Anthony Albanese must guarantee he will not take away WA’s fair share of GST, after a prominent Australian think tank called for it to be scrapped to pay for Labor’s increased spending.

The GST deal was legislated by the Coalition in 2018 and ensures WA receives at least 70 cents for every dollar it contributes.

With Labor treasurers in NSW and Victoria also calling for Treasurer Jim Chalmers to scrap the deal, Shadow Treasurer Angus Taylor said it was imperative the government rule out any change to the arrangements in future budgets.

“The Treasurer confirmed this morning that he would consider and “listen carefully” to the proposals put forward by the Grattan Institute, which include reversing the WA GST floor,” Mr Taylor said.

“The Prime Minister has already broken his promise not to raise taxes on superannuation and franking credits that he made before the election.

“It is critical he does not break this promise.

“West Australian families are already hurting from this government’s failure to take action on cost of living and play its role to bring down prices. It is critical that he assure West Australians that they will not be worse off to pay for his government’s higher spending.”

Shadow Minister for Employment and Workplace Relations Michaelia Cash said the Coalition’s GST Deal was essential to Western Australia’s prosperity.

“The Coalition’s commitment to Western Australia’s GST was clear: it was a forever deal,” Senator Cash said.

“This meant billions of dollars more for Western Australian hospitals, schools, police, nurses and teachers.

“The Western Australian economy is a powerhouse for our national prosperity, producing more than 50 per cent of Australia’s exports. It is essential that West Australians receive a fair share of the GST pool.

“Anthony Albanese has already broken two promises on tax. With Victorian Labor calling on him to pay for their failure to manage their budget, it is essential the Prime Minister guarantee Western Australians won’t have to pay more for Labor’s inability to stop spending.”

ENDS.