26th Jun 2018, 4:07 PM – Senate Motions - Goods and Services Tax - Distribution

The majority voted against a motion introduced by Senator Peter Georgiou (WA), which means it failed.

Motion text

That the Senate—

(a) notes that:

(i) Western Australia receives a much lower proportion of goods and services tax (GST) revenue per capita than any other state – in 2017-18, the GST share per dollar for Western Australia was just 34 cents; no other state or territory received less than 87 cents,

(ii) on a per capita basis this equates to just $882 for every person in Western Australia compared to:

(A) $11,941 for every person in the Northern Territory,

(B) $4,624 for every Tasmanian, $3,690 for every South Australian and $2,389 for every Victorian with each of these states receiving more than three times the GST distribution per person when compared with Western Australia,

(iii) in 2016-17, Western Australia contributed 35 per cent of the nation's exports – by far the country's leading state on a balance of payments basis,

(iv) Western Australia subsidises all other states and territories, and, according to analysis by the Productivity Commission, over $3 billion dollars a year is being drained from Western Australia,

(v) international economic studies have shown that revenue transfers between states discourages economic development in recipient states and makes them dependent on subsidies from more economically progressive states, and

(vi) the Productivity Commission has prepared a report at the request of the government into the current GST distribution system, presented to the government on 15 May 2018 but not yet released;

(b) recognises that it is in the interests of the nation that tax revenue be fairly distributed; and

(c) calls on the government to immediately table the Productivity Commission report into the GST distribution system.