Tasmania's Department of Treasury has argued that the Commonwealth used "flawed" modelling that simply portrayed a "best case" when it passed changes to GST distribution that will see Western Australia hugely benefit at the expense of all others.
Treasury released further modelling this month to show that under all scenarios, WA will see a huge increase in its GST revenue when the 'no worse off' guarantee ends in 2027.
Under the scenarios, Tasmania will lose between $47 and $147 per person, while WA will gain between $1056 and $1945 per person.
Tasmanian Labor has attacked Premier Peter Gutwein for signing off on the deal in 2018, which provided a fairer outcome for the states and territories until 2027 when it will drastically change.
South Australia has commissioned an independent review into the GST arrangements with the support of Tasmania and other states.
Mr Gutwein said the 'no worse off' guarantee should continue beyond 2027.
"Our position is clear - the guarantee provided by the Australian Government should be a permanent arrangement, or we should revert back to the previous model," he said.
Treasury's modelling showed that, from 2027, 1.1 out of 5 teachers in Tasmania would go unfunded, or 4 out of 5 police officers.
Labor's treasury spokesperson Shane Broad said Mr Gutwein had to take a stronger stand against the Prime Minister on the issue.
"Mr Gutwein can try and spin his way out of this all he likes but the only way he can fix this problem is if he stands up to the Prime Minister, admits his mistake and demands our fair share," he said.
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