The Productivity Commission has slammed the federal government’s eight-year-old GST deal with Western Australia as a “costly mistake,” costing taxpayers over $23 billion and unfairly skewing revenue in WA’s favor at the expense of other states. The report, sparked by then-Treasurer Scott Morrison’s controversial floor on state GST receipts, reveals “perverse outcomes” where WA gains while others lose — forcing the federal budget to cover the gap. While WA pushes back, NSW, QLD, SA, and VIC applaud the findings, arguing for equal national support. The commission now offers three fixes: scrap the deal, offer targeted direct payments, or lock in a fixed floor — with final recommendations due by December. Prime Minister Albanese says he’ll wait for the full report but promises WA will get its “fair share.”
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