A review into the effectiveness of the formula used to distribute GST around Australia has found HFE (Horizontal Fiscal Equalisation) is “deficient” and “ineffective” and at the same time has acknowledged the lack of funding re-directed to Western Australia’s coffers.
“The Productivity Commission Review into the GST and specifically Horizontal Fiscal Equalisation has outlined many anomalies within the system and has noted the severe lack of funding coming through to WA” said One Nation Senator Peter Georgiou.
The review also found the system to be “beyond comprehension by the public and poorly understood by most within government-lending itself to a myriad of myths and confused accountability”.
“What the review also revealed is that for the best part of 20-years Western Australia has been receiving less GST than Queensland, ACT, South Australia and Tasmania which shows that this is not a gripe which has emerged just overnight” the Senator said.
“When WA receives just 34.4 cents in the dollar it’s no wonder some constituents are so unhappy they are going to great lengths calling for WA to secede.
“My office lodged a strong submission to the Productivity Commission’s review arguing the formula (HFE) was unfair to the interests of WA. I will also be aiming to make a submission on the draft report with a view to influence a better and stronger outcome for all Western Australians” the Senator added.