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Colin Barnett has a strong point on GST

Comments on CHALPAT SONTI “WA left out of national hospitals deal as negotiations break down”, 20/04/2010, http://www.watoday.com.au/wa-news/wa-left-out-of-national-hospitals-deal-as-negotiations-break-down-20100420-sr9d.html?posted=sucessful

The WA Premier has a strong point on GST for two reasons.

It is State revenue and should generally be left to the States unless there are solid reasons not to do so.

WA's GST allocation would be impacted significantly if no considerations on future GST allocation by the CGC are done.

Obviously, it is difficult to not to give up WA's 1/3 GST revenue given that all other States and territories have agreed to do so.

However, WA can and should ask the Commonwealth Treasurer to make sure WA is not disadvantaged financially by doing that. That is to say, the CGC assessments should make sure changes in health and the Commonwealth retaining 30% of GST should not affect future GST distributions.

The PM has said that publically that no States will be disadvantaged financially by health reform. So it is perfectly reasonable and realistic for WA Premier to achieve his goal.

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