The GST carve-up is developing into an insoluble mess where no State can ever be happy. There always has been only one solution and that is to allow each State to raise (and/or lower) its own GST take. The States, not the Federal Government, should live or die electorally by its own administration of this tax.
It is inconceivable that WA still doesn’t get even 50 per cent back from what it raises.
Other nations’ VAT or equivalent is never split up between States, provinces or boroughs as ours is.
The raising or lowering of the GST take is impossible when all States have to agree to any change as there is always one or more States approaching an election.
Five per cent of the total States’ GST take should go to the Commonwealth for topping up in cases of natural disasters and other anomalies.
Any further adjustments can be administered by the Commonwealth Grants Commission in the normal way.
States already have the infrastructure to administer a tax, so there is no additional cost.
What we have now is self-induced madness.