Western Australia’s fiscal and economic future remains bleak and the Tony Abbott’s Budget offers little relief, Shadow Parliamentary Secretary for WA Alannah MacTiernan has warned.
WA's share of Commonwealth funding will fall to just 6.9 per cent of total Commonwealth payments in the coming financial year.
WA's GST revenue could fall as low as 18 cents for every dollar collected in the state, according to Commonwealth Grants Commission forecasts.
The GST share is a record low at 29 cents in the dollar, but the Commonwealth Grants Commission technical projections show it falling further to 23 cents in 2016/2017 and 18 cents in 2017/2018.
Treasury has given a second set of GST projections based on an iron ore price of $US48 per tonne, which sees WA’s share recovering slightly to 32 cents in 2016/2017 and 51 cents on 2018/2019 – but only if the iron ore price falls below current levels.
Mining investment is expected to fall by around 25 per cent in 2015/2016 and 30 per cent in 2016/2017, having a particularly adverse impact on WA’s economy.
“Unemployment is forecast to continue to grow but this Budget still does not offer WA a stable plan for jobs,” Ms MacTiernan said.
“The Abbott Government’s belated decision to follow Labor and offer a one-off infrastructure payment is welcome and may help soothe Colin Barnett’s budget blowout this financial year, but WA will be back to receiving a tiny proportion of Commonwealth payments the following year.
“This Budget is short sighted, unfair and fails the future test.
“While WA is facing a jobs crisis the only job Tony Abbott is worried about in this Budget is his own.”
THE HON ALANNAH MACTIERNAN MP
SHADOW PARLIAMENTARY SECRETARY FOR WESTERN AUSTRALIA
SHADOW PARLIAMENTARY SECRETARY FOR REGIONAL DEVELOPMENT AND INFRASTRUCTURE
MEMBER FOR PERTH