Since examining South Australia’s ‘bank tax’, there have been three more occasions where states have gone on the attack against the state of the federation, each more attention-grabbing than the next. The first salvo came from the WA Liberals, with their leader Mike Nahan stating that the party was considering legal action against the federal government over the way GST has been distributed. This unusual suggestion caused a slight ripple, but seems in hindsight more like a portent of something bigger to come. Secondly came the Victorian government, who flat-out demanded an extra $420 million to account for population growth on the back of arguing that Western Australia had actually been a net beneficiary of federal grants since federation. Finally, the WA Liberals returned with a bigger, though watered-down, warning, passing a motion to examine the feasibility of seceding from the commonwealth.
Other than attempting to give us the truly awful non-word ‘WAxit’, what is the logic behind these actions, and what is the Australian government planning to do about it?