Today, Scott Morrison and Josh Frydenberg have executed yet another spectacular back down under pressure from the Labor Party, state premiers and treasurers, and Liberal Party senators.

When Labor said Western Australia needed a Fair Share for WA Fund, Scott Morrison attacked top-ups, then agreed to them.

When Labor said it would make the GST floor the law, the Liberal Party ignored it, then agreed to it.

When Labor said the commitment to ensure no state was worse off should be enshrined in law, the Liberal Party scoffed at it, and today have agreed to do it until 2026.

Federal Labor welcomes this major back down from the new Treasurer.

Only two weeks ago, Mr Frydenberg was asked directly why he wouldnt put this guarantee into the legislation he said he didnt want to.

JOURNALIST: The states were outside a moment ago saying that they want this promise you have made that no state is worse off to be put in legislation. Why aren't you doing that?

FRYDENBERG: Well, what the states want is for us to run a parallel scheme; the old system and the new system. And we don't want to run a separate set of books.

DOORSTOP, 3 OCTOBER 2018

Today the Treasurer has announced that the Commonwealth will indeed run a separate set of books.

We welcome the back down and look forward to the legislation being introduced into the House.