Additional Commonwealth Support for Infrastructure Projects in Western Australia


The Commonwealth will invest an additional $490 million into Western Australian infrastructure in 2016-17, to ensure that Western Australia’s share of the GST is effectively maintained at its 2014-15 levels.

We are committed to ensure this investment helps Western Australia to successfully transition from resource investment driven growth to a stronger more diversified and innovative economy.

Western Australia continues to receive the lowest share of GST revenue, as a proportion of population share, of any State or Territory. This investment recognises this and effectively stops the drop in Western Australia’s share of the GST.

Specifically, historically high iron ore prices continue to affect Western Australia’s GST relativity despite the recent fall in those prices. These lower commodity prices in more recent times have yet to be captured by the GST sharing arrangement formula.

The decision to make this additional investment this year, follows a similar decision last year and fulfils a commitment to Western Australia then, to re-visit the impact of GST sharing arrangements on Western Australia, once the Commonwealth Grants Commission determination for 2016-17 had been made.

Western Australia has been the leading engine room of national growth for most of the past decade, attracting record investment into major resource projects of national significance.

Today Western Australia is on the frontline of our economic transition from resource investment and construction driven growth to broader drivers of growth.

The Turnbull Government is committed to working with Western Australia to invest in our future economic success.

The Turnbull Government will be working with the Western Australian State Government to identify the most appropriate infrastructure project(s) for this additional federal investment.

We are committed to ensure that our investment helps to reduce congestion, improve safety and strengthen growth and job creation.