24th Nov 2011 – Representatives Private Members' Business - Goods and Services Tax - Amend distribution of revenue

The majority voted against an amendment to the following motion introduced by Nationals MP Tony Crook:(See the motion and the related amendment here. )

That this House:

(1) notes that:

(a) Goods and Services Tax (GST) revenues are distributed to the States and Territories in accordance with a formula driven by Horizontal Fiscal Equalisation (HFE) principles and are legislated for in the Federal Financial Relations Act 2009;

(b) for 2010-11, Western Australia received just 68 per cent of what it would have received if GST revenue was distributed across Australia on a per capita basis—the lowest relativity applied to any State since the formula was introduced; and

(c) every other State and Territory, by contrast, received not less than 91 per cent of what it would have received if GST revenue was distributed evenly across Australia; and

(2) calls on the Government to amend the Act to stipulate a minimum GST revenue-sharing relativity of 75 per cent, which would allow continuing respect for the principles of HFE, but with proper recognition for population, and without Western Australia being unfairly penalised for its disproportionate contribution to our national economic prosperity.(Read more about Crook's motion on ABC News here. )

The amendment, introduced by Liberal MP Dr Mal Washer, was the following:

That the House: deletes paragraph (2) of the motion and substitutes:

(2) calls on the Government to refer the matter of the minimum share of GST allocated to Western Australia to the GST Distribution Review for further consideration and analysis.

One member, Mr Crook, rebelled and crossed the floor to vote 'no' to Dr Washer's amendment with the Government.(Read more about what it means to cross the floor in our FAQ Section.)

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