The release of the MYEFO by the Australian Government is confirmation that the Hodgman majority Liberal Government’s strategy outlined in the 2019-20 State Budget, to maintain the momentum by investing for growth, was the right approach.
With a slow-down in the national economy well anticipated, Tasmania is well placed to mitigate impacts, as we continue to buck the trend through disciplined, strategic budget management. The focus on growing our local economy has placed Tasmania ahead of the pack, with the fastest growing economy and most confident business conditions nationally, for the first time in history.
The Tasmanian Government 2019-20 State Budget outlined the importance of a resilient local economy, to mitigate impacts from a slowing national economy. That is why we are delivering a record $3.6 billion infrastructure program across the State, which is driving business confidence, attracting private investment and continuing to create jobs.
The MYEFO forecasts a national GST pool write down of nearly $10 billion across four years, as a result of lower levels of consumer confidence in the mainland states. Preliminary modelling indicates a write down of around $75 million of Tasmania’s GST share this year, and $280 million across the Budget and Forward Estimates period.
While the GST write-down is beyond state control, our strong budget position and disciplined budget management, with a focus on growing our own source revenues, means we are well placed to manage the impact.
Unlike Labor, which has no alternative plan to protect Tasmania’s economy and jobs, we will continue delivering for Tasmania, building on the almost 16,000 jobs already created since coming to Government, with a further 10,000 jobs to result from our strong infrastructure program.
Further detail will be provided in the Revised Estimates Report (RER), set for release early in the new year.