Prime Minister Malcolm Turnbull has again promised that Tasmania will not be worse off under any changes to GST distribution.
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In Hobart for an announcement on the Bridgewater Bridge, Mr Turnbull reiterated that Tasmania would not receive less GST money.
“Tasmania will not be worse off in terms of dollars and cents,” Mr Turnbull said.
“Will Tasmania’s share be the same?
“Well Tasmania’s share changes from year to year under the formula but there’s been a Productivity Commission report and we’ll be releasing that later this month, together with a way forward.
“Tasmania will be very happy with the proposal.
“You will have to wait and see but Tasmania will not be worse off or getting any less money under the proposal – you will not be going backwards in terms of support.”
Mr Turnbull said Treasurer Scott Morrison had discussions with his Tasmanian counterpart on Wednesday night.
The sparring over the GST distribution again dominated question time in the House of Assembly on Thursday morning.
Labor leader Rebecca White asked Premier Will Hodgman if he was satisfied with the Prime Minister’s assurance on the GST.
Mr Hodgman said he had discussed the GST with Mr Turnbull and would continue to fight ensure Tasmania was not disadvantaged.
Ms White and Labor’s Treasury spokesman Scott Bacon also quizzed Treasurer Peter Gutwein on whether he supported the GST distribution method remaining the same.
“We have a guarantee from the Prime Minister, Western Australia has a guarantee from (Labor leader) Bill Shorten,” Mr Gutwein said.
Ms White said there was no need for Labor to get any assurances from Mr Shorten because GST to Tasmania was not at risk under Labor.
Mr Bacon asked Mr Gutwein if he had sought advice from Treasury on comments by economist Saul Eslake reported by Fairfax Media that Tasmania could lose $367 million in 2021-22.
“The point needs to be made that Saul Eslake is free to comment as he sees fit,” Mr Gutwein said.
“The Prime Minister has made it clear we will not lose a cent and he has re-iterated that.”