Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Hansard source

I acknowledge the gentleman from Tasmania has asked the question in the presence of one of his distinguished Tasmanian predecessors in the House of Representatives. The government has been given the Productivity Commission's final report on horizontal fiscal equalisation, which examined our system for determining how GST revenue is distributed among states and territories. This will be released within weeks, not months, but we have to go through and read it carefully. The government has committed to release the report in June. As the Treasurer has committed, both cabinet and the state and territory treasurers will have the opportunity to be briefed on the report before it's published. There will still be an exhaustive process that follows the Productivity Commission report's release. We'll consider its recommendations and work with the states and territories to come up with a package of reforms. It's important we take the time to fully examine any proposed changes to our system of horizontal fiscal equalisation and understand state and territory views and perspectives. It's also important that any new arrangements be seen as fair everywhere. They have to pass the pub test in Burnie, as they do in Bunbury, Ballarat or Bendigo, right around the country. I say to the honourable member: whatever changes are made to the GST to make it fairer or more transparent, payments to Tasmania will not be reduced a cent. Tasmania will not lose a cent. We will ensure that.

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