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Threat to Tasmania’s share of the GST intensifies

  • Draft report on GST distribution foreshadows big cuts to Tasmania                  
  • Our health system can’t afford any more pain
  • Will Hodgman has failed to guarantee protection of Tasmania’s share

 The draft Productivity Commission report into Horizontal Fiscal Equalisation quantifies how much a change to GST distribution would hurt Tasmania.

Labor Leader Rebecca White said the report confirms that Tasmania’s ability to fund essential services, like hospitals, is under threat.

“Changing the way GST is distributed will inevitably hurt Tasmania,” Ms White said.

“All of the scenarios modelled in the draft report show Tasmania losing crucial funding.

“A mining royalty discount for Western Australia would cost Tasmania $42 million in just one year. That would be a huge blow to the state’s health system.

“The introduction of a “relativity floor” would wipe $57 million from one year of Tasmania’s budget. A cut like that would severely hurt our ability to fund essential services.

“Whichever way you look at it, Tasmania will be the loser from a change to help Western Australia.

“Our health system could not afford a cut to GST revenue. Our hospitals are already in crisis, we simply cannot afford another cut from the Federal Government.

“The Premier arrogantly refused Labor’s offer of a bipartisan approach to this issue but the proposal is still on the table.

“Will Hodgman has repeatedly tried to declare victory on this issue but it’s increasingly clear that his lobbying has been ineffective.

“Tasmania needs a united front to see off this very real threat.”