Treasurer Michael Ferguson ‘expects’ Mac Point stadium GST exemption, despite Albanese comments

The Tasmanian government still expects that the Commonwealth will exempt the Macquarie Point stadium funding from GST calculations, after comments made by the Prime Minister cast doubt on the idea.

Treasurer Michael Ferguson. Question time in the Tasmanian parliament. Picture: Nikki Davis-Jones

Treasurer Michael Ferguson says he still expects the Macquarie Point stadium project will be exempted from GST calculations, despite Prime Minister Anthony Albanese appearing to pour cold water on the idea.

It comes after 11 of Tasmania’s Opposition and crossbench MPs in Canberra wrote a joint letter to federal Treasurer Jim Chalmers last week, urging him to ensure that the Albanese government’s $240m in funding for the revamp of the Mac Point precinct did not affect the state’s share of GST revenue.

In an interview with the Advocate newspaper, Mr Albanese seemed to temper expectations regarding a possible exemption for the project, saying he didn’t think critics of the funding deal understood “the way the GST formula works, frankly”.

Designs of what Hobart's new AFL stadium at Macquarie Point could look like. Picture: Supplied/AFL

“The GST formula applies everywhere, so it doesn’t make a difference for things like the Brisbane Olympic Games … where there’s far more expenditure than is being given for the Macquarie Point precinct,” he said.

“This is a formula that was established not by us, but by the Howard government.”

The Prime Minister’s comments have sparked fears from the state Labor Opposition and Liberal senator Jonathon Duniam that Tasmanian taxpayers could ultimately be on the hook to pay for the vast majority of the $715m stadium.

But Mr Ferguson moved to allay any concerns on Thursday, saying the Rockliff government had sought a GST exemption and “we expect the answer to be yes”.

“We require the federal government to treat Tasmania fairly,” he said.

Senator Jonathon Duniam. Picture: Nikki Davis-Jones

“And at this point in time, the federal Treasurer is the only person who’s lawfully able to provide the exemption – not the PM.

“He has not provided a yes or a no answer so we’re still in the mix and I expect proper consideration for Tasmanians.”

The state’s share of the national consumption tax is calculated by the Commonwealth Grants Commission, which assesses payments made to all jurisdictions when making an overall consideration of their fiscal strength.

The commission won’t consider the potential impact of the stadium funding on GST calculations until late 2024.

GST is the largest source of revenue for Tasmania, accounting for 42 per cent of total general government sector revenue in 2023-24.

Labor economic development spokesman Dean Winter said the stadium deal had been “botched from start to finish”.

Labor's Dean Winter speaks to the media on Parliament Lawns.

“What should have happened when the Tasmanian government negotiated with the Australian government was they should have negotiated within that the GST exemption,” he said.

“They didn’t do that. In fact, they didn’t actually ask formally for a GST exemption until after Labor asked about it in parliament question time.”

Senator Duniam said there was precedent for Tasmanian projects being exempted from GST calculations, such as the $700m for the Mersey Hospital in 2016.

“This move by Labor will rip away $240 million in Tasmania’s agency and ability to fund essential infrastructure, health and education needs,” he said.

Originally published as Treasurer Michael Ferguson ‘expects’ Mac Point stadium GST exemption, despite Albanese comments