Compromise on WA's GST deal not an option, Treasurer Rita Saffioti says

ABC NEWS (Australia)

WA's treasurer says there is absolutely no compromise on the table with other states and territories ahead of a looming GST review, arguing the existing deal "should be the minimum".

Transcript

00:00Treasurer Rita Safiotti, welcome to Stateline.

00:05Thank you very much for the invitation.

00:07Does WA's GST deal really work for Australia or does it work for your budget surplus?

00:13It absolutely works for Australia.

00:15One of our key messages is that a strong WA economy helps drive a strong national economy

00:22and also helps the federal budget bottom line.

00:25Over $100 billion of company tax came from the four big miners over the past five years

00:31to the federal budget bottom line.

00:34Without a strong WA we would have a massive impact on both the national economic figures

00:41but also the national bottom line.

00:43The Prime Minister has promised there won't be any change to WA's GST deal.

00:48Why did you spend a million dollars on a campaign?

00:51Well there's a Productivity Commission review that is happening right now.

00:55The terms of reference were released a few weeks back.

00:58So we'll be submitting our submission in February, by February.

01:02But every meeting that I go to of Treasurers, every meeting the Premier goes to of other Premiers,

01:08there's always this undermining of our GST deal.

01:12That commission isn't due to produce a final report until the end of next year.

01:17Why did you start so early?

01:19Well again to be proactive and to be on the front foot.

01:22We don't want to be on the back foot.

01:23We don't want to be responding to attacks or further attacks from the eastern states about our GST deal.

01:30Also the submissions are due by February.

01:33So there's a lot of work being done.

01:35We've also had a lot of engagement from industry in WA.

01:40This is a WA position and we've got businesses, whether it be the CCI, the CME,

01:47we've got WA industry wanting to back and be loud on our message to protect our GST deal.

01:54Don't you trust the Prime Minister's word on this?

01:57Absolutely, absolutely trust the Prime Minister and the Federal Government.

02:02But what we want to do is make sure that we stop or blunt the attacks from the eastern states.

02:09Are you enlisting high profile WA business figures to get on board with your fight?

02:14Through the CCI in particular we've got some very interested big business figures.

02:19We've already had an industry round table with representatives of companies.

02:24There's a lot of people that want to be involved.

02:27So we'll continue to work with cross industry.

02:29So you've spent a million dollars on a campaign.

02:32Seems like you're enlisting these high profile business figures in WA, yet you trust the Prime Minister.

02:38It doesn't sound like it.

02:40No, absolutely trust the Prime Minister.

02:42But as I said, this is about being proactive.

02:44This is about making sure our message is out there first.

02:49And blunting the attacks from the other states.

02:52We've been, in a sense, a bit of a punching bag for eastern state commentators.

02:58And people always want to sort of kick WA because we have been the strongest economy.

03:03But this is about us making sure our message gets across.

03:07What would you say to the argument that other states pay the price for WA's special deal?

03:12Well they don't, because through the No Worse Off guarantee they are in the similar position

03:17as they would be without the deal.

03:19So they're not paying the price.

03:21And the other point too is that they actually benefit through the higher iron ore prices in WA

03:28because it's a complicated formula.

03:31Are you open to a compromise here?

03:33No.

03:34Our bottom line is that the existing deal should be the minimum.

03:38I mean, even with the existing deal, we get 75% of the GST that's raised in WA.

03:46That's all we get.

03:47And we're still contributing $2.5 billion to the other states.

03:51That's already under this GST deal.

03:54So there's absolutely no compromise on the table?

03:57Not for us, no.

03:59Is this the end or will taxpayers see more of their money spent in your GST fight?

04:04A million dollars to protect $6 billion I think is very much money well spent.

04:10And, for example, if they were going back to the original proposals back before 2018,

04:19would have $6 billion ripped out from our budget.

04:23Treasurer Rita Safiotti, thank you so much for your time.

04:27.

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