Anthony Albanese Pledges No Change to Western Australia GST Deal

Prime Minister Anthony Albanese pledged on August 24, 2026, that the Goods and Services Tax (GST) arrangements for Western Australia will remain unchanged during his tenure. Speaking in Henderson, Perth, Albanese responded to a Productivity Commission report that labeled the 2018 Morrison Government deal—which established a 75-cents-in-the-dollar floor for the state—as a "mistake". The commission warned the deal has cost billions more than expected and increased inequality between states, with projections suggesting a cost to the Commonwealth of up to $60 billion by 2030.

Western Australia Premier Roger Cook welcomed the commitment. However, the decision sparked immediate backlash from other state leaders. Treasurers from Victoria, Queensland, and Tasmania argued the current system is unfair and threatens the integrity of the federation. Albanese defended the arrangement, stating that additional payments to Western Australia are funded by the Commonwealth rather than other states.

While the Prime Minister confirmed the formula for Western Australia is secure, he indicated he would hold discussions with other premiers regarding the potential extension of the no-worse-off guarantee for other states beyond 2030. The dispute is expected to lead to a confrontation at the national cabinet meeting on Wednesday.