Honesty needed today from Hodgman-Gutwein on potential $367 million GST cut

• Hodman and Gutwein unable to deliver truthful budget while GST hangs in the balance
• Liberals need to produce additional budget forecast based on Turnbull’s sneaky assurances
• Premier and Treasurer should explain effects of potential $367m cut
The Premier and Treasurer need to finally show honesty around a potential $367 million cut to Tasmania’s GST revenue instead of hiding behind the Prime Minister’s tricky “guarantee”.
Shadow Treasurer Scott Bacon said leading economist Saul Eslake’s concerns that Tasmania could receive $367 million less GST revenue in just three years’ time and his call for the Liberals to produce a supplementary budget forecast based on the assurances provided by the Prime Minister was valid.
“The level of uncertainty surrounding this year’s budget revenue is unprecedented,” Mr Bacon said.
“Premier Hodgman and his Treasurer Mr Gutwein need to explain today how they intend to frame up a truthful or genuine State Budget next week when there is no certainty around Tasmania’s share of GST revenue.
“Putting together a long-term budget strategy for Tasmania is not possible with GST revenue missing from 2019 onward despite Malcolm Turnbull’s deeply tricky assurances of a ‘guarantee’.
“We have seen the Australian Treasury refuse to even try forecast GST distributions within this environment, yet Peter Gutwein is proposing to produce a budget that is reliant on this money for 40 per cent of its revenue.
“A $367m cut in GST in 2021-22 would cripple Tasmania’s public services.
“If Premier Hodgman and his Treasurer were serious about standing up for Tasmania, they would quantify what that sort of cut would actually mean for Tasmanian public services.
“What would it mean for the state’s continuing health crisis and growing housing crisis?
“Can Mr Gutwein guarantee that the Liberals’ $2.4 billion in election promises will be delivered in these circumstances?
“Any change to GST implemented by Malcolm Turnbull will disadvantage Tasmania – even Premier Hodgman’s own Department of Treasury and Finance has warned that is the case.
“Premier Hodgman knows that, his Treasurer knows that and they must also accept Tasmania is in this position because they lost the battle by not even putting up a fight.”

Scott Bacon MP Shadow Treasurer 3 June 2018