Tammy Tyrrell (Tasmania, Independent) Share this | Link to this | Hansard source

The GST is one of the most important pillars of our national economy. In 2025-26 it will inject more than $96 billion into the economy. This funds our hospitals, schools and essentials. For Tasmania, it is absolutely critical. With GST budget decisions ahead, I must stress that the only real option for Tasmania is full horizontal fiscal equalisation.

Tasmania is an island with a small and ageing population. We face unique structural challenges, and right now Tasmanians are being handed a poorly managed state budget heading in the wrong direction. That is not a burden Tasmanians should have to carry alone. That is why I'm advocating for a return to full HFE as a long-term sustainable policy. HFE helped save the Tasmanian economy, but since the 2018 reforms Western Australia—as Senator Sterle knows—has received $22.4 billion more in GST than under full HFE. The only thing that has minimised the effect on Tasmania is no-worse-off payments, but the necessity shows the system is not fit for purpose.

WA makes a significant contribution, and we acknowledge that, but this is a federation; strength and responsibility should be shared. Smaller states should not be left behind because of geography or circumstance. We are one country. With the right support behind it, Tasmania's economy can grow, creating opportunity in reducing inequality over time. The GST makes up more than 40 per cent of Tasmania's budget. Without it, a state budget already under strain, with debt projected to reach $13 billion by 2028, would reduce Tasmania's quality of life. The consequences would be real—weaker health services, stretched education, struggling families. I will not stand by and watch that happen. Full HFE is fair, responsible and necessary for Tasmania and for the nation.