Tasmania must stand united to secure a fair GST deal

The Productivity Commission's interim report shows how important the restoration of full horizontal fiscal equalisation is for Tasmania.
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The report shows that GST is a material share of the Commonwealth payments that account for 63 per cent of the State’s total revenue base.
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Treasurer Eric Abetz said while the Productivity Commission has proposed its own preferred pathway for reform, Tasmania's position remains that the GST system should return to the pre-2018 arrangements which fully equalised states' fiscal capacity.
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"We will fully analyse the interim report and make a further submission to back in fairness and equity for Tasmania’s sustainability," the Treasurer said.
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"The Productivity Commission acknowledges that the 2018 GST reforms have not met their original intent.
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"Securing a fair GST distribution system for Tasmania is vital for the future of our State.
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"It is critical for Tasmania’s capacity to fund our hospitals, schools, police, roads and the essential services Tasmanians rely on every day."
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While the Productivity Commission has proposed several reform options, Tasmania's position remains clear: unless the pre-2018 GST distribution system is restored, Tasmania's GST revenue could be reduced by up to 15% each year, equivalent to a loss of up to $530 million in 2024-25 alone.
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"Tasmanians must once again speak with one voice as we did in our initial submission which has seen a substantial adoption of Tasmania’s input," the Treasurer said.
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"A full urgent analysis will be undertaken to ensure Tasmania’s interests are protected and forcefully advocated."