Kate Chaney ‘absolutely’ supports GST deal after fellow teal joins chorus of east coast critics (18 Feb 2023)
Article summary: Kate Chaney, the MP for Curtin, has firmly supported the existing GST deal, countering criticism from fellow independent and east coast critics. She argues that removing Western Australia's GST floor would not meet a basic fairness test, advocating for the deal that ensures WA receives a fair share of GST revenue.
This stance comes amidst renewed debate over the GST distribution, sparked by economists' warnings of potential cost blowouts and criticisms from Sydney-based independent Allegra Spender, who questions the fairness of the current system given WA's financial capacity from high iron ore prices.
Chaney's support for the 2018 GST arrangement, which guarantees WA's 70¢ in the dollar GST share, increasing to 75¢ from 2025, is rooted in the principle of fairness and the need to avoid disadvantaging the state.
She highlights the importance of maintaining the GST floor to prevent a scenario where WA is left subsidising the rest of the country to an unreasonable extent. Chaney also points out the adverse effects of removing the GST floor on investment in mining critical minerals, emphasising the national interest in resource development.
The controversy over the GST deal has elicited strong responses from the WA Government, with Premier Roger Cook and Treasurer Rita Saffioti defending the arrangement and cautioning against any attempts to modify it. The Federal Government has reiterated its commitment to the deal, extending top-up payments to ensure no state or territory is disadvantaged.
While Chaney advocates for keeping the GST deal as is, she calls for a broader discussion on tax reform. She suggests considering various changes to address the challenges posed by an ageing population and the need for a fair, efficient and simple tax system.
