Mathias Cormann defends WA GST arrangement amid Productivity Commission criticism
Former WA senator Mathias Cormann said the state's GST deal is operating as intended, countering a Productivity Commission interim report that called it costly and unfair.
Mathias Cormann, a former Western Australian senator and former federal finance minister, defended the 2018 GST distribution deal, stating it functions exactly as designed and supports equal service delivery across Australia. His remarks came after the Productivity Commission released an interim assessment that described the arrangement as a costly error and recommended its termination. Western Australian Premier Roger Cook attacked the commission’s authors, calling them “east-coast clowns,” and said he has assurances from Prime Minister Anthony Albanese that the existing framework will stay in place.
South Australian Labor leader Peter Malinauskas echoed criticism, labeling the deal a “dud” for other states. Cormann highlighted the “relativity floor” added under the Morrison government to address perceived unfairness to WA and emphasized that no other state has been left worse off. The commission’s final report is due in December, at which point the prime minister will decide on any changes. Cormann maintained that while minor tweaks are possible, the core structure should remain unchanged.
Why it matters
The debate determines how GST revenue is shared, affecting state budgets and national fiscal balance.
In this story
