Restoring equity and fairness

The GST distribution system isn't working when Western Australia loses more GST than it collects in iron ore royalties. 

Australia’s complex system for sharing nearly $60 billion in GST revenues between the states and territories is broken as evidenced by the fact that Western Australia loses more GST than it collects in iron ore mining royalties.

Western Australia is budgeting to collect $4.38 billion in iron ore royalties in 2017-18. Yet under the Commonwealth Grants Commission’s (CGC) assessment of mining revenues, $4.52 billion in GST funding will be taken away from WA this financial year.

Modelling by the Minerals Council of Australia reveals that instead of putting the states on an equal footing, the mining revenue assessment leaves Western Australia worse off.

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