‘I’ve signed peoples’ arms for goodness’ sake’: Albanese vows WA’s GST system will stay put

Prime Minister Anthony Albanese has assured West Australians the GST arrangements that have boosted the state budget by billions annually will remain unchanged while he is in the top job.

Albanese made the pledge during a press conference in Henderson in Perth’s south on Monday morning, in response to a Productivity Commission report that labelled the 2018 Morrison Government deal to introduce a 75-cents-in-the-dollar floor in the GST pool formula a “mistake”.

The Cook Labor government, industry groups, businesses and the WA community have heaped pressure on Albanese to be unequivocal about his support for the current arrangements.

His public comments to date only included a promise the western state would keep its “fair share”.

“What I believe is very clearly there will be no change to WA’s GST arrangements whilst I’m prime minister. That is my view. That has consistently been my view,” he told reporters on Monday.

The commission’s report was released on August 14 and Albanese denied he had waited until he came to WA to be more explicit in his position – referencing the time in 2024 when he used a marker to sign “no change to GST” on the arm of former West Australian journalist Dylan Caporn.

“I didn’t wait. Although it was very clear, and I’ve said it multiple times ... I’ve signed peoples’ body parts, for goodness’ sake. I mean, seriously,” he said.

The 2018 GST deal came with a no-worse-off guarantee to other states to get them across the line to agree to it.

That deal was expected to cost the Commonwealth about $2.3 billion, but now could balloon to $60 billion by 2030.

Asked on Monday whether he would extend the no-worse-off guarantee beyond 2030 to satisfy the other states, Albanese said he would have discussions with the other premiers.

“It is a good deal for the nation when you have an understanding and a clear, unequivocal position, being able to go forward with some certainty,” he said.

WA Premier Roger Cook, who had been publicly urging Albanese to offer complete support for the deal, was ecstatic.

“Prime minister, can I just say, look, I think every Western Australian is both relieved and pleased to hear the words from the prime minister today that Western Australia’s arrangements for the GST will remain,” he said at the press conference in Henderson on Monday.

“You don’t come to Western Australia on 45 occasions without appreciating that the Western Australian economy is driving the national economy, and we are very pleased that the prime minister has backed WA.”