TUESDAY’S budget contained little for Tasmania, economist and commentator Saul Eslake says.
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The former ANZ chief economist said it stood out how poorly Tasmania had done out of specific purpose payments compared to other Australian states.
Tasmania’s specific purpose funding, given for initiatives such as health, education, disability care and roads, will decrease by .9 per cent over the next four years, compared to a six per cent rise in payments to all state governments.
Western Australia’s specific purpose payments will rise by 12 per cent over the forward estimates.
Mr Eslake said the drop in Tasmania’s specific purpose payments over the forward estimates was partly due to a number of funding initiatives such as $9 million to support clinical system redesign at the Royal Hobart Hospital and the Launceston General Hospital expiring.
But Mr Eslake pointed to areas where Tasmania’s funding had stagnated while other states had had theirs increase.
“Tasmania is not getting any increase in funding for Affordable Housing programs whereas every state is getting an increase… total grants are going up by $80 million but Tasmania’s isn't going up at all,” he said.
Mr Eslake said he was uncertain whether wishlist items, such as a state-wide sewerage upgrade and the University of Tasmania’s Northern Cities expansion, would be funded prior to the election.
“There’s a section in the budget called decisions taken but not yet announced with some big numbers for 2016-17, 2017-18 and 2018-19 but a big negative for 2019-20…. I don’t know whether that includes the election goodies that will be announced between now and the election,” he said.
“It could be there is something in there, but there is very little that stands out as for Tasmania out of all of that.”
Mr Eslake said a number of broader budget measures, such as changes to superannuation and income tax brackets, would have an impact on some Tasmanians.
He said Tasmania’s above average proportion of small businesses meant changes to company tax rates would be of some benefit to Tasmanian businesses, but was sceptical it would lead to an increase in employment more broadly, with small businesses accounting for only 18 per cent of the increase in employment in the last five years.