The Federal Government’s decision taken today at COAG to adopt the GST relativity recommendations made by the Commonwealth Grants Commission is a good result for Tasmania, and was the right outcome.
The distribution of the GST reflects the very fabric of our Federation. It is about ensuring every Australian, whether they are living on a southern island or in the far west, has the same opportunity to access the same quality services.
It is about being fair.
It should be above an annual political brawl, which is the very reason the Commonwealth Grants Commission exists, to provide the fairest possible model to allocate GST funds - state funds - away from politics.
While we have won this battle, we have to keep fighting to ensure that the GST continues to be allocated fairly under the current formula.
This week’s events, combined with the fact that our share of GST will inevitably decline in future years as our economy improves, reinforces the need for strict budget discipline.
We cannot assume that our share of GST will remain at this level indefinitely and it’s important that we don’t overcommit to recurrent expenditure that won’t be affordable in future years.