The Cook Government of Western Australia is set to launch a robust advertising campaign to defend the state’s Goods and Services Tax (GST) deal. Starting next week, this $1 million initiative aims to counter criticisms from eastern states regarding the sustainability of WA’s GST arrangements. The campaign will feature advertisements across billboards in Canberra, national newspapers, and social media platforms.
In addition to targeting eastern audiences, the campaign will encourage residents of WA to participate in the discussion about the GST’s future. Premier Roger Cook emphasized that the current GST deal benefits all Australians, not just those in WA. “The bottom line is that WA’s GST is working for Australia,” Cook stated. He urged business leaders and the community to unite as “Team WA” to advocate for maintaining the status quo.
The Premier elaborated, “This campaign is about educating east coast residents that WA’s GST deal is critical for funding infrastructure necessary for our national economy.” He noted that the funds are essential for projects that support the broader population. Furthermore, the government seeks to gather input from Western Australians to inform its submission to the Productivity Commission regarding the GST arrangements.
Concerns persist among WA officials about potential changes that could arise from pressure exerted by eastern state Premiers. Although Prime Minister Anthony Albanese has previously expressed support for maintaining the 75¢ GST floor established in 2018, there are fears that future administrations may cave to demands for change. Rita Saffioti, the state treasurer, declared that “the gloves are off” in defending WA’s fair share of GST. She highlighted that despite reforms, WA’s share remains lower than any other state has experienced.
Critics of the current GST arrangement, such as economist Saul Eslake, continue to voice their dissent. Eslake has labeled the 2018 GST deal as the “worst public policy decision of the 21st century.” In the fiscal year 2024-2025, WA expects to receive $7.4 billion in GST revenue, which is vital not only for funding infrastructure supporting the mining sector but also for schools, hospitals, and ports.
Losing the current GST deal could cost WA nearly $6 billion each year. The Productivity Commission is scheduled to review the 2018 Commonwealth deal, which guaranteed WA no less than 75¢ for every dollar collected in GST. Before this arrangement, WA’s GST allocation had dropped to below 30 cents on the dollar, severely impacting the state’s budget and its ability to fund necessary infrastructure.
In response to arguments that WA does not require additional GST funds due to high iron ore prices, Premier Cook stated, “My vision is for Western Australia’s economy to remain the strongest in the nation, and that’s why it’s critical that WA keeps its fair share of the GST.” He plans to meet with Prime Minister Albanese and senior federal ministers to discuss the importance of the current GST deal.
The Cook Government is adamant that WA’s economic contributions are crucial for the national economy, particularly considering the significant revenue the Commonwealth derives from the mining sector. In the fiscal year 2023-2024, the Commonwealth collected over $18 billion in company taxes from the four largest iron ore producers in WA. Over the past five years, these companies have contributed more than $100 billion to the Commonwealth, significantly outweighing the cost of the 2018 reforms.
As the campaign rolls out, public opinion remains divided. Pollster Kosmos Samaras expressed skepticism about whether the advertising efforts will sway eastern audiences, citing a deep-seated parochialism. “Because people are parochial, they’re not going to listen,” he explained. Nevertheless, he acknowledged that the campaign would resonate with Western Australians, demonstrating that the Cook Government is committed to advocating for their interests.
In the coming days, Cook and his team will engage directly with federal leaders to make their case for the GST deal, emphasizing the need for ongoing support for WA’s economic engine.
