Lift federal funding to solve budget woes: poll

Voters back greater federal funding as the best way out of Tasmania’s debt spiral, according to new polling by the Australia Institute. ANALYSIS >>

Australia Institute Tasmania director Eloise Carr. Picture: File

Voters back greater federal funding as the best way out of Tasmania’s debt spiral, according to new polling conducted by the Australia Institute.

The YouGov Galaxy poll commissioned by the think tank showed 36 per cent of those surveyed favoured going cap in hand to Canberra as the state’s best option, followed by raising mining royalties, with 29 per cent support.

Tasmania is facing rapidly rising government debt as government spending growth outstrips revenue growth.

Replacing stamp duty with land tax on primary residences received 12 per cent support, increasing motor vehicle registration 11 per cent and none of the above 12 per cent.

The online survey of 842 voters also found 74 per cent support for salmon companies to pay royalties for leases in public waters, with 14 per cent opposed.

A discussion paper produced by the Institute examined a range of policy options which could also raise revenue for the state. They included:

• Adopting a salmon licence auction policy similar to Norway, which could raise $1.7bn
• Raising taxes on pokies to 45 per cent, which would increase revenue by $34.5m a year
• Increasing mineral royalty arrangements to be in line with the national average, which would raise an additional $29m in 2025-26.
• Increasing motor vehicle stamp duties to closer to the averages in the rest of Australia. This could generate up to $113m a year.

Australia Institute Tasmania director Eloise Carr said the most profound reform would be a re-examination of the GST sharing arrangements.

In 2018, the Morrison Coalition government struck a deal for Western Australia to receive no less than 75c in the dollar from the GST pool, but promised to leave no state worse off in the short term.

The “no worse off” provision has been extended until the end of 2029-30. Tasmania’s GST share includes $120m in additional payments.

Ms Carr said the system of GST distribution needed to be revamped to help put Tasmania on a sustainable footing.

“The WA GST deal has been described as one of the worst public policy decisions of the 21st Century,” she said.

“The Productivity Commission will report by the end of next year on whether the new system is working, and — based on the evidence — the answer is no.

“If the government truly believes in equity and responsible fiscal policy, changing the GST carve-up will be high on its agenda.

“Further, broadening the GST to include private school fees and private health insurance is a straightforward way to increase GST revenue without increasing the rate.

“Tasmanians think more funding from the federal government should be a priority for whoever wins the election, and these modest, simple and fair changes would provide help repair Tasmania’s budget, while helping other jurisdictions at the same time.”

Originally published as Lift federal funding to solve budget woes: poll