Will Labor or the Coalition have the guts to reverse ‘the worst public policy decision’ of the century? Don’t be daft
News Source
•Fri, 14 Aug 2026 15:00:32 GMT
📰 What Happened
A top economist called the 2018 GST deal with Western Australia “the worst public policy decision of the 21st century.” The deal gives WA an extra $60 billion in tax money over ten years. The Productivity Commission has now released a report saying the deal was a costly mistake. It says the system should go back to being fair for all states. But the federal government is not expected to change anything. Both major parties are afraid to upset Western Australia’s voters.
🔍 The Backstory
The GST deal was made in 2018 under Prime Minister Scott Morrison. It was meant to help WA because the state gets less than other states from the GST pool. But the deal gave WA much more than needed. When iron ore prices went up, WA got even more money. Other states like New South Wales lost out. The economist Saul Eslake says the deal is unfair and costs taxpayers too much. The Productivity Commission agrees. But WA voters like the deal and politicians do not want to lose their votes. So the deal stays.
🎯 Why It Matters
This deal affects how tax money is split across all Australian states. If you live outside WA, your state gets less money for schools, roads, and hospitals because of this deal.
A top economist called the 2018 GST deal with Western Australia “the worst public policy decision of the 21st century.” The deal gives WA an extra $60 billion in tax money over ten years. The Productivity Commission has now released a report saying the deal was a costly mistake. It says the system should go back to being fair for all states. But the federal government is not expected to change anything. Both major parties are afraid to upset Western Australia’s voters.
The GST deal was made in 2018 under Prime Minister Scott Morrison. It was meant to help WA because the state gets less than other states from the GST pool. But the deal gave WA much more than needed. When iron ore prices went up, WA got even more money. Other states like New South Wales lost out. The economist Saul Eslake says the deal is unfair and costs taxpayers too much. The Productivity Commission agrees. But WA voters like the deal and politicians do not want to lose their votes. So the deal stays.
This deal affects how tax money is split across all Australian states. If you live outside WA, your state gets less money for schools, roads, and hospitals because of this deal.