Both the federal Liberal and Labor parties have ruled out making changes to GST arrangements that would see Tasmania lose $755 million in revenue between 2027 and 2031.
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The end of the no-worse-off guarantee in 2027-28 was part of legislation passed in 2018 - with the support of both major parties - to transition to a new model which would ultimately vastly benefit Western Australia to the detriment of other states.
Tasmania's Treasury department released modelling this week showing the state would continue to lose $100 million per year beyond 2031.
Both federal Finance Minister Simon Birmingham and Labor leader Anthony Albanese confirmed in the media on Wednesday that they would not alter the deal.
Premier Peter Gutwein said he spoke with federal Treasurer Josh Frydenberg on Tuesday night to urge the continuation of the no-worse-off guarantee beyond 2027.
Mr Gutwein publicly described the deal in 2018 as leaving Tasmania "better off" and as giving the state its "fair share" in his then-role as Treasurer. He also proposed a different model to the Productivity Commission at the time.
He said he would fight to retain the guarantee.
"To go forward without the guarantee would have been madness," Mr Gutwein said.
"We have the guarantee in place, and now what's important is that we work to extend the guarantee."
The only lower house MP to vote against the deal was Clark independent Andrew Wilkie.
He said the 2018 legislation was designed to win votes ahead of a Western Australian byelection, and it will come back to bite states like Tasmania.
"We're an older, poorer, sicker population generally. So the way the fiscal equalisation works is to ensure that we were getting more than other states to try to lift us up to the standard of other states, to improve our health outcomes," Mr Wilkie said.
"These changes to GST will hurt a number of states, but they will hurt Tasmania the most because we rely on GST the most to turn around our poor health and other outcomes.
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"The next federal election certainly will be an opportunity to elevate this issue, and to some degree make it an election issue."
When asked if she would lobby Labor leader Anthony Albanese to reconsider the party's position on the no-worse-off guarantee, Franklin Labor MHR Julie Collins said it was up to the Liberal party to make the changes.
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