The region continues to receive the lowest share of GST revenue, as a proportion of population share, of any state or territory. The investment recognises this and will help to ensure Western Australia’s share of the GST is effectively maintained at its 2014-15 levels.
According to a joint statement from the offices of Prime Minister Malcolm Turnbull, Treasurer Scott Morrison and Minister for Finance Mathias Cormann, historically high iron ore prices continue to affect Western Australia’s GST relatively despite the recent fall in those prices.
It asserts that these lower commodity prices in more recent times have yet to be captured by the GST sharing arrangement formula.
The Federal Government will be working with the Western Australia State Government to identify the most appropriate infrastructure project(s) for this additional federal investment.