MCA calls for GST reform to ‘restore fairness’

The Minerals Council of Australia (MCA) believes Australia’s complex system for sharing nearly A$60-billion in goods and services tax (GST) revenues between the states and territories is broken as evidenced by the fact that Western Australia loses more GST than it collects in iron-ore mining royalties. Western Australia is budgeting to collect A$4.38-billion in iron-ore royalties in 2017/18; however, under the Commonwealth Grants Commission’s (CGC) assessment of mining revenues, A$4.52-billion in GST funding will be taken away from Western Australia this financial year.