Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

I rise today to draw the attention of the House to the Productivity Commission inquiry into horizontal fiscal equalisation. The report gives me great optimism that we can fix this broken GST system. It is clear from this report that we have a serious national economic problem on our hands. For many years, Western Australia has been stripped of billions of dollars in GST revenue. I have shared the frustration of 2½ million fellow Western Australians as our share of the GST pool has diminished. The Turnbull government is the only government that has acted, delivering top-up payments to compensate Western Australia—

Mr Keogh interjecting—

I will get to you, Member for Burt. Importantly, the Productivity Commission has identified the very flawed distribution measure. Horizontal fiscal equalisation has evolved with the best of intentions but has failed to achieve objectives. Because the Commonwealth Grants Commission aims to raise every state to the level of the highest performing state, Western Australia is haemorrhaging revenue. If we altered the horizontal fiscal equalisation to deliver a reasonable standard, WA would receive an additional $3.2 to $3.6 billion this year. It's clear the current system of horizontal fiscal equalisation is failing the national economy. The opposition, particularly those members from Western Australia, need to listen to the independent advice that this system is broken.

Opposition members interjecting—

It's time for the Leader of the Opposition, the shadow Treasurer and WA Labor members, including the member for Burt, to give bipartisan support to the PC recommendations. (Time expired)