TREASURY modelling has predicted the federal government’s income tax plans would cost Tasmanians $4500 extra each year.
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Prime Minister Malcolm Turnbull will on Friday present state leaders with a proposal that would see states collect a portion of income tax directly, which he said could be funnelled towards health and education.
Treasurer Peter Gutwein said on Thursday the proposal “just didn’t stack up”.
“To achieve a per capita share out of the national pool we would need every Tasmanian taxpayer to pay $4500 more in personal income tax and it’s just not on,” Mr Gutwein said.
“We have less taxpayers who are paid less in respect of incomes and therefore pay less tax – the larger states would be at a significant advantage under this proposed model and we’re not prepared to support it.
“The proposal from the prime minister doesn’t work,” he said.
Mr Gutwein and Premier Will Hodgman leave Tasmania on Thursday to attend the Council of Australian Governments meeting.
