►OPINION: GST carve-up a 'fair, independent' process PREMIER Will Hodgman has promised to fight ‘‘tooth and nail’’ against any changes to the GST distribution formula, after the state was given a $132 million windfall from the latest carve-up. The Commonwealth Grants Commission recommended Tasmania be given $2.236 billion in the 2015-16 financial year, an increase of $322 million compared with 2014-15. The figure is $141 million more than forecast in last year’s budget, and $132million more than the state government expected as recently as two months ago. Western Australia was the big loser in the latest distribution, and will now receive less than 30¢ back for every dollar it contributes in GST. WA Treasurer Mike Nahan has threatened ‘‘basic non-co-operation’’ with the rest of the Commonwealth if the formula for the GST carve-up was not changed to benefit his state. But Mr Hodgman has hit back, telling The Examiner that any change would be an attack on federation. ‘‘We as a government, and I as Premier will fight every step of the way and tooth and nail for Tasmania’s fair share of the GST,’’ he said. ‘‘We fundamentally believe in the current arrangement. It’s equitable, it provides a methodology that ensures that the services our citizens receive are commensurate with other states. ‘‘To alter that now because of WA threatening all sorts of things would be utterly misguided.’’ Federal Treasurer Joe Hockey said WA had been hit by a perfect storm of lower GST revenue and falling iron ore prices. ‘‘Frankly, the fundamental question is, does it really help the federation for the first time to have a state receiving 30¢ in the dollar from the GST that is contributed by its citizens,’’ he said. ‘‘At what point do you say this is just a little bit unfair?’’ Tasmanian Treasurer Peter Gutwein said any help offered to WA should be separate to the GST argument. Labor treasury spokesman Scott Bacon said the state government should not pass off the windfall as its own work. ‘‘An increase of this size would make a significant difference when it comes to repairing some of the damage done by Mr Gutwein’s harsh cuts in schools and hospitals,’’ he said. ‘‘The Treasurer must be upfront and honest over what this means for the budget.’’
PREMIER Will Hodgman has promised to fight ‘‘tooth and nail’’ against any changes to the GST distribution formula, after the state was given a $132 million windfall from the latest carve-up.
The Commonwealth Grants Commission recommended Tasmania be given $2.236 billion in the 2015-16 financial year, an increase of $322 million compared with 2014-15.
The figure is $141 million more than forecast in last year’s budget, and $132million more than the state government expected as recently as two months ago.
Western Australia was the big loser in the latest distribution, and will now receive less than 30¢ back for every dollar it contributes in GST.
WA Treasurer Mike Nahan has threatened ‘‘basic non-co-operation’’ with the rest of the Commonwealth if the formula for the GST carve-up was not changed to benefit his state.
But Mr Hodgman has hit back, telling The Examiner that any change would be an attack on federation.
‘‘We as a government, and I as Premier will fight every step of the way and tooth and nail for Tasmania’s fair share of the GST,’’ he said.
‘‘We fundamentally believe in the current arrangement. It’s equitable, it provides a methodology that ensures that the services our citizens receive are commensurate with other states.
‘‘To alter that now because of WA threatening all sorts of things would be utterly misguided.’’
Federal Treasurer Joe Hockey said WA had been hit by a perfect storm of lower GST revenue and falling iron ore prices.
‘‘Frankly, the fundamental question is, does it really help the federation for the first time to have a state receiving 30¢ in the dollar from the GST that is contributed by its citizens,’’ he said.
‘‘At what point do you say this is just a little bit unfair?’’
Tasmanian Treasurer Peter Gutwein said any help offered to WA should be separate to the GST argument.
Labor treasury spokesman Scott Bacon said the state government should not pass off the windfall as its own work.
‘‘An increase of this size would make a significant difference when it comes to repairing some of the damage done by Mr Gutwein’s harsh cuts in schools and hospitals,’’ he said.
‘‘The Treasurer must be upfront and honest over what this means for the budget.’’
