Productivity Commission to visit Tasmania for GST review

The Productivity Commission has decided to visit Tasmania in December to conduct a hearing related to its review on GST distribution methods.

The state was recently missed off the hearings schedule, leading to lobbying from the state government and Labor Party.

Two public hearings were scheduled in Perth, and one each in Melbourne, Sydney and Darwin.

The commission’s draft report, released in November, showed Tasmania could lose $1 billion in revenue over four years under one scenario.

Treasurer Peter Gutwein said the state government at the hearing would make it clear to the panel that the state’s budget could not be put at risk. He took a shot at Western Australia, which had been pressuring for changes for years.

"WA has a debt and deficit problem – a problem that they have created themselves," he said.

"And it's simply not right that Tasmania's financial position should be utilised to underpin theirs."

GST payments make up 40 per cent of the state’s budget.