Stadium cash to come out of state’s GST share as budget woes mount

The state treasurer has lashed his federal counterpart after Tasmania took a $240m hit to its budget.

Federal Treasurer Jim Chalmers at the Launceston Medicare Urgent Care Clinic. Picture: Stephanie Dalton

A $240m federal grant for the redevelopment of Macquarie Point will be deducted from the state’s GST payments — angering state treasurer Michael Ferguson.

Federal Treasurer Jim Chalmers informed the state government of his decision not to exempt the grant from GST calculations on Thursday.

It means the money — most of which is expected to go towards an AFL stadium — will be deducted from the state’s share of GST revenue.

It will add to the state’s budget woes, as soaring debt and the likelihood of further deficits prompt talk of public sector job cuts.

Mr Ferguson accused the federal government of having “abandoned Tasmania” with a “cowardly decision.

Deputy Premier Michael Ferguson. Picture: Stephanie Dalton

“The federal government has officially given up on our state with confirmation today in writing that the federal government will not make Macquarie Point Urban Renewal Precinct exempt from the GST calculations, in what I describe as a shocking rejection by the Federal treasurer in Canberra, making Tasmania wait one year for news that was not worth waiting for,” he said.

“I want to make the point as well that until now we have worked very respectfully and cooperatively with our federal counterparts — but the gloves are off now.

“We’re not going to be playing nice on this matter, we will be challenging this decision.”

Mr Chalmers has exempted spending on Olympic venues in his home state of Queensland from being offset against GST calculations.

He defended his position on Macquarie Point during a visit to Hobart on Wednesday.

“That’s just consistent with the way that these kinds of urban renewal projects are treated, and for stadiums which are not for big international events like the Olympics,” he said.

“And so, the comparison, the precedent that I’d encourage you to check out is from my own home State of Queensland when we put $100 million into the Townsville Stadium, beautiful stadium in Townsville, that was not exempt either from the GST calculations.

“And so, these calculations are done at arm’s length by the Commonwealth Grants Commission.

‘It is the norm that they not be exempt unless they’re for a big international event like the Olympics.”

Originally published as Stadium cash to come out of state’s GST share as budget woes mount