Tasmanian Treasurer Peter Gutwein is holding his breath as state and territories squabble about changes to GST distribution, with any reduction in funds set to carve a hole in the island state's upcoming budget.
Providing a sneak peak at the May 28 document, Mr Gutwein on Friday said Tasmania is well placed based on the recommendations of the Commonwealth Grants Commission, which would deliver $132 million more next financial year than previously expected.
But a cautious Mr Gutwein is not relying on the funds just yet.
"Depending on the decisions of the federal treasurer, GST receipts for 2015-16 could be anywhere in the range of around $100 million less than budgeted through to an improvement of more than $100 million," he said.
Premier Will Hodgman has vowed to fight any cut to his state's GST revenue as Western Australia seeks a greater slice of the pie.
After a cost-cutting 2014-15 budget which axed hundreds of public sector jobs, Mr Hodgman has promised there will be no further trauma in the coming year, but presumably that commitment was based on Tasmania receiving a healthy GST revenue return.
On Friday Mr Gutwein said the Liberal government would value its funding.
"If Tasmania does receive higher than budgeted GST revenue, this government will not fall into the trap of increasing recurrent spending, especially on wages," he said.
"We will invest in job-creating productive infrastructure that will continue to support and generate jobs and economic activity long after the money has been spent."
The upcoming budget will spend money on the roll-out of a state-wide planning scheme that makes is faster, fairer, simpler and cheaper to renovate or build a home and also aid major construction projects, Mr Gutwein said.
There will be funding for road, rail and irrigation improvements and expansion which the government said will drive jobs growth.
Money will also be set aside for attracting international investment.
"Our budget trajectory is now in a much more sustainable position and there will not be any additional structural savings measures in 2015-16," Mr Gutwein said.
Tasmania is on track to deliver a budget surplus in five years, he added.
But state Labor leader Bryan Green criticised Mr Gutwein for suggesting the state's woes are over.
"The consequences of Liberal's deep cuts in the last budget particularly in health and education will be felt across Tasmania for years to come," he said.
Tasmanian Greens leader Kim Booth dismissed Mr Gutwein's outlook as political rhetoric and called for a focus on the long-term structural reform of the state's financial base.
"We need an independent state taxation review, and analysis of current expenditure priorities, to help develop a plan for long-term structural reform and drive a more robust and resilient economy," Mr Booth said.
Share
