Albanese Condemns Proposed Reduction in GST Distribution Tied to Sluggish Home Construction
GST is a sensitive topic for the Western Australian government, who have, for years, argued it does not receive its fair share of the GST pot.
Prime Minister Anthony Albanese strongly criticized the opposition for suggesting that GST payouts to states and territories be cut as punishment for failing to meet housing targets.
During a multi-day trip to Western Australia, a key state for the upcoming federal election, Albanese warned about the policy that could impact the state’s $36.5 billion share of GST distribution.
“My Labor government is completely committed to the GST deal for WA. It’s time for Peter Dutton and the Liberal Party to come clean. Do they support a fair share for WA?” he stated.
Albanese’s remarks come in response to Liberal Senator Andrew Bragg, shadow assistant minister for home ownership, who said cutting GST distributions and other penalties for non-compliance were “under consideration.”
“There are a lot of different things you could do in terms of the financial arrangements that exist between the Commonwealth and the states,” Bragg added, referencing a New Zealand policy that links housing completions to council funding.
Yet Albanese sharply criticized this approach, stating it would impact Western Australia most.
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“Andrew Bragg has put Australians on notice that he’s coming after the GST. It’s the people of Western Australia and other states who’ll be hit hard where it hurts, and where it will hurt is education, health, TAFE, infrastructure—that’s where it will hurt,” he said.
GST is a sensitive topic for the Western Australian government, who have, for years, argued it does not receive its fair share of the GST pot. At the same time, political parties have tread carefully around it due to the importance of voters in the region.
Albanese also argued that it didn’t “make sense” to threaten states with GST cuts, saying it was “their money that people contribute.”
He also took the opportunity to criticize the Coalition for delaying building projects.
“I tell you what the Coalition can do if they want more homes built—get out of the way.”
Meanwhile, federal Labor has launched an attack ad on the GST distribution deal.
The ad highlights a 2018 deal under which WA was guaranteed a 70 cents-in-the-dollar minimum in annual GST redistribution.
The ad features quotes from high-profile Liberals, including former PM Scott Morrison, former Deputy Leader Julie Bishop, and former Minister Ken Wyatt, all suggesting that Dutton opposed the deal at the time.
