Report on GST share after election

FEDERAL Treasurer Scott Morrison’s move to delay the release of a report on the GST carve-up was a cynical political ploy to ensure it came out after the state election, Franklin MP Julie Collins says.

The Productivity Commission is holding an inquiry into the distribution of $60 billion of GST money between the states and had been due to report this month.

“The [commission] will now be required to provide its final report to the Government by 15 May, 2018,” Mr Morrison said.

He said the commission had requested an extension.

“The PC inquiry has already demonstrated in its interim report that the system is broken and needs a real fix,” he said.

“The Coalition Government remains committed to the ‘fair go’ principle of [horizontal fiscal equalisation] and putting in place a real solution that does the right thing by our national economy.

“Our goal is straightforward, to deliver a fairer, more durable and more efficient system for implementing HFE into the future in the national interest.”

A draft report in October last year flagged changes that could cost Tasmania hundreds of million of dollars a year.

Tasmania receives about 40 per cent ($2.3 billion) of its annual revenue from the GST.

Ms Collins said Mr Morrison was seeking to avoid the political cost of cutting smaller states’ GST before the Tasmanian and South Australian elections in March.

Tasmanian Labor leader Rebecca White said the delay was designed to help Premier Will Hodgman.

“The Prime Minister has delayed the bad news until after the election as a favour to his Liberal mates in Tasmania,” she said.

But State Treasurer Peter Gutwein said Ms White’s claims were wrong.

“The Productivity Commission itself requested more time for the review ... it suggests it is seriously considering feedback to its interim report,” he said.