Treasurer Ben Wyatt responds questions from the media about the Federal Government's response to the Productivity Commission's final report on the GST system.
The Federal Government has released and responded to the Productivity Commission's final report into the GST system.
The Commission has concluded the GST system is fundamentally broken, reducing incentives for States to develop their economies. The Commission said that reform would be in the national interest.
To fix the system, the Commission proposes that States be equalised to the average fiscal capacity of all States, rather than to the fiscal capacity of the strongest State (currently Western Australia). This reform option was supported by the WA Government in its submission to the review.
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