Letter

In response to Western Australia is rich, but it's not the economic powerhouse it claims to be

Ignoring WA's disproportionate contribution

Mr Eslake’s recent critique of Western Australia’s GST arrangements exemplifies (yet again) Mark Twain’s famous observation about statistics being used to mislead rather than inform.

The author selectively focuses on GST growth rates while ignoring the fundamental issue: Western Australia’s disproportionate contribution to national wealth.

Whether WA is a “powerhouse” or not, is merely a device to generate soundbites from NSW pollies and Murdoch commentators.

The real issue is whether the GST distribution system should penalise states for resource endowments and economic efficiency. The 2018 reforms simply addressed a system that had become punitive to the point of absurdity.

Perhaps for balance, Mr Eslake could do a piece illustrating the GST scenario for WA in the decade prior to 2018?

— Chris picard from Perth