According to sources inside the national cabinet meeting, the topic of GST redistribution was barely discussed, with federal officials deferring any potential changes to the existing agreement. The Prime Minister's office indicated that the current deal, which guarantees Western Australia a minimum share of GST revenue, will not be reopened for negotiation until 2027.
This news has frustrated state leaders, who argue that the current funding arrangements are inadequate to meet rising costs in healthcare, education, and infrastructure. Several premiers have indicated they will now collectively demand more federal cash outside the GST framework to balance their budgets.
The dispute centers on the GST distribution formula, which has been a source of tension between the states and the Commonwealth for years. Western Australia has benefited from a floor mechanism ensuring it receives at least 70 cents for every dollar of GST revenue it generates, a deal secured in 2018. Other states, particularly New South Wales and Victoria, have argued this arrangement leaves them short-changed as their populations and service demands grow.
While the exact details of the meeting remain behind closed doors, sources describe the tone as "tense" and "unproductive." The premiers are expected to formally present their joint demands for additional federal funding in the coming weeks, potentially escalating into a public dispute that could dominate the political agenda.
The federal government has so far offered no concessions, maintaining that the current GST framework is settled. However, the united front from the states suggests this issue is far from resolved.