News, media releases

GST storm clouds on horizon as Tassie share cut

  • GST cut will place further pressure on budget strained by big-spending Libs
  • Hodgman is too weak to stand up for Canberra
  • Turnbull must finally release Productivity Commission report

A downgrade of Tasmania’s share of GST revenue is an alarming sign of what is to come with Liberal Governments in Tasmania and Canberra.

Shadow Treasurer Scott Bacon said the downgrade would place pressure on the state budget, already under stress after more than $2.7 billion in Liberal election promises.

Prime Minister Malcolm Turnbull delayed the release of the crucial report on GST from the Productivity Commission until after the state election – a tell-tale and alarming sign that there will be no good news for Tasmania.

“Yet again we have evidence that Will Hodgman is weak and does not stand up to Canberra,” Mr Bacon said.

“Time and time again the Premier has shown he will not stand up for Tasmania’s fair share from Canberra.

“Today’s news is a blow to the state’s finances in the wake of $2.7 billion in irresponsible promises from a Liberal party desperate to win the March election.

“The Liberals’ mismanagement of the state’s purse strings will be put under further pressure and Treasurer Peter Gutwein needs to explain how this latest hit will affect the state.

“It is an alarming sign that Tasmania’s GST share is slipping with the Productivity Commission report into GST still to come.”

Mr Bacon called on Malcolm Turnbull to finally reveal the long-awaited Productivity Commission report.

“Any move away from the current distribution system will cost Tasmania’s budget tens of millions of dollars,” Mr Bacon said.