Mining royalties hands more to Victoria than WA

Victorians now get more money per person from mining royalties than West Australians due to GST distribution.

A West Australian treasury analysis has shown that each Victorian ‘earns’ $294 from mining royalties after the national pool of GST money is distributed, as compared to Western Australians who receive just $250 per person, according to The West.

This is despite Victoria providing only $43 million annually, which is only 1.7% of Western Australia’s $2.6 billion contribution.

According to the report, between 2006 and 2009, Victoria received an average of $1.5 billion from Australia’s mining royalties, while WA gained an average of only $600 million.

WA treasurer Christian Porter stated that Victoria is “making a killing”.

"Ports, roads, rail, electricity, water, native title – you name it, they don’t have to spend a cent on it," Porter said.

"It is without question the best deal going."

Victoria has very little mining activity compared to neighbouring states, although it does hold one of the world’s largest reserves of brown coal.

It charges very low royalties on brown coal, which is of a much lower quality compared to NSW and QLD’s black coal.

The disparity between the royalty distributions is one the focuses for the Federal Government’s promised review of the GST system.

Porter said that the majority of the one off $350 million payment from Rio Tinto and BHP Billiton’s proposed iron ore merger went to other states.

According to Porter, WA gained only around 40% of the payment.

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