Sunday 20 August 2017

One Nation wants Queensland to hand over $2.4b of its GST to WA



Jessica Marszalek, EXCLUSIVE, The Courier-Mail
August 20, 2017 12:00am
http://www.couriermail.com.au/news/queensland/queensland-government/one-nation-wants-queensland-to-hand-over-24b-of-its-gst-to-wa/news-story/b6bf9715d8c743a24e9300ffca94c0e6

ONE Nation has proposed new GST funding model to a Commonwealth review that would cost Queensland a whopping $2.4 billion in just one year.

The party’s WA branch has written to the Productivity Commission asking for the Federal Government to unilaterally abolish the current system without the agreement of states and distribute GST payments on a new, per capita basis.

Analysis of the Commonwealth Grant Commission’s own figures shows such a move would cost Queensland $2.4 million in 2017-18 alone.


One Nation leader Senator Pauline Hanson was caught out backing moves to rob Queensland of GST revenue in order to give it to WA.
The suggestion follows a political storm during WA’s election in March when One Nation Leader Pauline Hanson was caught out backing moves to rob Queensland of GST revenue in order to give it to WA.

At the time, Senator Hanson denied her WA leader’s assertions that she had backed a plan to reduce Queensland’s allocation for the benefit of WA, but audio of a Perth radio interview in January emerged showing she had.

Under determinations by the Commonwealth Grants Commission, WA gets 30¢ in every dollar of GST raised in the state (about $2 billion a year), while Queensland receives $1.17 ($14.3 billion).

The One Nation submission, signed by WA state president Doug Shaw and WA leader Colin Tincknell, demands the Horizontal Fiscal Equalisation method — which takes into account a state or territory’s capacity to raise revenue in distributing GST — be abandoned.

Although the Commonwealth and states have long argued national consensus is needed to change the GST carve up, One Nation relies on Parliamentary Library advice that Treasurer Scott Morrison can “simply direct the Commonwealth Grants Commission” to change the model.

One Nation state leader Steve Dickson said the WA branch of the party was free to make its own arguments.


“I will be fighting for everything Queensland deserves,” he said.

But Opposition Leader Tim Nicholls said One Nation had been caught out “trying to rip off Queenslanders with voodoo economics”.

“One Nation’s GST proposal would mean less money for our roads, hospitals and schools,” he said.

“It would mean higher taxes.

“You can’t represent Queenslanders when you want to rip away their GST — it’s disgraceful.”
Treasurer Scott Morrison tasked the Productivity Commission with the inquiry in April after continuing calls by WA MPs that the current system is treating their state unfairly.


Both Labor and the LNP oppose any move to change the current system, which recognises the difficulty of funding services across such a decentralised state.

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