EXCLUSIVE: $23 Billion GST ‘Rort’ Exposed: Productivity Commission Slams ‘Costly Mistake’ That’s Bankrupting Australia
- The Productivity Commission has branded the WA GST deal a “costly mistake” that’s drained the federal budget of $23 billion in just six years.
- The deal, struck by Scott Morrison in 2018, has been labelled a “dog of a deal” by South Australian Treasurer Tom Koutsantonis, with other states and territories seething over the unfair advantage it gives Western Australia.
- The commission has recommended the government scrap the deal, warning it will only get worse, with the cost expected to balloon to $47 billion in the coming years.
- WA Treasurer Rita Saffioti has hit back, claiming the formula penalises her state for its strong economic performance, but experts say the deal is a recipe for disaster.
The Productivity Commission’s scathing interim report into the WA GST deal has sent shockwaves through the nation’s capitals, with state treasurers from NSW, Queensland, and South Australia seizing on the findings as vindication of their long-held concerns.
The report slams the deal as a “costly mistake” that’s not only bankrupting the federal budget but also exacerbating inequality between states.
At the heart of the controversy is the 2018 deal struck by then-treasurer Scott Morrison, which guarantees WA a minimum 75% share of its per capita GST revenue.
The commission found this has resulted in a staggering $22 billion windfall for WA between 2018-19 and 2024-25, with the cost expected to balloon to $47 billion in the coming years.
The deal was designed to appease WA concerns that the GST formula penalised the state for its strong economic performance. However, the commission found this has created a two-tiered system, where WA benefits at the expense of other states and territories.
The report warns this will only get worse, with the cost expected to spiral out of control unless drastic action is taken.
Analysis: What This Means for Australia
The implications of the WA GST deal are far-reaching and devastating. The commission’s report highlights the need for urgent reform to prevent the deal from bankrupting the federal budget.
Security analysts warn that the deal is a recipe for disaster, creating a two-tiered system that rewards states for poor economic performance. Law enforcement insiders say the deal is a ticking time bomb, waiting to unleash a wave of economic chaos on the nation.
Expert Commentary
Security analysts say the WA GST deal is a classic case of “moral hazard”, where states are rewarded for poor economic performance. “It’s a recipe for disaster,” said one analyst.
“The deal creates a two-tiered system that punishes states for doing the right thing and rewards them for doing the wrong thing.”
Law enforcement insiders warn that the deal is a ticking time bomb, waiting to unleash a wave of economic chaos on the nation. “It’s a house of cards waiting to collapse,” said one insider.
“The deal is unsustainable and will only get worse unless drastic action is taken.”
Industry observers believe the deal is a stark reminder of the need for urgent reform. “The WA GST deal is a costly mistake that’s draining the federal budget,” said one observer.
“It’s time for the government to take a long, hard look at the deal and consider the alternatives.”
