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WA ‘ready to fight’ to keep contentious $60bn GST deal as Chalmers orders distribution review

State treasurer expects bipartisan support in Canberra for existing deal will prevent changes, as NSW backs review of ‘busted’ system

A deal that will hand an estimated extra $60bn in tax revenue to Western Australia over a decade will come under scrutiny after Jim Chalmers tasked the Productivity Commission with reviewing the GST distribution.

The treasurer on Wednesday released the terms of reference for the scheduled Productivity Commission review in 2026, acknowledging that the GST carve-up between the states and territories “will always be a contentious issue”.

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