Labor has jumped on comments made by the Prime Minister in Western Australia that the GST system distribution system is ‘unfair’.
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At the Western Australia Liberal Party State Council on Saturday, Mr Turnbull described the carve-up, which sees the west receive 30 cents for every dollar, as unfair.
It is feared any change to the distribution would see Tasmania’s GST income reduced.
Tasmanian Opposition Leader Rebecca White said the Prime Minister’s comments should have this state concerned.
“For the Prime Minister to be in Tasmania just two weeks ago and make no commitment at all to Tasmania’s share of the GST, and to now say in Western Australia, they will get more means the health crisis in Tasmania will just get worse under a Malcolm Turnbull prime ministership,” she said.
The Productivity Commission is assessing the dispersion of GST after Western Australia’s federal representatives claimed their state was being disadvantaged by the system.
In Launceston last week, Labor’s Assistant Treasurer Andrew Leigh was questioned about whether the party’s proposed $1.6 billion package for Western Australia was money that Tasmania would miss out on.
“Labor’s made some tough decisions in tax loopholes in order to make sure that we’re able to make decisions such as the WA infrastructure fund,” he said.
“It doesn’t affect the GST distribution, what it does is it brings Western Australia up to the equivalent of a 70 cent floor.
Dr Leigh said Tasmania would not lose out under a Shorten-Labor Government.
“We don’t have any plan to change the GST formula, Malcolm Turnbull’s the one who has been talking about that,” he said.