The Tasmanian Government has taken its case for a fair GST deal directly to the Productivity Commission, warning that Tasmania stands to lose hundreds of millions of dollars each year unless full horizontal fiscal equalisation is restored.
Treasurer Eric Abetz said Tasmania had made a strong case for the restoration of full horizontal fiscal equalisation at today's hearings into the Commissions interim report.
"Securing a fair GST distribution system for Tasmania is vital for the future of our State," the Treasurer said.
"It is critical for Tasmania's capacity to fund our hospitals, schools, police, roads and the essential services Tasmanians rely on every day.
"The Productivity Commission's interim report acknowledges that the 2018 GST reforms have not met the original intent.
"Yet the Prime Minister has declared he will abandon fairness in favour of a disproportionate deal for Western Australia.
"The Federal Labor Government must listen to the united voice of the Tasmanian Parliament and restore a fair GST deal for our State."
While the Productivity Commission has proposed several reform options, Tasmania's position remains clear: unless the pre-2018 GST distribution system is restored, and the independence and integrity of the Commonwealth Grants Commission retained, Tasmania's GST revenue could be reduced by up to 15 per cent each year, equivalent to a loss of up to $530 million in 2024-25 alone.
