Australian tax payers will have to spend an extra $10billion in debt to cover to cover Western Australia’s GST deal made by Prime Minister Scott Morrison while he was treasurer.

Independent economist Saul Eslake says most people in WA have reason to say the GST share is unfair.

“Since the onset of the mining boom almost 20 years ago, Western Australia’s share of revenue from the GST has fallen considerably below what it would’ve gotten had it been shared out on an equal per capita basis,” he told Perth LIVE.

Mr Eslake says WA’s economy has remained strong while others have struggled.

“Western Australia is now the only government in Australia – and as fair as I can tell, one of only one of five in the world that is running budget surpluses both in the current financial year and for the next four or five year,” he said.

Mr Eslake believes the Federal Government’s deal with WA doesn’t make sense.

“I think it’s outrageous that principles that have been in place since the mid 1930’s, have now been in effect torn up in order to benefit what is now the richest state in the country,” he said.

Campaigning in Perth on this week, Mr Morrison said his GST deal would deliver billions in extra support to WA over coming years.

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