Ben Morton (Tangney, Liberal Party) Share this | Hansard source

Our job is to deliver for all Australians. In five years, the Liberal-Nationals team have made a lot of progress to deliver a strong economy and a more secure future. This government is delivering on its promise with our long-term fix to the GST that delivers for my home state of Western Australia. The Liberals' GST plan changes the GST distribution formula and introduces a permanent GST floor. This government will also invest more funding into the system so that every state is better off and every Australian stands to benefit from this fair and real fix to our GST system. A gradual rise in payments over the next eight years means no state will receive less than 75 cents in the dollar. Importantly for Western Australia, this delivers an additional $4.7 billion in GST between now and 2026-27—more funding to invest in schools, hospitals, roads and transport. The GST formula under the Liberals' plan will no longer penalise hardworking, entrepreneurial states like Western Australia that develop their resources and grow their economies. It's a fair go for those states that have a go.

But there's a bit of a problem, because in politics there are always choices. So it's fair that we have a look at where Labor is at in relation to the GST. Where is the Leader of the Opposition? Where is the shadow Treasurer? Importantly in WA, where are Labor's federal members and senators from Western Australia in relation to this important fix of the GST system? Together they've hung WA out to dry. They haven't backed this government's full GST plan. They haven't got any ideas of their own to fix the GST formula. In fact, WA Labor members and senators shamefully walked away from their home state in their own submission to the Productivity Commission's review of the GST, saying that they 'seek an outcome to this situation but one that doesn't negatively impact on other states and territories'. They had no solution of their own. In fact, Labor's solution is always the same old solution: it's about taxing you more to pay for their promises.

The Rudd and Gillard governments did nothing to fix the GST. After holding out for so long, the Leader of the Opposition has been dragged kicking and screaming to support just one part of the Liberals' GST fix in supporting a floor in the GST. The GST floor is a very important part of the plan. It's set at 70 cents and then up to 75 cents. For WA it will mean $3 billion in additional GST over eight years, which is very important for my state. It is funding that can be invested in hospitals, schools, roads and other essential infrastructure.

When it comes to fixing the GST formula, Labor will not take any action. Labor's single and shameful idea to fix the distribution of GST would not change in any way the way the distribution of the GST is arranged. Labor's refusal to even consider changing the GST formula would mean WA would miss out on $1.7 billion in additional GST. That's like funding the Roe 8 and Roe 9 projects, with millions left over to fund other vital road projects. That's like funding the Perth Stadium or dozens of schools. That's another Fiona Stanley Hospital. Labor's position is outrageous.

Western Australians have labelled Labor's GST position as smoke and mirrors because that's exactly what it is. They have no vision towards fixing the GST system. Labor, with their refusal to change the GST formula, is letting down every single Western Australian. To this date, the government has already invested an extra $1.4 billion in additional essential infrastructure and hospital funding for WA to top up our fair share of the GST. It was the first government to do so. The top-up funding has been invaluable investment in our state. The top-up funding for individual states is never going to be a long-term solution to the GST, but it's a solution. Labor's only solution is taxing Commonwealth taxpayers more.

The GST formula needed to change, and it will. The Prime Minister tasked the Productivity Commission to report on the impact of the GST distribution on national productivity and economic growth. As every single Western Australian has predicted, the PC inquiry confirmed that the system for distributing GST was broken and, indeed, needed to be fixed. The inquiry gave this government the evidence it needed to make critical long-term GST reform and reform that sticks.

As the Prime Minister said, the Productivity Commission's GST review only happened through the strong advocacy of WA Liberal members and senators, and to my colleagues I pay tribute. The hard work of WA Liberal members of parliament, senators and, indeed, all Western Australians kept this government focused on delivering this real solution. Every Western Australian knows well that the GST formula is the exact thing that created the issue of WA's abysmal share of GST off the back of the mining boom. It should be as obvious to Labor as it is to every Western Australian that the only way to fix the GST formula is to fix the GST formula. I look forward to my friend the member for Fremantle—and I welcome him back to this House—confirming that the Labor Party will indeed support adjustments to the formula and give away the notion of their tax-and-spend approach to fixing this problem—an approach that they so dearly hold onto even today.

We are committed to transitioning to a new GST system and a new GST formula over eight years, in a way that's fair and sustainable and benefits of all Australians, benchmarking all states and territories to the broad based economies of the two largest states, New South Wales or Victoria—whichever is higher. It will remove those extreme circumstances like the mining boom from Australia's GST distribution system. Entrepreneurial states that seize and develop their opportunities, like WA, will do well. They will no longer be penalised.

This government's GST changes will reinforce and protect the fair-go system used to distribute the GST. States that have a go will get a go through the new GST distribution formula. To assist the transition, the Commonwealth will provide short-term funding to ensure that no state is worse of and to make sure that no state receives less than 70c per person per dollar of GST. As I said, this rises to 75c in 2024-25. There will also be permanent additional Commonwealth contributions to the GST funding pool, so all states will benefit. This is not a bandaid. This is not a political quick fix. It was something that took time. It was something that the Treasurer, now Prime Minister, was committed to fixing in a methodical way, which will mean that this fix will stick. It's a real plan and a long-term solution, and it has been welcomed across the country.

Front pages, state-by-state, back the Prime Minister and back this government's plan on the GST. TheDaily Telegraph said:

The bottom line of landmark tax reform. Finally: a fair dinkum share, ScoMo's GST fix levels playing field …

The Herald Sun, in Victoria, wrote, 'Treasurer guarantees Vic GST.' Even The Mercury wrote, 'GST fix revealed: the land of the fair go.' The Courier Mail and The Advertiser also backed in the very good work that our prime minister has done to fix this problem that has evaded so many before him and has evaded the Labor Party totally. Importantly, The West Australian wrote:

GST fix: Treasurer delivers on promise to change formula to help WA

It's that change in formula that is ever so important. The Chamber of Commerce and Industry WA's Rick Newnham said, 'We've got a good solution on the table from the federal government.' The Prime Minister is clearly a friend of Western Australia as the architect of this government's GST fix, which will benefit all states and territories. The Prime Minister's leadership on the GST, on tax relief to encourage and reward hardworking Australians, backing businesses to create more jobs, getting electricity prices down and doing more to help farmers facing drought—he is delivering for all Australians.

The Liberals' plans to fix the GST will make sure the GST works for WA and for all Australians in a way that is fair and long term. It is a real solution—a long-term, permanent solution that every Labor member from WA and every Labor member of the state parliament should be supporting. The days of politics on this issue should be over. It should be acknowledged that finally we have a Treasurer—now Prime Minister—that has fixed the problem. I'll be interested to know, absolutely, whether the federal member for Fremantle will continue to play politics on this issue or whether he will join in this fix, which has been so welcomed, and make his party's position clear. Will he join us and support this fix? Will he get on, take the GST out of the realm of politics and support this fix so it can get done?

See this speech in context