Western Australia's GST Windfall: A Controversial Deal

0:00Local headlines in two minutes or less, you're tuned into Sydney News today. West Australia is set to receive $9.3 billion in goods and services tax revenue for the financial year 2026. That $6.6 billion more than the $2.7 billion it would get under the standard formula used for other states. This boost comes from a special deal, despite the state posting a budget surplus. The arrangement started in 2018 to address complaints that the usual system unfairly penalized Western Australia's mining riches. It guarantees the state a minimum share, with the federal government covering the difference from other funds, so no one else loses out. The current labor government extended the deal. Economists have slammed it as unfair, saying it has already cost national taxpayers $36 billion and could hit $60 billion over the next five years. Critics argue this lets Western Australia's residents enjoy stronger public services and lower taxes compared to other states.

1:00New South Wales takes the biggest hit and share percentage, dropping to 25.5%, while Queensland gains ground at 18%. Still, every state and territory gets more absolute dollars because total GST collections rose by nearly $6 billion this year. The deal runs until 2029 and Western Australia is pushing hard for an extension through ads claiming it supports the national. Economy via exports. The grants commission's figures are now headed to federal approval, which is usually just a rubber stamp. This story is shared with support from our sponsor. When you need a moment alone, just lay back and listen.