Launceston Chamber of Commerce executive officer Neil Grose has urged the Productivity Commission not to alter Tasmania’s share of the GST.
Mr Grose appeared before the commission in Hobart on Friday, and said ‘prudent management’ had seen the state’s economy improve.
“For Tasmania to lose between 1.2% and 2.6% of GST distribution would plunge the state back decades,” he said.
Mr Grose said the federal review into the horizontal fiscal equalisation system should keep Tasmania’s share of the GST untouched.
He said Western Australia, which has been lobbying for a greater share of the GST in recent months, had the revenue stream of the mining sector as a reason for its low GST share, and Tasmania should not suffer because WA had been ‘unwise’ in its financial management.