TREASURER Peter Gutwein has ramped up a war of words with his West Australian counterpart as a cross-country stoush over the GST intensifies. Distribution of the tax is guaranteed to dominate discussions when state and territory leaders meet on Friday, with WA demanding a much larger slice of the GST pie. Mr Gutwein on Wednesday labelled the Western Australian government ‘‘mendicants’’, arguing its ministers should gather up their dignity and concentrate on fixing their own finances. WA has threatened disengagement with the rest of the country if its GST share is not increased, as a significant slump in iron ore prices continues to wreak havoc on its coffers. Its GST split could drop to a record low of less than 30¢ in every dollar collected in the state, under the latest Commonwealth Grants Commission formula. WA has backed a proposal to see GST distributions from last year frozen – an idea mooted by federal Finance Minister Mathias Cormann – which would leave Tasmania $227 million worse off. But Mr Gutwein said all other states and territories did not want the latest carve-up outcome touched. He urged the federal government to sign off on the commission’s finding. Prime Minister Tony Abbott said it would be up to the states to solve the GST dispute among themselves. But Mr Gutwein dug his heels in as the warring treasurers refused to budge from their positions. ‘‘They [WA] should stop being mendicants,’’ Mr Gutwein said. ‘‘They should put away their begging bowl and stop coming to other states and territories asking us to fix a budget problem they have largely created themselves.’’ Mr Gutwein said any federal assistance given to WA must be dealt with separately. ‘‘If the federal government has a view that Western Australia needs special help then they should put in place a bilateral agreement separate to the Commonwealth Grants Commission,’’ he said. Mr Gutwein said the federal government must resolve the issue at Friday’s Council of Australian Governments meeting.
TREASURER Peter Gutwein has ramped up a war of words with his West Australian counterpart as a cross-country stoush over the GST intensifies.
Peter Gutwein
Distribution of the tax is guaranteed to dominate discussions when state and territory leaders meet on Friday, with WA demanding a much larger slice of the GST pie.
Mr Gutwein on Wednesday labelled the Western Australian government ‘‘mendicants’’, arguing its ministers should gather up their dignity and concentrate on fixing their own finances.
WA has threatened disengagement with the rest of the country if its GST share is not increased, as a significant slump in iron ore prices continues to wreak havoc on its coffers.
Its GST split could drop to a record low of less than 30¢ in every dollar collected in the state, under the latest Commonwealth Grants Commission formula.
WA has backed a proposal to see GST distributions from last year frozen – an idea mooted by federal Finance Minister Mathias Cormann – which would leave Tasmania $227 million worse off.
But Mr Gutwein said all other states and territories did not want the latest carve-up outcome touched.
He urged the federal government to sign off on the commission’s finding.
Prime Minister Tony Abbott said it would be up to the states to solve the GST dispute among themselves.
But Mr Gutwein dug his heels in as the warring treasurers refused to budge from their positions.
‘‘They [WA] should stop being mendicants,’’ Mr Gutwein said.
‘‘They should put away their begging bowl and stop coming to other states and territories asking us to fix a budget problem they have largely created themselves.’’
Mr Gutwein said any federal assistance given to WA must be dealt with separately.
‘‘If the federal government has a view that Western Australia needs special help then they should put in place a bilateral agreement separate to the Commonwealth Grants Commission,’’ he said.
Mr Gutwein said the federal government must resolve the issue at Friday’s Council of Australian Governments meeting.
