TASMANIA should "fend for itself" and be "weened off" Commonwealth subsidies, starting with lowering or abolishing the minimum wage, according to a New South Wales Senator-elect.
Liberal Democratic Party Senator-elect David Leyonhjelm said he would take the issue to Employment Minister and Tasmanian Senator Eric Abetz when he enters the Senate in July.
"Tasmania needs to wake up and stand on its own feet, or show signs that it is willing to stand on its own feet," Mr Leyonhjelm said.
Mr Leyonhjelm used the decision to continue the moratorium on genetically modified crops as an example of Tasmania "cutting itself off from modern technology" and making "poor economic choices".
"If you're not going to help yourself, we're not going to help you either," he said.
Mr Leyonhjelm said that lowering or abolishing the minimum wage in the state would help boost the state's economy by increasing workforce participation.
"There are plenty of people in Tasmania who are not worth paying the minimum wage but are worth more than welfare."
The Senator-elect also said that Tasmania's GST portion should be based on population, which would mean a huge reduction in funding, up to $650 million a year.
Greens Senator Peter Whish- Wilson said Tasmanian politicians should be watchful of any deals that emerged in the Senate after July.
"It worries me that we have someone in the Senate who wants to take an axe to federal support for this state," Senator Whish- Wilson said.