Late Night Live - Separate stories podcast Why should WA get so much of the GST?
Mar 31, 2026
Shane Wright, senior economics correspondent covering federal-state finance, explains the WA GST carve-up. He outlines why the 2018 capped-GST deal was struck, how iron-ore shocks and falling receipts created budget gaps, and why costs have ballooned to roughly $60 billion. He also discusses political influence, who ends up paying, opaque rules like a $200m reclassification, and possible reform via the Productivity Commission.
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Two Thirds Of WA GST Was Leaving The State
- WA was effectively handing two-thirds of GST raised there to other states when iron ore boomed, creating political fury in Perth.
- Shane Wright says the result was Scott Morrison guaranteeing WA would keep most of its GST, reshaping federal payouts.
WA Premier's 2014 Pressure After Iron Ore Bust
- Colin Barnett pressured Canberra after WA's revenue collapse in 2014–15 and budget holes forced tough decisions.
- Shane Wright explains WA lobbied for a guarantee when GST receipts fell during the end of the resources construction boom.
Assumptions About Iron Ore Broke The Deal
- The capped-GST deal quickly blew out in cost because iron ore prices stayed high instead of falling as assumed.
- Shane Wright calculates initial $2.3–2.4b estimate became $12–14b, projecting ~$60b by 2029.