Stadium funds given GST exemption, Federal Treasurer announces

The Federal Government has announced Hobart’s $240m stadium funding will be exempt from GST calculations, having previously described discussion surrounding the topic as ‘weird’.

Detailed plans for Hobart’s new AFL stadium.

The federal government will exempt $240m of stadium funding from GST calculations.

Friday’s announcement comes after a long campaign by the state government.

It means the federal funding for the Macquarie Point precinct will not result in reduced revenue for the state.

Under longstanding arrangements, federal grants are taken into account by the Commonwealth Grants Commission when calculating the state’s rightful share of GST in the years following their delivery.

The Australian Treasurer Jim Chalmers. Picture: NewsWire / Glenn Campbell

Federal Treasurer Jim Chalmers wrote to Treasurer Guy Barnett informing him of the decision.

He said the entire $240m the Commonwealth was providing for the Macquarie Point Urban Renewal Project would be exempted from clawback.

Mr Barnett welcomed the news, saying this was a fair outcome for Tasmanians.

“We have advocated long and hard to the Federal Labor Government to secure this outcome, and we are pleased that they have finally done what’s right,” he said.

“Despite holding a position for months that Tasmania would not be granted the exemption like other states, our government has never stopped fighting for our fair share.”

The federal Labor party hailed the decision.

“This exemption will safeguard critical funding for our state’s hospitals and schools,” the party said in a statement.

‘This is a decision we advocated for because we will always put Tasmanians first.

“Our government is delivering tax cuts for every Tasmanian taxpayer and energy bill relief for households and small businesses.”

Independent Senator for Tasmania Tammy Tyrrell said she had pushed hard for the exemption to be granted.

“Tassie’s state budget will be $220m better off because of this,” she said.

“That’s how much of a hit Dean Winter said Tasmania’s schools, hospitals, roads and energy bills would be taking if I hadn’t managed to carve-out the stadium money from our GST distribution.”

“Politicians of every colour have banged on about how terrible this funding deal was for Tassie.

“State Labor whined, State Liberals pouted, federal MPs and senators tut-tutted how dreadful it all was but it took an independent Senator to get it done. That’s the value of someone who doesn’t have to worry about pleasing a party room and is here only for Tasmania.”

Senator Tammy Tyrell. Picture: Simon Sturzaker

Senator Jonno Duniam said he had pushed for the exemption too, when others had given up.

“The Liberals led the charge to secure this exemption,” he said.

“We had every Federal politician bar Labor representatives sign a letter to the Federal Treasurer seeking this outcome over a year ago, but we didn’t hear from them. If the Government really cared about our state, they would have done this themselves and not left Tasmania in the lurch.”

“Labor had to be brought kicking and screaming to this outcome. It was the wrong funding arrangement for Tasmanian and, while belated, we welcome this announcement.”

Former Treasurer Michael Ferguson repeatedly accused his federal counterpart of giving Tasmania a raw deal — given that Queensland was granted an exemption for Olympic Games sporting infrastructure.

At one point he accused federal treasurer Jim Chalmers of having “abandoned Tasmania” with a “cowardly decision”.

Prime Minister Albanese has previously strongly indicated that Tasmania would not be given special treatment.

“This is a really weird question that I only get in Tasmania. It will be treated the same as every other infrastructure project everywhere in the country,” he said in January this year.

A federal election is expected in early 2025.

Originally published as Stadium funds given GST exemption, Federal Treasurer announces