Cormann fuels row over GST carve-up
CLAIMS by Finance Minister Mathias Cormann that GST sharing arrangements are unfair on Western Australia have angered the State Opposition.
Labor Treasury spokesman Scott Bacon says it does not bode well for Tasmania and should cause Tasmanians to fear for the state’s share.
The Western Australian senator made his comment yesterday after Tasmanian Premier Will Hodgman told the Federal Liberal Council on Saturday that the Tasmanian Government would fight “any Government from anywhere” that threatened the state’s fair share of the GST.
Mr Bacon said the Hodgman Government did not know and Peter Gutwein was being extremely dishonest in taking the Prime Minister’s word that the state’s GST share was safe.
“The Premier’s response to the GST risk has been shambolic and inconsistent,’’ he said.
“One day the GST share is safe and another day it is at risk again.”
Senator Cormann said: “We recognise that the GST sharing arrangements are unfair on Western Australia that is why we have made several Federal top-up payments for Western Australia. Initially stopping the drop of Western Australia’s share of the GST which was headed to below 30 cents in the dollar and now having lifted it to 50 cents in the dollar.”
“We have also of course initiated the Productivity Commission review which looked at the national productivity and growth implications of the GST sharing arrangements.’
“That review will soon be released by the Treasurer and of course it is at that point that a comprehensive response in relation to medium to long term options should be pursued.
“I made it very clear in my view that it wasn’t appropriate to pursue ad hoc measures in isolation of a broader plan so my position was very clear.”
The State Budget has budgeted for fall from 3.7 per cent share of the national GST pie in 2018-19 to 3.57 per cent in 2021-22.
The Productivity Commission review of the GST carveup is expected soon.
“Mr Hodgman and Mr Gutwein were full of bluster on budget day but they have now changed their tune and the Premier needs to answer a straightforward question: Does he believe Tasmania’s share of GST is secure or not?” Mr Bacon said.