After a decade-long campaign from the west for a fairer deal, the Morrison Government’s GST reform package has unanimously passed the Senate.
The overhaul will cost $10 billion over a decade, and there has been a guarantee that no state or territory would be worse off enshrined in law.
Western Australia will be $4.7 billion better off under the plan over a period of eight years.
So when will WA see the extra money?
So-called top-up payments will start to flow into state coffers from next year when a staged plan to implement the overhaul begins.
Here’s the breakdown of how much additional cash WA will get over the next few years:
- 2019-2020: $814 million
- 2020-2021: $585 million
- 2021-2022: $305 million
After that, a key element of the overhaul kicks in — a new GST floor.
Just how bad did WA’s GST share get?
WA’s share of GST fell to 30 cents in the dollar in 2015-16 as the Commonwealth Grants Commission continued to deem it “the state with the strongest fiscal capacity”, long after the mining boom ended.