Cook Government launches new campaign targeting eastern states critics of WA’s GST deal

“WA’s GST is working for Australia”. That’s the strong message the Cook Government will put through the eastern states from next week to counter attacks that WA’s GST deal should be scrapped. In a new $1 million advertising blitz that starts this week, the message will appear on billboards in Canberra, in national east coast newspapers and on social media. Ads will also be launched in WA, asking sandgropers to enlist in Team WA and make submissions to a review of the GST arrangements, and a WA website as to why the status quo should remain. Premier Roger Cook on Saturday told The Sunday Times that WA’s GST deal was helping all Australians – not just West Australians. “The bottom line is that WA’s GST is working for Australia, and my government is calling on business leaders and the community to come together as Team WA and help keep the share fair.” “This campaign is about educating east coasters that WA’s GST deal is working for all Australians – helping to pay for the infrastructure that drives the national economy, and funding projects that benefit all of us,” Mr Cook said. “We’re also asking Western Aussies to have to their say, which will help inform the government’s submission to the Productivity Commission. Prime Minister Anthony Albanese has to date made the right noises about WA keeping its 75¢ GST floor — which was legislated in Federal Parliament in 2018. But there are fears that east coast Premiers — whose budgets are bathed in red — will put significant pressure on the Albanese Government to make changes and that future administrations might totally cave in. There are also concerns within the WA Government that even if the current GST arrangements stay, the State will receive less in Commonwealth grants and funding to appease the east coast “whingers”. Treasurer Rita Saffioti said “the gloves are off” to defend WA’s fair share of the GST. “Even with the 2018 reforms, WA receives a lower GST share than any other State ever has,” she said. “It’s absurd to think that without these reforms, WA’s share would have plummeted as low as 10 per cent, when no other State or Territory’s share has ever fallen below 83 per cent.” Just this week, Tasmanian economist and chief GST deal critic Saul Eslake was in Perth as he maintained his criticism of the arrangements. He has previously described the 2018 GST deal as the “worst public policy decision of the 21st century”. WA received $7.4 billion in GST revenue in 2024-2025 — money that is being used on not just on infrastructure used to support the nation’s mining industry in WA, but on other infrastructure important to a growing WA, like schools, hospitals and ports. Losing the current GST deal would see WA lost nearly $6 billion every year. The Productivity Commission will review the 2018 Commonwealth deal that delivered WA no less than 75¢ in the dollar in GST receipts. Prior to that, WA’s GST take had slipped to below 30 cents in the dollar — the lion’s share of the annual multi-billion-dollar national GST take being divvied up amongst other states and territories. It meant that during years where WA’s royalty take was also low, because of falling iron ore prices, the state’s budget was in serious trouble, meaning the State struggled to keep up with the demands of new infrastructure needed to support the vital mining industry. East coast commentators and political leaders argue that WA, which is currently enjoying record iron ore royalties because of high prices and strong demand from China, doesn’t need the extra billions it gets each year in GST receipts. “My vision is for Western Australia’s economy to remain the strongest in the nation, and that’s why it’s critical that WA keeps its fair share of the GST,” Mr Cook said. “I know Anthony Albanese backs WA’s GST deal, which is why I will again seek his support and reassurance for no changes when I visit Canberra in the coming days. “We know some eastern states commentators will stop at nothing until the deal is scrapped – but we’re up for the fight. “The GST deal has helped my government to provide the infrastructure and services that power the nation.” On Tuesday, Mr Cook, Ms Saffioti and former under-treasurer Michael Barnes will meet with Prime Minister Anthony Albanese in Canberra as well as senior federal ministers Jim Chalmers and Murray Watt to personally put the case as to why the 2018 GST deal should not be rolled back. The Cook Government is arguing that the engine room of the nation needs continued financial support and must keep getting its fair share of GST dollars. Not that Mr Albanese needs much reminding of how valuable WA is to the national economy. The Commonwealth currently also enjoys billions of dollars from companies involved in the WA mining industry – something that would also be at risk if the west collapsed. In 2023-24, the Commonwealth received over $18 billion in company tax collections from the four largest WA iron ore producers. Over the past five years, the big four contributed more than $100 billion to the Commonwealth – more than six times the cost of the 2018 reforms over this period ($16 billion). East coast pollster Kosmos Samaras told The Sunday Times this week he doubted the WA ad blitz would change the minds of the parochial east coasters. “We are quite a parochial nation – very tribal,” he said. “Because people are parochial, they’re not going to listen. “It would be a brave political commentator in the easter states to take the side of WA. But he did say that the Cook Government’s efforts to fight for WA’s fair share of the GST would be welcomed by sandgropers. “This will show West Australians that they (Cook Government) are going into bat for them and are prepared to fight the other states,” he said. “From a marketing perspective it might not work, but from a (WA) campaign perspective it will.”