GST floor important first step
13 June 2018
The opposition’s commitment to lock in a GST floor for Western Australia is an important first step in fixing a broken system, Business Council chief executive Jennifer Westacott said today.
“All Australians regardless of where they live should be able to access reasonable standards of services. A floor funded by the Commonwealth will provide stability in times of economic boom or large disparities between states.
“The GST distribution formula is overly complex, acts as a disincentive to productive economic reform and is in need of urgent change so it can better respond to changes in the economy.
“All parties need to consider the Productivity Commission’s report carefully with a view to charting deeper and enduring reforms of the federal and state arrangements.
“Agreement on the transition has always been the obstacle. What we have to find now is a way to clear that hurdle.”
The Business Council’s submission in July 2017 to the Productivity Commission Inquiry recommended introducing a floor that was progressively raised. You can read the Business Council’s submission here.
Business Council media team
02 8224 9214