A plan to quell ongoing anger in WA over its poor share of GST revenue is facing a billion-dollar cost blowout.
Taxpayers will foot the bill for a billion-dollar cost blowout in the GST deal struck by Prime Minister Scott Morrison last year to quell ongoing anger in Western Australia over its share of revenue.
A plan from Scott Morrison when he was treasurer to deal with WA's long-running GST issues will require more cash from federal taxpayers.WA's share of the GST fell to 30c for every dollar of the tax collected within the state in 2014, prompting a long-running and bipartisan campaign for GST "justice". Allocations remained low despite WA going into recession at the end of the mining construction boom.
In the mid-year budget update it was expected WA would need $812 million in extra federal assistance but the updated figures mean Treasurer Josh Frydenberg needs to find at least an extra $300 million this year. The shortfall over three years could be as much as $2 billion.The first payment would fall in the 2019-20 financial year when the government is promising it will forecast the first budget surplus in a decade.
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