Nahan hints at WA GST win
WA looks set for a big win on GST distribution after State Treasurer Mike Nahan let slip that Federal counterpart Joe Hockey planned to sit on a crucial Commonwealth report until after the NSW election.
The Opposition pounced on the revelation, saying it was evidence of political interference in the Commonwealth Grants Commission review.
But it also welcomed the news that WA appeared set to benefit, possibly at the expense of NSW.
The CGC has finalised a review of GST distribution methodology, conducted every five years, which WA is banking on to address its sliding fiscal fortunes.
After enjoying returns of 90 to 100 per cent of GST dollars until 2007, WA's share plummeted in response to surging iron ore royalty revenues to the current 38� in the dollar.
The iron ore price has since halved from $US117 a tonne before the State Budget last year to $US58 a tonne, prompting a $1.8 billion downward revision of royalty income.
But WA will not see a corresponding bounce in GST because of a three-year "lag" in calculations.
Dr Nahan told question time yesterday that WA had made two key requests of the review - to reduce the lag and recognise WA's investment in mining infrastructure which benefitted the nation.
"Joe Hockey has written to the CGC and said, 'Take those things into consideration'," Dr Nahan said.
"Joe Hockey now has the review from the grants commission on his desk, though he won't release it for a short period of time until the NSW election's over. He will release it properly to all the treasurers."
Shadow treasurer Ben Wyatt said it appeared WA would benefit from the review, "otherwise why would it be necessary to wait until after the NSW election (on March 28)".
He said the results should be released as soon as possible to allow State Treasury to prepare for the May Budget.
Asked whether the review was being withheld because of the NSW election, Mr Hockey said the Government had the report and would "now consider its recommendations and consult with the States in the usual ways prior to finalising 2015-16 GST relativities before the 2015-16 Budget".
