Western Australia is set to lose billions of dollars unless a floor on GST relativities is introduced.
WA currently receives less GST than any other state, and fore-casts suggest this rip-off will only get worse.
The Nationals WA Federal Member for O'Connor Tony Crook MP has led the charge to establish a 75 per cent floor on GST relativities - supported at a State level by The Nationals WA Parliamentary team.
This 75 per cent floor will deliver an estimated $1.8 billion back into WA in 2013-14 and an estimated $2.5 billion in 2014-15.
The lost GST revenue in 2014-15 is worth more than double the entire Royalties for Regions program in the same year, and is equivalent to funding the development of the new Albany Health Campus - the State's largest regional hospital development - 14 times over.
It would provide the State with enough funding to build a second Fiona Stanley Hospital, with change left over.
While WA currently receives a per capita relativity of 72 per cent, this is expected to plummet to just 33 per cent by 2014-15. No other state currently receives less than 91 per cent.
The current GST distribution is unfair and inequitable and must be remedied.
A 75 per cent floor on GST relativities will prevent any state from being unfairly ripped-off through GST distribution - while still allowing WA to contribute to the Commonwealth and other states and territories.
Find out more about the GST rip-off:
- Discussion Paper: A proposed floor on GST relativities