GST WA: What would changes to the distribution mean?

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If you would like to show your support in keeping WA’s fair share of the GST, you can have your say below.

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To understand what potential changes to Western Australia’s GST share would mean we should first look at what we currently have allocated. 

What does the current GST share mean for WA

Key facts:

• WA’s GST funds our local hospitals and schools, and it’s also invested in essential infrastructure like roads, ports and power - supporting WA projects that drive the national economy and produce almost half of the nation’s exports.  
• WA represents 11% of the nation’s population but currently receives only 8.2% of the GST share.  
  • If the GST distribution reverts to pre 2018 reforms, WA’s share would fall to only 2%.
• WA has the largest land mass in Australia but receives less GST than smaller States for regional and remote costs.
• In 2023-24, WA’s contribution to the nation was over $13,000 per person –19 times that of NSW (at around $700 per person) – the only other State making a positive contribution  
• WA still has a lower GST share per person than any other State has ever received, even with the 2018 GST reforms. 

How WA’s GST contributes to the rest of Australia 

Key facts:

• WA subsidises other States via the GST system by around $2.5 billion per year. Since the GST reforms began, WA has contributed $15 billion to the other States.  
• WA produces over 45% of Australia’s goods exports but only receives 8.2% of the GST share. Without the 2018 GST reforms, WA would receive only 2%.
• WA produces Australia’s highest Gross Domestic Product per capita ($155,644) but receives the lowest GST share per capita ($2,563).
• WA retains only 11% of its iron ore, nickel and lithium royalties, with the other 89% given to other States. In comparison, other major mining States keep up to 98% of their mining royalties.

A strong WA economy means a stronger national economy. WA’s GST is working for all of Australia. 

Keeping WA’s fair share of GST

WA isn’t seeking a greater share. By keeping the current GST distribution Western Australia can:

• Better fund services in regional and remote areas, which cost more to deliver
• Continue to invest in critical infrastructure projects like roads, ports and transport that the industry relies on
• Grow and maintain strong goods exports globally
• Keep a strong economy, which means more jobs and improved services for everyone
• Continue to contribute to Australia’s Gross Domestic Product and GST, which benefits all of Australia. 

Have your say about GST reform

If you would like to show your support in keeping WA’s fair share of the GST, you can have your say below.

Have your say