Mr McGowan and Mr Perrottet are expected to clash over GST after the two leaders traded barbs over the issue in recent weeks.
Western Australia’s massive $5.6 budget surplus reignited the long-standing feud between the two states over the Goods and Services Tax and prompted Mr Perrottet – the then Treasurer – to call Mr McGowan the “Gollum of Australian politics”.
Mr Perrottet took little time after becoming Premier to turn to the GST as a key battleground, arguing “disagreement is good”.
“I’m not going to stand by and have NSW worse off because, while there might not be that much public interest in GST reform, it’s GST that pays for our schools and our hospitals and our nurses and our teachers and our police officers,” he said.
But the Western Australian Premier fired back declaring there was “little appreciation and gratitude” from NSW for the financial assistance provided by his state through its massive resources revenues.
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Mr McGowan said NSW under Mr Perrottet had been “very poor financial managers” and was using the GST debate to blame Western Australia.
“They managed COVID very badly and you can see the consequence of what’s happening in NSW now and instead of looking in the mirror they look west to blame us for their situation,” he said on Tuesday.
“So rather than attack Western Australia they should be grateful for what the people of this state have done in order to continue to fund their states.
“He (Mr Perrottet) has been the Treasurer now for however long but NSW’s financial performance have been appalling, but obviously we have managed our finances far better.”
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Mr McGowan argued the GST allocation already favoured NSW as Western Australia received 70 cents to the dollar, but Mr Perrottet has long lobbied for a change in the system.
Changes were made to the system in 2018 whereby no state would receive less than 70 cents in a bid to improve WA’s share which sat at around 30 cents.
Mr Perrottet has argued the changes risk placing a heavy financial burden on NSW and Victoria while WA’s economy continues to boom.
Mr McGowan said the new NSW Premier’s fight for GST changes could substantially affect WA’s economy.
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“The threat is real, it’s a clear and present danger to Western Australia and there’s little appreciation or gratitude for what we are doing for those states by producing the massive revenues the Commonwealth is pouring into those states,” he said.
“People like Mr Perrottet will no doubt try to use that (the 2025/26 GST review) and any other mechanism at his disposal to undermine the deal that Western Australia had.
“To be frank, I’m tired of listening to their whinging, they never stop whinging and the reality is we have supported them far more far more than they support us and they should stop undermining the deal.”
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Prime Minister Scott Morrison has already shot down Mr Perrottet’s calls for an expedited review, telling Perth radio: “The deal is done. It’s ended. It’s not something I’m revisiting”.
“As Prime Minister, I ensured that it happened. And WA is almost $5 billion so far better off because of that decision. And the one person you can trust to keep a deal is the one who did the deal, and that’s me,” Mr Morrison said.
It comes ahead of a federal election where several Liberal seats in Western Australia are in play where GST is expected to be a key issue.

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