GST divide ‘crisis talks’

STATE Labor has described a meeting between Tasmanian Premier Will Hodgman and his South Australian counterpart as “crisis talks” over GST distribution.

Mr Hodgman met South Australian Liberal Premier Steven Marshall in Adelaide, prompting the Opposition to suggest the nation’s two poorest states are concerned about their share of federal revenue.

“Premier Hodgman now appears to be finally taking Labor’s warnings seriously, travelling to South Australia to try and salvage something out of this deal in partnership with Premier Steven Marshall,” Shadow Treasurer Scott Bacon said.

Tasmania is slated to re- ceive $112 million in top-ups under the Turnbull Government’s GST carve-up reforms.

The State Government has said it will model the new formula before backing it, but has said it appears a good deal for Tasmania.

Labor said the deal would leave the state with its lowest share of federal revenue distri- bution since World War II.

“Premier Hodgman walked away from almost two decades of the Tasmanian Labor and Liberal parties jointly opposing any change to the way the GST is distributed,” Mr Bacon said.

Treasurer Peter Gutwein dismissed the suggestion that the two states were formulating a strategy to take on the changes.

“Is Scott Bacon’s head so far in the sand that he thinks the Premier discussing the GST deal with our interstate colleagues is a bad thing?” Mr Gutwein said.

“While Labor choose to whinge and create conspiracy theories, we are getting on with the job of examining the deal that, on face value, will see Tasmania receive more than $100 million in extra GST.”