How horizontal fiscal equalisation works

This year Western Australia will once again be the big winner in the GST carve-up, with $6.6 billion from taxpayers heading its way as part of a sweetheart deal which will cost Australia about $60 billion in the next five years. That’s despite WA’s very healthy state coffers. The mineral-rich state has been running a surplus for 8 years, while running down debts. So how does WA keep justifying the deal?

• Guest: Shane Wright – Senior Economics Correspondent for the Age and the Sydney Morning Herald. 
• Producers: Jack Schmidt/ David Marr