States GST stoush symptomatic of wider problem

After delivering his first budget, South Australian Treasurer Stephen Mullighan has called for major changes to the distribution of goods and services tax (GST) revenue, claiming the current system unfairly favours Western Australia at a time when that state is benefiting from a mining boom:

Mr Mullighan abandoned any sense of party loyalty in taking aim at his Labor colleagues in WA, saying every other state and territory also regarded the current GST arrangements as “outrageous”.

He said it was “simply unfair” that WA enjoyed increased GST revenues while reaping the benefits of a resources boom and that every other state and territory wanted reform.

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