Western Australian Treasurer Rita Saffioti has declared the state government will not compromise on its share of the Goods and Services Tax (GST) revenue, as a Productivity Commission review looms. Saffioti and Premier Roger Cook met with Prime Minister Anthony Albanese in Canberra this week as part of a $1 million advertising campaign aimed at protecting the current arrangement.
The existing deal, introduced by the Morrison government in 2018, guarantees WA at least 75 cents for every dollar of GST revenue. Saffioti argued the deal should be the minimum, noting that WA still contributes $2.5 billion annually to other states. “We don’t want to be on the back foot,” she told Stateline, emphasizing the need to counter criticism from eastern states.
The state government launched its offensive ahead of the Productivity Commission’s review, which is not due to report until the end of 2026. Saffioti rejected claims the campaign was premature, stating submissions are due by February. She also enlisted support from prominent business figures, including mining magnate Andrew Forrest, property developer Nigel Satterley, and businessman Michael Chaney.
Critics, including Tasmanian economist Saul Eslake, have labeled the WA deal “the worst public policy decision of the 21st century,” arguing it produces a healthy state surplus at the expense of other regions. Saffioti countered that Eslake’s analysis was flawed, asserting that WA spends the highest on economic infrastructure when including government utilities.
When asked about alternative models like per capita distribution, Saffioti said WA would benefit even more, gaining an additional $2.5 billion. “If that’s where people want to go, we would back that in,” she said. The treasurer stressed that a strong WA economy benefits the entire nation and the federal budget.
