Productivity Commission calls WA GST deal a costly mistake, urges scrapping it

A landmark interim Productivity Commission report has branded the eight-year-old WA GST deal a 'costly mistake' that must be changed, finding it drained $23 billion from the federal budget in six years — $22 billion of it flowing to Western Australia. The finding puts Anthony Albanese and Jim Chalmers in a bind, having endorsed and extended the deal to 2029, and reignites a fraught east-west fight over how the nation's tax pie is carved up. Listen for what the alternative options mean for every state's budget and whether the government will act before the December final report.

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