The changes to the way in which revenues from the GST are carved up among the states and territories imposed by the Morrison Government in 2019 (with the support of the then Labor Opposition) represent, IMHO, one of the worst pieces of public policy-making in Australia in at least 25 years. Among many other flaws, those changes have the practical effect of transferring more than $28bn over eight years from the Federal Budget to the Western Australian state government – the only government in Australia which is running and expects to continue running budget surpluses, and which moreover is the government of a state which is richer than the rest of Australia by a much bigger margin than any other state has ever been. But there is a glimmer of hope that this appalling situation could be reversed with the appointment of Danielle Wood as Chair of the Productivity Commission. The PC is required to undertake a review of the new GST revenue-sharing arrangements in 2026. And Ms Wood is on the record as identifying “winding back the WA GST deal” as an option that would “make a worthwhile dent in spending”.

2023-11-13 Danielle Wood the PC and HFE