A Shorten Labor Government will invest $1.6 billion in a Fair Share for WA Fund – bringing Commonwealth funding for Western Australia up to the equivalent of a 70 cent floor.
Right now, Western Australia is not receiving its fair share of Commonwealth funding. There is no clearer example of this than the very low share it is receiving from GST distributions – currently 34 cents in the dollar.
Federal Labor will fix this by delivering more funding, more infrastructure and more jobs for Western Australia.
This is a massive investment in jobs and infrastructure for Western Australia – and shows WA will always be better off with a Federal Labor Government.
The Fair Share for WA Fund will be enshrined in legislation and include a statutory obligation to invest all proceeds into Western Australian projects – creating jobs and boosting economic growth across the state.
Federal Labor has worked closely with the McGowan Government in the development of this package. In government, Federal Labor will allocate funding to projects with the agreement of the WA Government.
This funding is above and beyond existing Commonwealth funding, and will be exempted from future Commonwealth Grants Commission assessments.
This policy does not change the current GST formula. We will consider the Productivity Commission review findings, but we are ending the cross-country argument over winners and losers, and ensuring every state gets the support they deserve.
We will help Western Australia without hurting the eastern states – with more money and more certainty for the future.
This is the first serious solution to Western Australia’s Commonwealth funding disparity. It is the result of the advocacy of Federal Labor’s WA representatives in Canberra, and months of productive discussions between Federal Labor and WA Labor.
Malcolm Turnbull says he recognises the problem, but he isn’t doing anything to fix it.
Western Australians don’t want more talk, more reviews, or more buck-passing. They just want their fair share – and that’s what Labor will deliver.
Labor is able to make this investment as a result of policy announcements that make our tax system fairer and improve the budget position.
These include reforms to negative gearing and capital gains tax concessions, closing loopholes for multinationals, and limiting tax minimisation through incoming splitting from discretionary trusts.
Labor will announce further budget improvements prior to the election.
More information on Labor’s announcement can be found here.