GST floor heat under Libs
The Chamber of Commerce and Industry WA has called on Federal Liberal MPs to immediately push for a change to the GST system ahead of the party’s State conference at the weekend.
In a letter to MPs, the chamber’s chief executive Deidre Willmott said they should press Prime Minister Malcolm Turnbull to use the conference to back the introduction of a floor below which WA’s GST share could not fall.
It comes after the move last weekend by Labor leader Bill Shorten to promise a $1.6 billion fund to be spent on WA infrastructure from 2019, taking WA’s effective GST share to 70¢ in the dollar. WA is currently receiving 34.6¢ in the dollar.
Ms Willmott said because Mr Shorten and Mr Turnbull were effectively supporting a 70¢ floor for WA’s GST, then the Liberal Party should start moving towards the change immediately.
She said a “ratcheting floor” should be introduced which would ensure WA’s GST share could not fall any lower.
As it increased, no other State or Territory would be left worse off.
“The time for a GST floor is now. I implore you to continue your advocacy within the Liberal Party so that Malcolm Turnbull can announce the introduction of a ratcheting GST floor this weekend,” Ms Willmott wrote.
She said once the Productivity Commission inquiry into the GST system was complete, the Federal Government should either carve out one-quarter of mining royalties or 20 per cent of all State revenue from the Commonwealth Grants Commission allocation.
CCIWA chief Deidre Willmott.