Don Farrell (SA, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. Yesterday, the minister told the Senate that there is no proposal to cut the distribution of GST revenue to South Australia and Tasmania, but today we read in The Advertiser that Minister Birmingham intends to fight the government plan to reform how the GST is carved up. Who is misleading the people of South Australia: Minister Cormann, or Minister Birmingham and his South Australian colleagues?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Farrell for that question. Senator Farrell will be pleased to hear that Senator Birmingham and I are of one mind, and that is that there is nothing to fight. I should tell you that you shouldn't always believe everything that is written in the newspaper, because it does happen on occasion that newspapers cut corners and write things that are not entirely accurate.

What I said yesterday is 100 per cent true: there is no proposal right now before government. What is taking place right now—and it's a matter of public record and was announced by the Treasurer some time ago—is a Productivity Commission inquiry into horizontal fiscal equalisation to assess to what extent horizontal fiscal equalisation is impacting on national productivity and growth. That will ultimately report. So far there's been a draft report, of course, as we've also discussed. Earlier this week the Productivity Commission asked the Treasurer for a delay in the date for the delivery of the final report. When that report has been received, the government will consider it.

I confirm what I said to the Senate consistently all week: there is no proposal before government along the lines the Labor Party has suggested. I think you'll find that Senator Birmingham, who is nodding—because Hansard doesn't pick up nods—and I are 100 per cent on the same page.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Farrell, a supplementary question?

Don Farrell (SA, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Yes, I do have a supplementary question. The Productivity Commission draft report that you've just referred to proposes cuts in the distribution of GST revenue of $557 million to South Australia and $168 million to Tasmania. Will the minister now rule out any cuts to South Australia's and Tasmania's share of the GST?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

We're now going over old ground. You're just asking the same question that was asked earlier this week. What I would say to you again is that the Productivity Commission draft report is not a government report—it's not a government proposal—it's a draft report to government. It is currently the subject of further consultation—

Scott Ryan (President) Share this | Link to this | Hansard source

Order, Senator Cormann, please resume your seat. Senator Wong, on a point of order.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

This is the second time this week the Minister for Finance and the Leader of the Government in the Senate has been asked a direct question, which is to rule out any cuts to the GST to South Australia and Tasmania. We're giving him another opportunity to rule it out.

Scott Ryan (President) Share this | Link to this | Hansard source

Order! Senator Cormann is directly addressing the terms of the question. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

There is no proposal to cut GST to South Australia and Tasmania, and Senator Wong knows it. This is just another Labor attempt to mislead the Australian people. There is a process underway and, ultimately, if the federal government were to adopt certain recommendations in the final report that is yet to be received, that would be subject to appropriate processes, including through the Council of Australian Governments and, ultimately, to the requirement of unanimous agreement amongst all state and territory governments. This is just further Labor Party scaremongering, because you haven't got anything better to talk about.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Farrell, a final supplementary question.

Don Farrell (SA, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Given that the minister and the Turnbull government have again refused to rule out cuts to South Australia and Tasmania's share of the GST, isn't it now clear that Liberal senators will say one thing in their home state but tow the Liberal line in Canberra?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I completely reject the premise of the question. No amount of twisting, turning, spinning and whatever by Senator Farrell is going to change the fact that there is no proposal before government along the lines that Senator Farrell is suggesting. So, from that point of view, I fully reject the premise of the question.