Federal Labor members only group not to sign letter to Canberra

The letter was sent on Thursday to Federal Treasurer Jim Chalmers and was signed by every federal Liberal, Green, Jacquie Lambie Network and independent member in the state.

Only the five federal Tasmanian Labor politicians have refused to sign.

The letter read: "Many essential services that Tasmanians rely upon are funded through Tasmania's GST allocations.

"Any reduction in those funds will have an adverse impact on our state and all Tasmanians."

The Albanese government in May committed $240 million to the redevelopment of the Macquarie Point Precinct.

State Treasurer Michael Ferguson later that month wrote requesting that these federal funds not be included in the calculation of GST relativities for the 2024 update.

GST is divvied up by the Commonwealth Grants Commission (CGC) and allocated among the states based on economic relativities.

If not exempted from the calculation, the $240 million federal stadium funding would result in Tasmania being allocated a smaller proportion of the nationwide GST pool, potentially cutting millions from the state budget in future years.

The letter requested that Mr Chalmers direct the chair of the CGC to exclude the funding from GST calculations.

The matter is of concern to the state government - Treasurer Michael Ferguson this week wrote again to Mr Chalmers requesting the exemption.

"To date, no assurance has been provided that Tasmania will not be worse off in GST allocations as a result of the [$240 million funding commitment]," Mr Ferguson wrote in a joint letter with Senator Jonathon Duniam on September 11.

Lyons MP Brian Mitchell did not confirm his views on GST exemption for the funding, but said the Commonwealth Treasury would provide advice about the exemption in the "usual way".

He labelled the letter to Mr Chalmers a "stunt" by Senator Duniam.

"If Senator Duniam really cared about Tasmania's fair share, why did he, and his Tasmanian Senate colleagues and Gavin Pearce, vote against 1200 new social and affordable homes this week?" Mr Mitchell said.

"If Senator Duniam really cared about Tasmania's fair share, why did he, and his Tasmanian Senate colleagues and Gavin Pearce, vote against energy price relief for Tasmanians?"

Senators Helen Polley, Carol Brown, and Anne Urquhart have also been contacted for comment about why they have not signed the letter.

Senator Duniam slammed the Labor parliamentarians, saying their inaction on the issue could result in less funding for Tasmanian services.

"As it stands, $240 million in federal funding is going to be ripped out of our roads, schools and hospitals, all because Federal Labor MPs like Julie Collins and Brian Mitchell haven't stood up to Jim Chalmers and exempted our share of GST funding," he said.

Jacqui Lambie Network Senator Tammy Tyrrell criticised federal Labor for both supporting the stadium project and cutting Tasmania's GST income to pay for it.

"Unless our GST is protected, we will face longer wait times for healthcare, bigger class sizes, worse roads, fewer police and higher energy prices," Senator Tyrrell said.

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