A debate has resurfaced regarding the 2018 Goods and Services Tax (GST) distribution deal, which significantly altered how tax revenue is shared between the Australian federal government and the states. Economist Saul Eslake, a prominent voice in Australian economic policy, recently characterized the agreement as the “worst public policy decision of the 21st century thus far.”

The 2018 arrangement was designed to provide Western Australia with a higher share of GST revenue, addressing concerns that the state was receiving an unfairly low portion under the previous formula. Projections suggest the deal will result in an additional $60 billion in tax revenue for Western Australia over a decade. While the policy was intended to stabilize state finances, critics like Eslake argue that the current arrangements are irrational and unsustainable for the broader national budget.

The Guardian reports that neither the Labor Party nor the Coalition is likely to move to reverse the policy, despite the criticism. The article suggests that political considerations make a reversal of the deal highly improbable, regardless of the economic arguments presented by experts. The reporting frames the situation as a stalemate where political caution outweighs economic critique, leaving the current GST distribution model in place for the foreseeable future.