Morrison 'guarantee': WA's GST woes will be fixed before next election
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Morrison 'guarantee': WA's GST woes will be fixed before next election

Prime Minister Scott Morrison has promised his plan to fix WA's woeful share of the GST will be in place before the next federal election.

He has also had a crack at Labor's GST policy, saying the Opposition Leader Bill Shorten can't be trusted to implement an increase in the share of the tax returning to the state.

Mr Morrison told Gareth Parker on 6PR's Morning Show only he could be trusted by Western Australians to deliver a fair share of the GST because he was "the person who fought for it, designed it, delivered it, took it through my Cabinet, that got my party on side".

Prime Minister Scott Morrison during a Coalition joint party room meeting at Parliament House in Canberra on Tuesday.

Prime Minister Scott Morrison during a Coalition joint party room meeting at Parliament House in Canberra on Tuesday.Credit:Alex Ellinghausen

"I've been championing this for two years as the treasurer and I've been able to deliver the solution.

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"I still don't know what Bill Shorten's policy is, I've got no idea what Labor's policy is."

Mr Shorten said he would end the political "argy-bargy" between the major parties over the GST, but has refused to say whether he would agree to change the formula which determines how the tax is distributed to the states.

Labor had promised a 'Fair Share for WA' fund which would distribute grants to make up the GST shortfall.

Mr Shorten said he would back legislation to fix WA's share of the GST, an idea Mr Morrison did not reject.

"I don't reject the idea of potentially legislating this if that's what's necessary, but I'm not going to play games with it," he said.

"I'm not going to allow Bill Shorten to play games with the legislation.

"If he wants to back our policy, 100 per cent, no excuses, no exceptions, no games, well we can do that.

"But I'm not going to have him unravel this thing with tricky politics."

Mr Morrison said he would seek the state's agreement to change the distribution formula so WA would receive back at least 70 cents in every dollar paid in GST next financial year, rising to a floor of 75 cents in 2024/25.

This would cost the government $4.7 billion.

WA has long complained about its share of GST revenue distribution, in place since 2000, which dropped to a record-low of 29.99 cents during the mining boom due to the existing benchmarked system.

"Labor will support a unity ticket with the current government to make sure that Western Australia gets their fair share," Mr Shorten said in August.

"Labor's been leading the case and we've always been pleased when the Liberals have caught up, but now we want to put this beyond the realm of day-to-day politics."

WA's Chamber of Commerce and Industry said its modelling revealed Labor's policy would will leave WA $1.7 billion worse off relative to the federal government's proposal because it only committed to a GST floor and not a change in the formula.

"Now is the time for bipartisan support for GST reform in the national interest of every Australian," CCI chief economist Rick Newnham said.

"It is no longer appropriate to keep options open and leave the issue in limbo."

Nathan covers state politics for WAtoday. He is a former editor of the Mandurah Mail, where he also covered politics for Fairfax's regional titles.