We welcome the Prime Minister’s initiative to commence a national debate on the nature of the Federation.
The Government will engage positively and constructively in this debate, but we enter with some very clear principles.
We will not support change unless it leaves Tasmania and Tasmanians better off compared to the current position.
We absolutely oppose and will continue to vigorously oppose any changes to horizontal fiscal equalisation.
Horizontal fiscal equalisation is a vital characteristic of our federal financial relations. It provides fairness, ensuring that all Australians, no matter where they live, can access reasonable standards of essential public services.
To those who are campaigning against horizontal fiscal equalisation I call on them to honour the nature of our Federation.
We also strongly oppose an increase in the rate of the GST, and a broadening of the GST base.
An increase in taxes might seem attractive to some as a response to the budget mess we inherited, but our view is very clear: We cannot tax our way into prosperity, we must rein in spending.
This will be a long process, and we won’t get the best outcomes for our state unless we engage constructively and positively.
Will Hodgman, Premier
