Gambling tax exemption from GST split hurts WA

If the Liberal Party were really serious about fixing the GST for WA, they would have voted YES to include gambling revenue in the GST formula at the 2018 Liberal Party Federal Conference.  Instead they voted NO.

It is a little known fact that each state’s gambling revenues is not considered when the Commonwealth Grants Commission decides how much GST revenue each state should receive.

The states and territories that permit Club poker machines benefit from this situation receiving more GST plus significant revenues from Club poker machines and other gambling, far in excess of what Western Australia raises from the Burswood located casino. As a result, Western Australia’s share of Commonwealth revenue becomes GST welfare to these states.

Club poker machines and gambling revenues are another reason why WESTERN AUSTRALIA PARTY says

“GST formula is a LEMON and should be abolished.”

“Forget the GST formula which Liberal and Labor won’t fix, just give WA our 100% per-capita share of the GST revenue.”

If Western Australia received 100% of our per-capita share of GST, we could pay off debt, and provide a well-funded education, health and law enforcement service to all Western Australians.

Currently Western Australia receives $5.3 billion less than its capita share of the total GST revenue, and this shortfall is partly due to the exclusion of gambling revenues from the GST formula.

Vote 1 Russell Goodrick for Darling Range on 23 June 2018

Russell Goodrick for Darling Range Photo

 

GST causes social issues

The GST system rewards states for population growth and gambling.  These are big social issues facing Australia.

If Dick Smith was truly concerned about a sustainable population of Australia, he would tackle the GST system head on.  So far he hasn’t.

The GST system divides up the cash based on some criteria:

  1. A state must grow its population or it gets less GST (NSW, VIC).
  2. A state promoting gambling and receiving gambling taxes gets more GST (NT, NSW, VIC, QLD).
  3. A state can lock up its resources and get more GST (VIC, NT)
  4. A state can use GST for consolidated revenue and will still get more GST (NSW, VIC, QLD, TAS,)
  5. A state with falling population numbers will get less GST (WA)
  6. A state which digs up its minerals and farms every bit of arable land will get less GST (WA)
  7. A state which restricts gambling will get less GST (WA)

This GST system can change with a stroke of a pen by the Federal Treasurer, Scott Morrison from NSW.  It does NOT need the states to agree!

 

GST Colin Barnett the Federal Treasurer makes the decision 3

Peter Kennedy, Barnett back to beat the GST drum, Business News WA, 9 February 2018

 

So why doesn’t the federal treasurer reward Western Australia for it’s economic and social contribution to Australia with more GST?  Is he scared of losing political power from the states with the biggest populations and gambling problems?

Western Australia must use its political power to elect candidates who fearlessly represent the rights of our state to share in Commonwealth revenue.  Andrew Wilkie has done this for Tasmania, and Nick Xenophon has done it for South Australia.

It’s our turn to elect fearless candidates to both state and federal parliaments.