Key facts
- The Productivity Commission found the GST deal with Western Australia to be a costly mistake.
Australia's Productivity Commission has labeled the GST deal with Western Australia, implemented under the former Morrison government, a "costly mistake" that has funneled tens of billions of taxpayer dollars to the state. The commission found the reforms achieved few objectives and reduced equity, costing taxpayers nearly $23 billion. Meanwhile, crossbenchers and the Greens are criticizing the Australian government's proposed overhaul of the National Disability Insurance Scheme (NDIS), warning of indiscriminate cuts and negative impacts on disabled individuals and their families. The NDIS bill, aimed at curbing the scheme's growth, is expected to pass Parliament soon.
Australia's Productivity Commission has strongly criticized the Goods and Services Tax (GST) deal with Western Australia, implemented during the Morrison government's tenure, deeming it a "costly mistake" that should be reversed. The commission's findings indicate that tens of billions of dollars in taxpayer money have been directed to Western Australia under this arrangement. The reforms have reportedly achieved few of their stated objectives and have made the overall system less equitable, with an estimated cost to taxpayers of nearly $23 billion to date.
In parallel, a significant overhaul of the National Disability Insurance Scheme (NDIS) is facing opposition from crossbenchers, including Senator David Pocock, and the Greens. These groups have voiced concerns that the proposed changes are happening "too far, too fast." They warn that the NDIS overhaul could result in indiscriminate cuts to the scheme and have a negative impact on disabled individuals and their families. The government's bill is designed to curb the scheme's rapid growth and is anticipated to pass through Parliament in the near future.
The GST deal with Western Australia was intended to provide a revenue floor for the state, ensuring a minimum level of GST revenue. However, the Productivity Commission's assessment suggests that the economic and fiscal objectives have not been met, and the financial burden on the rest of the country has been substantial. The NDIS, established as a landmark scheme to provide support for Australians with permanent and significant disabilities, has experienced significant cost growth since its inception, prompting the government's proposed reforms aimed at ensuring its long-term sustainability and efficiency.
Australia's Productivity Commission has strongly criticized the Goods and Services Tax (GST) deal with Western Australia, implemented during the Morrison government's tenure, deeming it a "costly mistake" that should be reversed. The commission's findings indicate that tens of billions of dollars in taxpayer money have been directed to Western Australia under this arrangement. The reforms have reportedly achieved few of their stated objectives and have made the overall system less equitable, with an estimated cost to taxpayers of nearly $23 billion to date.