Threat over GST remains: Collins

FINANCE Minister Matthias Cormann’s failure to rule out changes to the GST carve-up formula shows Tasmania’s fair share is under threat, Franklin MP Julie Collins says.

Senator Cormann has told the Senate that the GST carveup will be considered once the Productivity Commission report is delivered in May.

The Australian Government has asked the Productivity Commission to undertake an inquiry into Australia’s system of horizontal fiscal equalisation, which underpins the distribution of GST revenue to the states and territories. The final report is due in May.

“In due course the Productivity Commission will release its report and every Australian will expect the Government to look at that re- port,” Senator Cornmann said.

Ms Collins said Senator Cormann’s failure to rule out cuts to Tasmania’s share of the GST confirmed that the Liberals were coming after the state’s fair share.

“The Turnbull Government has had multiple opportunities to rule out changes but they have failed every single time,” she said.

A Productivity Commission draft report last year showed that alternative equalisation options could cost Tasmania between $170 million and $693 million over the forward estimates to 2020-21.

“Any raid on the GST revenue to Tasmania would hit families and the schools, hospitals and other vital services they rely on,” Ms Collins said.

Earlier this week, WA Premier Mark McGowan expressed fury after finding out that state would be stripped of $348 million in GST.