Wesfarmers chair Michael Chaney defends WA’s GST deal

Wesfarmers chair Michael Chaney has joined the chorus of WA voices urging the Commonwealth not to scuttle the GST deal that has delivered the State a $43 billion windfall.

Mr Chaney, Nigel Satterley, John Poynton and Twiggy Forrest worked with the Chamber of Commerce and Industry WA on its GST submission submitted to the Productivity Commission this week.

“We can’t go back to a system that disincentivised the development of our resources, caused boom-and-bust fluctuations and worked against efficiency at a time when productivity growth has never been as important,” Mr Chaney said.

“Stability provides greater certainty and signals to international investors that Australia is a great place to invest and do business.”

In its submission to the Commission, which is reviewing the 2018 deal that delivered WA a no less than 75 cent in the dollar annual GST payment, CCIWA highlighted the economic stability the deal has brought “to underpin Australia’s most economically significant State”.

“Western Australia’s industry, businesses and workforce contribute significantly to the national economy, and the current GST system means this State can continue to do the heavy lifting,” Mr Chaney said.

“The 2018 GST reforms provide stability and give certainty in every state that a reasonable level of services and infrastructure can be delivered to grow businesses and communities.”

Submissions to the Productivity Commission closed this week.

The Federal Government is expected to make a decision on WA’s GST deal next year.

Political leaders, economists and commentators from the east have been whingeing for years that WA, because if its massive iron ore royalties, doesn’t need its new GST take - expected to be nearly $8 billion this financial year.

Just this week, the WA Government released its latest set of figures which showed the budget was heading for its eighth consecutive surplus.

WA recorded an operating surplus of $2.3 billion for the first half of this financial year.

The State budget is expected to be delivered in May.