Confirmed: Tony Would Tear Money Out of State Budgets

03 April 2013

Liberal Western Australian Premier, Colin Barnett, confirmed to ABC Radio today that Tony Abbott has promised to fix the way the GST is distributed if elected.
I have had a telephone conversation with Tony Abbott in the last week and we are talking about trying to fix the system ... He made comments to me along the lines that, I dont think its sensible to hold back strong parts of the economy to simply prop up weaker parts of the economy.

COLIN BARNETT ABC RADIO 03 APRIL 2013

This means Tony Abbott would take over $600million a year from Tasmania and around $1 billion from South Australia if he becomes Prime Minister.
Moving to a per capita distribution would be in stark contrast to the current approach of GST distribution which ensures all Australians have access to materially the same services, no matter which state or territory they live in. This approach was endorsed by the GST Review earlier this year.
The Liberals are already on the record saying they would pursue a per capita distribution approach.
JOURNALIST: But its a matter of equity now for the Western Australians. You know that better than anybody on this show, and will you do something to rebalance those payouts to restore some equity?
JULIE BISHOP: We recognise Colin Barnetts argument on this point. Weve said that, Tony Abbott has said he will work with Colin Barnett on this matter, and well look at it should we get into Government.

JULIE BISHOP MEET THE PRESS 10 MARCH 2013


We agree that Western Australia should have a fair go and well certainly be looking at the GST in government.

JULIE BISHOP WESTERN AUSTRALIA 10 FEBRUARY 2013


I think that what ought to be very seriously considered by the government right now is the proposal that all the Liberal states have put up, that the GST revenue should be distributed on what is closer to a per capita arrangement. This is the unified position of the Coalition premiers. I think it makes a lot of sense.

TONY ABBOTT THE AUSTRALIAN 1 MAY 2012


I think it does seem quite unfair that the people of Western Australia get so little back for the GST revenue that they provide to the rest of the country.

TONY ABBOTT PERTH 1 MAY 2012

Tony Abbott needs to tell families in South Australia and Tasmania why their state budgets which support the delivery of health and education and infrastructure should be hacked into just so Tony can take care of his Liberal mates.