Tasmania’s Shadow Treasurer believes the federal and state Liberal Governments are split on changing the GST.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Recommendations in a Productivity Commission draft report this month would see Tasmania lose $1 billion over four years in GST revenue.
On Thursday, Liberal Senator for Tasmania, Eric Abetz, said many people were getting “over-excited” about the draft report.
“I am more interested in what the final report says and then working with the state government to deliver the best possible outcome for Tasmania,” he wrote.
He said Labor was “quick to try to cynically paint any change as bad”.
“We are once again a state where we make our own luck instead of having to send the begging bowl to the mainland at every opportunity,” he said.
“I believe there is some value in cautiously looking at what this review has to offer to see if there are any areas for improvement in the system, as it applies to Tasmania.
“In short, it is appropriate to review the system to see if there is scope for improvement, noting any change must be agreed by all state and territory governments.”
Tasmania’s Treasurer, Peter Gutwein, has said the state government “will not support any change to the way GST is distributed, full stop”.
Labor’s Shadow Treasurer, Scott Bacon, said Senator Abetz’s comments were at odds with the state government’s view.
“It’s clear Peter Gutwein and Eric Abetz are not on the same page,” he said.
“Senator Abetz is laying the groundwork to back in changes that will inevitably cut Tasmania’s share of GST revenue.”
Mr Bacon said the state could not rely on “one-off payments” to fund essential services”.
“Senator Abetz says he wants to ensure Tasmania is not worse off, but all of the changes canvassed in the Productivity Commission’s report hurt Tasmania,” he said.
Mr Gutwein refuted Labor’s assessment.
“Mr Bacon is either incompetent or lazy, or in this case, both,” he said.
“On any reading, Senator Abetz’s comments are clearly in line with the Tasmanian Government’s and our position is clear that we will not accept any change that would be to the detriment of Tasmania.”
Senator Abetz, who described the draft report as a “mixed bag”, said it contained noteworthy observations including that the GST operation was working well.
“I am pleased the draft report did not see value in a GST relativity floor,” he said.
“The report points out a floor may increase uncertainty and work against the problem it is intended to solve.”
