Western Australia's Treasurer has launched a blistering counterattack against one of the nation's most vocal GST critics, accusing him of showing disrespect toward the state after he raised concerns about potential detention over his commentary.
Treasurer Rita Saffioti didn't hold back when responding to economist Saul Eslake's recent remarks, where he reportedly expressed apprehension about visiting WA due to his longstanding criticism of the state's GST allocation.
Economist's Visit Fears Spark Fiery Response
The controversy erupted when Eslake, a persistent critic of WA's GST distribution deal, suggested he might think twice about traveling to Western Australia. The prominent economist has been a regular commentator on what he perceives as an unfair advantage for WA in the national tax distribution system.
"I think that's disrespectful to Western Australia," Saffioti declared when questioned about Eslake's comments. Her sharp retort highlights the ongoing tension between WA and eastern states commentators over the contentious GST arrangement.
Long-simmering GST Tensions Boil Over
The current GST distribution agreement, which guarantees WA a minimum of 70 cents for every dollar of GST revenue collected in the state, has been a source of ongoing debate. While Western Australians argue it rectifies years of underfunding, critics from other states claim it creates an uneven playing field.
Saffioti defended the arrangement as crucial for WA's economic stability, emphasizing that the state contributes significantly to national prosperity through its mining and resources sector.
Broader Implications for Economic Debate
This public spat underscores the deep divisions that remain in Australia's federation over resource distribution. The Treasurer's strong reaction suggests WA's government remains sensitive to any perceived criticism of its hard-won GST deal.
The exchange also raises questions about how states engage with critics and whether robust economic debate might be stifled by such strong reactions from government officials.
As the 2026 review of the GST distribution formula approaches, this incident signals that tensions over Australia's tax distribution system are likely to intensify rather than diminish.
