Long-serving state government under-treasurer Michael Barnes will take up a key role in the battle to retain WA’s share of GST distribution, ahead of a review to be handed down in 2026.
Long-serving state government under-treasurer Michael Barnes will take up a key role in the battle to retain Western Australia’s share of GST distribution, ahead of a review to be handed down in 2026.
Mr Barnes will leave the under-treasurer role after 11 years in April next year, and will lead the state’s response to the upcoming Productivity Commission review of 2018’s GST reforms.
The move, announced by the state government today, marks a scale up in efforts to protect WA’s share of the GST’s distribution: protected by a price floor of 70 cents for every $1 collected from the state, rising to 75 cents in the dollar this financial year.
The floor is the lowest among the states, but WA’s economic boom has resulted in a significant GST windfall, which has prompted calls for change to distribution arrangements.
The GST distribution arrangement will be the subject of a review by the Productivity Commission next year, which will deliver its findings in 2026.
Mr Barnes has been credited as a key figure in securing the price floor in 2018 and restoring the state’s triple-A credit rating from major agencies S&P Global and Moody’s.
His position will be funded from a $1.6 million GST protection kitty set aside by former premier Mark McGowan in the 2023-24 state budget.
Mr Barnes is the first of three “fairness fighters” to be hired from the pool.
Premier Roger Cook said the appointment highlighted the significance of securing WA’s GST share.
"Protecting our fair share of the GST is a significant task, if not one of the most important challenges WA faces over the coming years,” he said.
"Having Michael Barnes lead that work puts WA in the strongest position to defend our GST and prevent the east coast from trying to wind back the reforms we secured in 2018.
"We can't take anything for granted when it comes to our GST share, and Michael's appointment as chief GST fairness fighter will ensure WA has the strongest case."
Mr Barnes has worked in the Department of Treasury for 27 years.
“Any changes to the current GST distribution arrangements stemming from the Productivity Commission review have the potential to significantly undermine the state's financial position,” he said.
“I look forward to defending WA's fair share of the GST as our state's chief GST fairness fighter.”
The GST distribution deal has been the subject of significant scrutiny on both sides of the Nullarbor, with Tasmanian economist Saul Eslake labelling it the “worst public policy decision of the 21st century”.
The WA government has consistently defended the arrangement, which has contributed to its economic recovery under the Labor government.
The recruitment process for a new under treasurer will kick off next year.
