25 February 2013

Liberals everything to every State on GST

The Liberals are hopelessly divided on GST distribution with Shadow Treasurer Joe Hockey today issuing a stinging rebuke to his WA colleagues who are openly campaigning for changes to the GST.

Shadow Treasurer Joe Hockey said in Tasmania today:

"Tasmania will not be worse off under the allocation of the GST under the Coalition."

[Doorstop – 25 February 25, 2013]

But Deputy Opposition Leader and West Australian MP Julie Bishop only weeks ago claimed Tasmania was "getting handouts from Western Australia":

"We agree that Western Australia should have a fair go and we'll certainly be looking at the GST in Government."

[Sky News – 10 February, 2013]

And of course, Tony Abbott himself has flagged that Tasmania's GST allocation would be on the chopping block under a Coalition Government:

"I think that it does seem quite unfair that the people of Western Australia get so little back for the GST revenue that they provide to the rest of the country.

"I think that what ought to be very seriously considered by the government right now is the proposal that all the Liberal states have put up, that the GST revenue should be distributed on what is closer to a per capita arrangement.

"This is the unified position of the Coalition premiers. I think it makes a lot of sense."

[1 May 2012]

Ms Bishop and other WA Liberal MPs are desperate to tell West Australians anything they can to help with Colin Barnett's re-election campaign.

Well the Coalition cannot be everything to every State on the distribution of the GST – it's about time they came clean with their plans for the GST.

The Gillard Government has already said we support the principle of Horizontal Fiscal Equalisation – that means not letting our smaller states fall behind the big, rich states.

The Gillard Labor Government will stand up for Tasmania while the Coalition's most senior frontbenchers want to strip it of its GST revenue to look after their Liberal mates in WA and Victoria.