Western Australia’s Submission to the GST Distribution Review, Supplementary Terms of Reference

On 26 March 2012 the Western Australian Government made a  submission  to the Commonwealth’s GST Distribution Review, responding to supplementary terms of reference issued by the Federal Treasurer to the independent review panel in November 2011.

The supplementary terms of reference have been described by the Commonwealth as requiring the review panel to look at a mechanism to penalise States which undertake any further royalty increases, and direct the review to be guided by the Commonwealth’s position that its new mining resource rent tax is more efficient that State royalties. This is unacceptable to Western Australia.

Western Australia previously lodged a submission with the review panel in October 2011, responding to the original terms of reference which aim inter alia to produce a fairer and more efficient distribution of the GST among the States, instead of States facing penalties for economic growth and rewards for economic underperformance. This is strongly supported by Western Australia.