Cook Government’s plans for east coast advertising blitz to protect WA’s GST share

The Cook Government is preparing to go to war to protect the State’s GST take — making plans for an advertising blitz on the east coast to educate the rest of the country why a thriving WA is good for the whole nation. The Sunday Times understands the Government — in addition to sending a delegation to Canberra before the end of this year to eyeball Jim Chalmers and Anthony Albanese to demand no changes to WA’s GST take — is now gearing up for an east coast charm offensive later this year. Billboards, newspapers, radio: the lot — the Cook Government wants to dispel the eastern States notion WA’s GST deal is unwarranted and a bad deal for Australia. No ad spots have yet been booked, with an advertising agency yet to be appointed and costs not yet clear. “Western Australians work hard to create the wealth enjoyed by every Australian,” Acting Premier Rita Saffioti said. “Since 2017, our government has invested in infrastructure and delivered reforms to support WA’s growth and helped to make our State the strongest economy in the nation. “We want to continue supporting WA’s economy and its fast-growing population – including ensuring our State is the healthiest state in the nation and that every Western Australian has a home – which means we need to ensure WA keeps its fair share of the GST.” The Productivity Commission is undertaking a review of the new 2018 GST arrangements, which now sees WA get 75¢ in the dollar. Under the legislation, by the end of 2026 the Productivity Commission will inquire into whether the changes to the fiscal equalisation arrangements “are operating efficiently, effectively, and as intended. The inquiry will also examine the fiscal implications of the new arrangements for States.” Economists claim the deal, which involves billions in top up payments to other States to ensure their GST take under the old system is not affected, is not sustainable and costs the Commonwealth billions. Just last week, Chamber of Commerce and Industry WA research showed more than three in five West Australians were concerned about a potential cut to WA’s annual GST share. “Without that deal in 2018, WA would be getting just 18¢ for every dollar we pay in GST, or around $6 billion less than with the 75¢ floor in this financial year alone,” CCIWA acting co-chief executive Aaron Morey warned. “That would hamstring WA from developing that infrastructure we need to continue to power the national economy.” Ms Saffioti has previously said WA was providing the Commonwealth with more money than it received. “The latest figures in the State Budget show that in 2023-2024 we provided $39b more to the Commonwealth that we received,” she said in June. “It’s the equivalent of $13,324 for very person in WA. “No other State comes close to that.” Ms Saffioti this week said WA should be rewarded for developing its resources, and its entrepreneurial spirit, rather than punished. “It’s only right that Western Australians are rewarded for their hard work. “Our argument is simple. The GST system must incentivise states to support – not penalise – economic growth.” WA Liberal Senator Dean Smith on Saturday agreed WA’s GST deal must be preserved. “The risk for WA is that we are punished for the GST deal by an erosion of Federal funding in health, education and infrastructure,” he said. “Future funding cuts to WA are very already happening. “In Federal Labor’s last budget WA funding from the ‘Infrastructure Investment Fund’ was slashed by almost two thirds from $1.14 billion to $370 million in 2028.”