Treasurer Eric Abetz welcomed the united approach from across the chamber.
"GST revenue accounts for more than 40 per cent of Tasmania's General Government Sector revenue and underpins the delivery of essential services," the Treasurer said.
"Australia's GST distribution system was built on the powerful principle of horizontal fiscal equalisation so that every Australian can access a comparable standard of services, regardless of geography.
"Changes made in 2018 undermined that principle, abandoning horizontal fiscal equalisation and creating a two-tier federation."
Treasurer Abetz warned that with the Commonwealth's no‑worse‑off guarantee scheduled to end in 2029-30, the full effects of this decision will be laid bare.
"When that happens, every state except Western Australia will face a sharp deterioration in its fiscal position," the Treasurer said.
"Foregone funding on this scale is equivalent to thousands of hospital admissions each year. It means fewer services for Tasmanians and delayed infrastructure.
"Our Government strongly supports a return to full horizontal fiscal equalisation and a GST system grounded in the egalitarian principles on which Australia's federation was built.
"Restoring full HFE will give certainty to our community that the delivery of essential services to Tasmanians, from hospitals and schools to police and infrastructure, will be there when they need it.
"Anything that leaves Tasmanians worse off is unacceptable."
