Federal Treasurer Jim Chalmers rolls out $1.3b for Tassie
The state government deserved much of the credit for boosting the state’s GST, Treasurer Michael Ferguson says. See why >
Tasmania
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THE state government deserved much of the credit for boosting the state’s GST through population growth, Treasurer Michael Ferguson says.
The state is set to benefit from a $1.3bn GST windfall over the next four years — a 10 per cent increase above what the state government was expecting.
Federal budget papers attribute the rise to increased consumer spending nationwide and a federal government injection of funds into the GST pool, but Mr Ferguson said it was due to the hard work of the Liberals in Tasmania.
“I’m very pleased to see Tasmania is receiving a far better expected revenue on GST, we deserve that, we’ve earned it and we’ve worked damn hard for it,” he said.
“The biggest reason that the GST revenue predictions for Tasmania are going up is not because of any policy decision of the federal government.
“It’s entirely down to, I should say, it’s largely down to our population increase, which as you know, has increased by more than 30,000.
“Our population is now 570,000 people so that’s the biggest reason that we’ve actually seen our GST revenue predictions go up.”
GST accounts for around 40 per cent of the state government’s revenue and the predicated increase amounts to an increase of around four per cent in state revenue in each of the four year of the forward estimates.
“I’m really pleased about that and we’ve worked damn hard for that,” Mr Ferguson said.
“We’ve grown our economy, we’ve made difficult decisions.
“Tasmanians have returned home, and more people from Australia are calling Tasmania home because of our economic plan, and obviously the appetite for investment and employment that we have here in our state.”
In state parliament on Wednesday morning, Opposition leader Rebecca White said the government could well afford to give public servants a pay rise and address their push for better working conditions.
“With news of a $1.3bln state budget improvement overnight, will you move to address these longstanding structural issues?” she asked the premier.
Premier Jeremy Rockliff said that speaking of structural issues, Labor sacked nurses and closed hospital beds between 2010 and 2014.
Treasurer rolls out $1.3b GST windfall for Tassie
TASMANIA is set to benefit from a $1.3bn GST windfall over the next four years, the federal budget reveals.
Federal Treasurer Jim Chalmers’ first budget predicts the state will receive up a bonus of up to $370m a year from the goods and services tax.
It represents a 10 per cent increase in GST revenue for Tasmania between now and 2025/26 over what the state government was expecting.
Tasmania will benefit by a smaller increase in specific-purpose payments too – amounting to an extra $342m across the four years of the forward estimates.
Delivered against the background of a global economy teetering on the brink of recession, the continuing war in Ukraine, a global energy crisis and inflationary pressures, Mr Chalmers tagged the budget “a responsible Budget” and “the end of a wasted decade”.
He said it was a document “that is right for the times and readies us for the future”.
“It provides cost of living relief which is responsible, not reckless – to make life easier for Australians, without adding to inflation.
“It targets investments in a stronger, more resilient, more modern economy. And it begins the hard yards of Budget repair.”
Forecasts of economic growth were steady at 3.25 per cent this financial year but revised downwards from 2.5 to 1.5 per cent in 2023/24.
Unemployment is tipped to stay at or below 4.5 per cent nationally, but inflation will peak at 7.75 per cent at the end of this year before falling to 3.5 per cent in 2023/24.
Just seven months ago, those figures were pegged at three per cent and 2.75 per cent.
The budget forecast a deficit of $36.9bn this financial year, instead of $78bn in the Morrison Government’s March budget it supersedes – and total deficits of $181bn across the next four years, down from $228bn.
The nation’s government gross debt tops $1.1 trillion in 2025/26 at 43 per cent of GDP.
The Treasurer warned of “hard days to come, and hard decisions to accompany them” but said the nation’s resilience, pragmatism, co-operation and confidence would see us through.
Chief among the measures the Treasurer announced to reduce the cost of living were cheaper child care, greater access to paid parental leave, measures to reduce the cost of health care and medicine, fee-free TAFE places as well spending to assist with lowering the cost of energy and housing.
And, as foreshadowed by Prime Minister Anthony Albanese during his visit to Hobart last week, Labor appears to have delivered most of its election promises for Tasmania, including funding to the Hobart Airport runway, the Nyrstar upgrade; health, road and irrigation projects and Marinus Link.
As expected, there was no mention of funding the proposed Hobart AFL stadium.
But Tasmania will benefit from the funding included in the budget for the $800m in additional Antarctic spending announced by the Morrison government before the federal election.
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