Liberal backbenchers concerned their home states will be ripped off under the GST overhaul
PRESSURE from Liberal backbenchers concerned their home states will be ripped off under the GST overhaul is forcing the government to consider backing a Senate inquiry into the plan.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
PRESSURE from Liberal backbenchers concerned their home states will be ripped off under the GST overhaul is forcing the government to consider backing a Senate inquiry into the plan.
It could be used as a peace deal with backbenchers who are threatening to side with Labor to force a major change to the proposed law that would insert a guarantee that no state would be worse off.
The government is also likely to delay debating the proposal within its party room until at least next week, which means the it could not be put to the Senate until next month.
Labor has pledged an to introduce an amendment to guarantee no state would be worse off under the changes, which makes changes to the way the cash pool was divided up.
Treasurer Josh Frydenberg faced strong backlash from state treasurers for refusing to lock into law that no state would lose out under the “fix”.
MORE NEWS:
Was pilot knocked out in Sydney Seaplanes plunge?
How Meghan and Harry will spend time in Sydney
Why Thurston nearly gave it all away
Senators the Tasmanian Liberal senators have confirmed they would consider crossing the floor to support the amendment while NSW and South Australian Liberal governments were lobbying their federal counterparts to do the same.
A Senate inquiry into the changes seems almost certain without government support.
Centre Alliance Senator Rex Patrick said he expected the Bill would be referred to a committee for an inquiry to ensure the changes would not negatively affect some states.
An Opposition spokesman said Labor supported a committee inquiry in principle but would need to see the details.