The future of Tasmania’s GST revenue remains uncertain despite federal Opposition Leader Bill Shorten promising $1.6 billion to offset West Australia’s deal.
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In a speech to the West Australian State Labor Conference at the weekend, Mr Shorten announced the funding would be provided for infrastructure projects and help offset the state’s low GST revenue.
A review of how the GST is carved-up among states is the focus of a Productivity Commission report.
The state government has raised concerns about how a boost to West Australia could disadvantage Tasmania.
Labor’s Bass MHR Ross Hart said the $1.6 billion funding to West Australia was a “sensible solution which doesn't involve reworking the GST formula”.
"It solves it in a way which doesn't penalise other states,” he said.
When pressed on if a Shorten Government would make any changes to the GST that would negatively affect Tasmania Mr Hart said; “like any government – you can't rule something in or out”.
“We don't accept there needs to be any change to the GST distribution that would penalise Tasmania,” he added.
Tasmanian Liberal Senator Jonathon Duniam said it was a “true to form” policy from Labor which “prefers to make special deals to hand out taxpayer money to solve political problems”.
"This announcement from Labor is simply the latest in a string of unfunded promises and special deals, made to placate the complaints of one state, which is especially galling after that state misspent previous GST receipts over the past decade,” he said.
“Bill Shorten has failed to rule out any changes to GST distribution and has left open the possibility of a future Shorten Government tinkering with horizontal fiscal equalisation, which may well disadvantage our state.”
The state government has previously warned of any GST changes that will disadvantage Tasmania.
Treasurer Peter Gutwein said; “Commonwealth funding is not a magic pudding”.
“It is also concerning that despite the multi-billion handout to WA, Labor has still not ruled out changing the GST system,” he added.
Tasmanian Labor Senator Helen Polley said details about funding the package will be announced.
“I know the process – the vigorous examination of our policies and the fact they’ve all got to be fully costed,” she said.
“I have no doubt at all this money has been earmarked.”