Porter pushes new GST deal
The Prime Minister's parliamentary secretary, former WA treasurer Christian Porter, says 38c in the dollar is the best possible GST return the State can expect in the current political climate.
With the Commonwealth Grants Commission recommending WA's GST share fall to 30c in every dollar raised here next year, Federal Liberal ministers and backbenchers have intensified their efforts to freeze the distribution shares between the States for a year.
Speaking on 6PR radio yesterday, Mr Porter - who switched to Federal politics in large part to help tackle the issue of WA's GST share - said a freeze would put WA "miles ahead" of where it would otherwise be.
"A freeze at 38c in the dollar is not all I would wish for for this State - far from it," he said.
"But in terms of the art of the possible, I am going in very hard in support inside Government of that possibility.
"Because the bottom line is it's as good as we can possibly achieve given the rancorous nature of relations around the table at the recent Treasurers' meeting."
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WA Treasurer Mike Nahan said yesterday that freezing the GST distribution at 38c next year would likely result in an extra $500 million for WA.
The most recent Budget update in December forecast a $900 million deficit for 2015-16, but the significant weakening of the iron ore price since then means that the deficit is likely to be more than $1.5 billion unless further drastic measures are taken.
Federal Treasury has predicted the iron ore price could fall as low as $US35 a tonne, a level which Dr Nahan admitted would be a disaster for the State's finances.
"I've watched it plummet over the last year, and every time I thought there was a floor, I've been wrong," he said.
"So I'm just knocking on wood, hoping, and saying nothing."
Federal Treasurer Joe Hockey and Finance Minister Mathias Cormann have said recently that WA could do more to reform its domestic economy, including liberalising retail trading hours and selling assets such as Western Power or Fremantle Ports.
This has been strongly rejected by Premier Colin Barnett, who threatened non-co-operation with the Commonwealth and hinted that WA would slash its trade ties with the Eastern States and instead turn its attention to Asia.
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