most.Speaking at the National Press Club , Mr Barnett said a population-based GST would be "fair and equal, predictable, certain" and would simplify the current allocation system.
WA currently receives 70 cents in the dollar, but that is due to rise to 75 cents next financial year.Under Mr Barnett's proposal, 90 per cent of the GST revenue collected would be distributed on a population basis, with the remaining 10 per cent to be retained by the Commonwealth and shared based on need.
Mr Barnett argued that it should never drop below 75 cents in the dollar, a victory he ultimately won in 2018 a year after leaving office, when then-prime minister Scott Morrison agreed to ensure no state would be worse off under the GST distribution. Mr Barnett said today the GST remained "huge, cumbersome, complex bureaucratic" and was failing.Switching to a population basis for distributing GST revenue was "just plain common sense and simple, straightforward government," he said.Western Australia's $150,000 Canberra 'hub' is open for business.
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