Tasmanian Greens Senator Nick McKim says its ‘almost certain’ the state will lose GST revenue

Federal Treasurer Jim Chalmers has received advice on whether the Macquarie Point stadium should be exempt from the state’s GST calculations. What was said in Senate estimates.

Tasmanian Greens Senator Nick McKim. Picture: NCA NewsWire / Gary Ramage

Federal Treasury officials are not keen on Tasmania’s request for the Macquarie Point project funding to be exempt from the state’s GST calculations.

The state government has asked that the federal contribution of $240m be exempt in order to protect Tasmania’s GST share.

During a Senate estimates hearing in Canberra on Wednesday, Deputy Secretary for Fiscal Group Sam Reinhart said the GST calculation was a sophisticated system that ensured each state received its fair share, based on need.

“Any time things are carved out from that, whether it be sporting stadiums in individual states, it does contribute to undermining the fairness of that system. So we are very cautious about carving things out unless there’s a really strong ground for that,” she said.

CANBERRA, AUSTRALIA, NewsWire Photos. OCTOBER 19, 2023: Federal Treasurer Jim Chalmers holds a press conference at Parliament House in Canberra. Picture: NCA NewsWire / Martin Ollman

Tasmanian Greens Senator Nick McKim asked what advice Treasury had given to Federal Treasurer Jim Chalmers about whether the Hobart stadium and Macquarie Point should be exempt.

“We don’t see that it’s appropriate to carve out from the GST where states are undertaking spending that is … a contribution to that state rather than national infrastructure associated with a large scale project where the Commonwealth does tend to consider a carve outs,” Ms Reinhart said.

A final decision is set to be made by the end of the year.

Senator McKim said the answers given in estimates showed it was “almost certain” Tasmania would lose GST because of the Macquarie Point project.

“This is money that could have been invested into building more homes for people and improving our hospitals,” he said.

“Instead it will go into a deeply unpopular stadium that Tasmania simply does not need.”

Treasurer Michael Ferguson said he spoken with and written to Dr Chalmers about the extension.

“I have yet to receive a response, but Tasmanians will expect and deserve this support,” Mr Ferguson said.

“I was pleased to note recent comments by Dr Chalmers that indicate he is considering the matter but this is taking way too long and Tasmanians are getting rightfully annoyed.

“The simplest way for the Australian Government to ensure that its funding commitment actually benefits Tasmania is for Dr Chalmers to direct the CGC to quarantine it from future GST assessments – that would remove all doubt.

“They’ve done it for cash payments to the Queensland Labor Government for sporting infrastructure for the Olympics, and they can do it for Macquarie Point.”

Originally published as Tasmanian Greens Senator Nick McKim says its ‘almost certain’ the state will lose GST revenue