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NSW Senator David Leyonhjelm lashed for calling SA a ’beggar state’ that should be thrown out of the Australian federation

A NSW senator has been condemned for describing South Australia and Tasmania “beggar states” that should be thrown out of the Australian federation. What do you think — TAKE OUR POLL

Scott Morrison rules out GST increase

NSW Senator David Leyonhjelm has been condemned for describing South Australia and Tasmania as “beggar states” that should be thrown out of the Australian Federation.

During a Senate debate on changes to the way GST revenue is shared between the states and territories, Liberal Democrat Senator Leyonhjelm called for SA and Tasmania to “begxit” from Australia.

Under the changes, SA will get an extra $257 million in GST funding between 2021 and 2027.

Senator Leyonhjelm criticised states that received more GST revenue than was raised within their own borders

“In fact, what we need is a ‘begxit’, where the beggar states exit the Federation,’’ he told Parliament.

“But the beggar governments of these states never do anything for themselves, so they won’t exit of their own accord.

“ The rest of us, with the Liberal Democrats at the vanguard, will need to arrange it for them.’’

Senator David Leyonhjelm
Senator David Leyonhjelm
Centre Alliance Senator Rex Patrick
Centre Alliance Senator Rex Patrick

Labor Senate Leader Penny Wong said South Australians deserved fair funding for local jobs, hospitals, roads and rail.

“The only beggar here is Senator Leyonhjelm chasing another cheap headline,’’ Senator Wong said.

“He’s just envious of a state of free settlers that gave women the right to vote and stand for parliament years before his, decriminalised homosexuality years before his, and makes better wine.”

Centre Alliance Senator Rex Patrick said Senator Leyonhjelm’s comments were unfair and ill-informed.

Senator Patrick said he would be happy to take Senator Leyonhjelm on a personally-funded tour of SA.

“David would be responsible for getting himself past quarantine,’’ he said.

Finance Minister Mathias Cormann said the new GST revenue-sharing system was designed to ensure that Australians in all states had access to vital Government services.

“It is a plan that leaves all states and territories better off,’’ Senator Cormann said.

In 2016, Senator Leyonhjelm compared SA to an obese, smelly 40-year-old man who lived with his mother and refused to work.

Senator Leyonhjelm wants to abolish the principle of “horizontal fiscal equalisation’’, which is used to divide funding between the states based on need.

The Federal Government’s changes to the GST revenue formula are being introduced to address demands by West Australian politicians for more funding to their state.

Under the new arrangements, the Federal Government will use top-up funding to ensure that no states are worse off in the period to 2027.

The Productivity Commission will undertake a review in 2027 on whether the system is working.

State Treasurer Rob Lucas backed the reforms after the Federal Government agreed to safeguards to protect SA. Federal Labor supports the changes.

Originally published as NSW Senator David Leyonhjelm lashed for calling SA a ’beggar state’ that should be thrown out of the Australian federation

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Original URL: https://www.news.com.au/national/south-australia/nsw-senator-david-leyonhjelm-lashed-for-calling-sa-a-beggar-state-which-should-be-thrown-out-of-the-australian-federation/news-story/4150047855e1fc14c21d81f9d00b2460