WA Liberals spark fresh GST debate

MOVES by Western Australia to increase its share of the GST has sparked a war of words in Tasmania, where any change to distribution is likely to be felt the hardest.

Prime Minister Malcolm Turnbull told the WA Liberal Party state conference at the weekend the GST distribution system was unfair and would change.

Tasmania’s Opposition Leader Rebecca White said any adjustments to the way money was shared between the states would mean Tasmania would lose out.

“It’s very concerning to hear the Prime Minister has gone to Western Australia and made statements about the GST that would have a negative impact on Tasmania’s share of the GST,” she said.

“For the Prime Minister to be in Tasmania two weeks ago and to make no commitment on Tasmania’s share of the GST, and to now go to Western Australia and say that they will get more, means that the health crisis in Tasmania will get worse under a Malcolm Turnbull prime ministership.”

Ms White said Premier Will Hodgman had failed to stand up for Tasmania.

But Treasurer Peter Gutwein rejected Ms White’s claims, and said the State Government had been consistent in its stance on maintaining Tasmania’s share of the GST.

“We have successfully fought off previous attempts to change the GST that would have disadvantaged Tasmania, and we will do so again,” he said.

“Ms White has no credibility on the GST. She has supported Bill Shorten’s pledge to give Western Australia $1.6 billion at the expense of Tasmania while providing no assurances that she will fight any proposed changes to the GST from a future Shorten government.”

The WA Liberals conference voted in favour of a motion to financially secede the state from the federation, despite one member warning there was a risk of being labelled the “lunatic fringe”.

The motion was amended to becoming “financially independent”, as suggested by state president Norman Moore.