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Premiers war over GST jibe

Getty

Getty

The row between states over GST revenue got ugly this afternoon when WA premier Colin Barnett brought the Black Saturday bushfires into the debate, enraging Victorian premier Daniel Andrews.

Mr Barnett, who has been campaigning for a freeze on the GST share WA collects, said Victoria should support his cause, but crossed the line when he met resistance.

The argument has overshadowed the opening of the Council of Australian Governments in Canberra, where Mr Barnett has just landed ahead of the meeting.

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Speaking on 6PR radio this morning, Mr Barnett said: “When Victoria had those tragic fires a few years back. WA was the first state and the most generous to provide financial assistance. Perhaps the new Treasurer has a short memory or is not aware,” Mr Barnett said.

Mr Andrews slammed the comments as ”disgusting” and demanded an immediate apology from his counterpart.

”How the Western Australian Premier could use the aftermath of the worst disaster in Australian history, which claimed the lives of 173 people, as an ‘I owe you’ – is beyond comprehension,’ Mr Andrews said.

“His comments are disgusting and on behalf of all Victorians, I ask him to apologise immediately.”

Meantime, Opposition leader Bill Shorten has come up with a $300 million solution to end a “cage fight” between Western Australia and the other states over the carve-up of GST revenue.

State and territory leaders have bickered in recent days over how the revenue, which the federal government collects on their behalf, should be distributed ahead of a meeting with the Prime Minister in Canberra on Friday.

Mr Shorten’s solution to the “bun fight” is for the federal government to give WA a transitional, one-off payment of about $300 million from the federal budget, rather than making any long-term changes to the GST distribution.

“What they don’t want is some sort of State of Origin bun fight over the GST,” the Labor leader told reporters on Thursday.

Mr Abbott has said he is willing to “politely” hear any and all suggestions, but has repeatedly insisted that GST is a state matter and thus should be resolved without federal intervention.

“If they are unhappy with how it’s distributed, it’s something they need to sort out for themselves.”

-with AAP.

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