Senate debates

Thursday, 8 February 2018

Questions without Notice

Goods and Services Tax

2:11 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Finance, Senator Cormann. A fortnight ago, the Tasmanian Liberal government released the revised estimates report, which lists the Turnbull government's proposed changes to the GST formula as a major risk to the Tasmanian state budget. It says:

Tasmania's share of the GST could fall by … $168 million.

Does the government agree with the Tasmanian Liberal government's report?

2:12 pm

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

Let me point out again what I've pointed out all week: right now, all that is happening is a Productivity Commission inquiry into the effects of horizontal fiscal equalisation on national productivity and wealth. That is because this federal government wants to ensure that the pie that is available to be shared around Australia, across all of the states and territories across Australia, is as large as possible. We want to ensure that our economy is as strong as possible, which is why we are wanting to make sure that policy settings facilitate stronger growth and, also, a bigger pie of GST revenue to be distributed among all.

There has been no final report. There have been no final recommendations. There is no government position in relation to a report that has not yet been received. The whole question is hypothetical, it's academic and I've addressed it in detail over the past week.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Singh, a supplementary question.

2:13 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

Given the minister has twice, if not more than twice, ruled out severe cuts to Tasmania's share of GST distribution, which scenario will the Turnbull government use to change the GST formula and what impact will it have on Tasmania's budget?

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

You can ask the question in whatever way you want, but there is no proposal before government. The process that is underway is very transparent. When there is a report with recommendations in front of the government, we will consider them and, of course, we will seek to secure consensus among all jurisdictions in relation to those matters that we think are sensible.

Government Senators:

Government senators interjecting

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Order on my right. Senator Singh, a final supplementary question.

2:14 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | | Hansard source

With Turnbull government members, like Warren Entsch, calling for Tasmania's share of the GST to be cut, and Tasmanian Liberal senators saying absolutely nothing, why isn't this government prepared to tell Tasmanians how much they will lose under its changes before they go to the polls on 3 March?

Photo of Mathias CormannMathias Cormann (WA, Liberal Party, Minister for Finance) Share this | | Hansard source

The first thing I would say is that obviously the re-election of the Hodgman government is what is in the best interests of the people of Tasmania, because, if you look at the economic growth achieved under the Hodgman government, it leaves any previous Labor-Green administration absolutely for dead. So I would strongly encourage the Tasmanian people to re-elect Will Hodgman as the Premier of Tasmania.

The next thing I would say is, from a national point of view, we want all states and territories and the people in all states and territories to have the best possible opportunity to get ahead. That is why we want to ensure that horizontal fiscal equalisation arrangements will achieve the largest possible pie of GST to be shared around. Now there is no report before government. When there is a report before government, we will consider it and, in relation to any recommendations that we may decide to support, we will seek a consensus with all states and territories.