Prominent business leaders from Western Australia gathered today to support the Cook Government’s efforts in advocating for a fair share of the Goods and Services Tax (GST) for the state. The roundtable discussion included representatives from major companies such as Fortescue, Hancock Iron Ore, and Wesfarmers, along with industry bodies like the Chamber of Commerce and Industry WA and the Association of Mining and Exploration Companies.
Importance of Fair GST Distribution
The meeting is part of a national campaign titled “WA’s GST is working for Australia,” aimed at emphasizing the significance of the current GST arrangements to both Western Australia and the broader national economy. The Cook Government has launched targeted advertising to illustrate how the state’s contributions benefit the entire country.
During the discussion, attendees highlighted the necessity of maintaining WA’s 75-cent GST floor, a reform achieved by the WA Labor Government in 2018. This measure has allowed the state to invest significantly in critical economic infrastructure, including ports, roads, and health services, which are essential for supporting its thriving resources sector.
Western Australia accounts for 45 percent of Australia’s exports, driven largely by its resources sector. The 2018 reforms to the GST system have boosted the state’s ability to fund vital infrastructure projects and public services. If these reforms were reversed, it could lead to a loss of approximately $6 billion annually, severely impacting the state’s capacity to invest in hospitals, schools, and other critical services.
Industry Support and Future Actions
The contributions of WA’s four largest iron ore producers alone have generated over $100 billion in company tax for the Commonwealth in the first five years following the reforms. In light of these figures, business leaders signed an open letter expressing their unified support for the current GST arrangements and urging the Productivity Commission to uphold the 75-cent GST floor.
The insights gathered from the roundtable will inform the Cook Government’s submission to the Productivity Commission as it prepares for a review of GST distribution. The state government is also encouraging public participation, inviting Western Australians to share their views on the GST deal, which can be submitted directly to the commission.
Premier Roger Cook emphasized the importance of this initiative by stating, “My government wants to diversify Western Australia’s economy so it remains the strongest in the nation, which is why keeping our fair share of the GST is so important.” He noted the critical role that the GST deal plays in funding essential services and infrastructure.
Deputy Premier and Treasurer Rita Saffioti echoed these sentiments, stating, “It is vital that WA fights to ensure that the legislated 2018 reforms to the GST system remain in place. Maintaining Western Australia’s fair share of the GST is in the national interest.” She underscored the contributions that WA makes to the overall economy and urged industry leaders to unite in this cause.
As the discussions continue, the Cook Government and industry leaders remain committed to advocating for a GST structure that ensures fairness and supports the economic vitality of Western Australia. For more information on how to participate in the discussion regarding the GST deal, visit www.wa.gov.au/gst.
