Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. On 25 September, in Tasmania, the Prime Minister said that his government had not exempted the Queensland Olympic infrastructure from GST calculations, yet Treasury documents show that these projects actually have been exempt from GST calculations. Minister, are the Treasury documents wrong, or did the Prime Minister mislead Tasmanians? Can you confirm to the Senate whether or not these projects for the Queensland Olympics infrastructure are indeed exempt from GST calculations?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Duniam for the question. I don't have details of that before me. I do know that all states regularly seek exemptions for a range of different projects from GST considerations, including the Tasmanian state government from time to time, and they are dealt with through appropriate processes and decision-making. I don't have the specifics of the arrangements on the Queensland Olympic infrastructure with me, nor the comments that you say the Prime Minister made in Tasmania. I'm happy to see if there's any further information I can provide to the chamber.

Of course, we are the government that is looking to co-fund and support—

Sue Lines (President) Share this | Link to this | Hansard source

Minister, please resume your seat. Senator Duniam?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

President, by way of support for the minister, I'm happy to table the documents for the—

The:

Senator Duniam, resume your seat. Minister Gallagher.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well, forgive me for not accepting—

Opposition senators interjecting—

No, for the way the question has been asked. And for saying that if there is any further information I can provide to the chamber, I will undertake to do so. It is not unusual for states to seek GST exemptions for infrastructure. I would think every single state has applied to do so over the last few years. It goes through the appropriate decision-making and accountability processes for those decisions. Of course, the way GST is distributed is a matter for the Commonwealth Grants Commission, and, again, there's a range of views about how that GST is shared or allocated, and how the relativities are arrived at. There isn't universal agreement across the states about that either.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, first supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

On 25 September, the Prime Minister also suggested that, as infrastructure minister, he never signed off on anything exempt from GST in Tasmania. Except there is a document that he signed, dated 2 October, when he was minister for infrastructure, exempting $50 million of payments to the Tasmanian government for the Macquarie Point precinct from GST calculations. Minister, who is right: the Prime Minister at his press conference on 25 September, or the document he claimed he didn't sign in 2012?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm wondering why—

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order! The minister's on her feet. Senators on my left and my right. Order! Order, Senator Birmingham!

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Detective Duniam for the question.

Opposition senators interjecting—

Look, forgive me for—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, I do remind you that you need to refer to people by their correct title.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Sorry, Senator Duniam. Again, I haven't seen the transcript from which he's reading. I haven't got that detail in front of me. As I said, there is universal disagreement about this matter between states across the federation, particularly about what should and shouldn't be included for the relativities process. I know there have been exemptions from time to time—not for all the exemptions that have been sought—across all of the states across Australia. If there is further information I can provide, I'll come back.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, second supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

The Prime Minister cited Queensland's not having gotten an exemption as the reason for Tasmania being unable to get exemption for its stadium funding and cited his not having signed off on the Macquarie Point precinct funding as a reason for Tasmania not to get a GST exemption. Now that we know both of the projects got an exemption, will the Australian government do the right thing by Tasmanians and give us our GST back?

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order! Senators on my left and right—particularly the Tasmanian senators on my right—come to order!

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The decisions about how GST is distributed are made by the Commonwealth Grants Commission, where a relativity is provided through annual reviews.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please resume your seat. Minister Wong.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I wonder if we could try to listen to what Senator Gallagher is saying.

Sue Lines (President) Share this | Link to this | Hansard source

Well, Minister Wong, you may have noticed that I have been calling the chamber to order since we commenced question time. I don't think I've been very successful, but I will try again. I ask senators to listen in respectful silence whilst the minister is asking the question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The Commonwealth Grants Commission is responsible for determining the relativities for each state. I know that each state and territory usually participates in that and argues about why they should get a larger share of the GST than another state through direct consultation—

Sue Lines (President) Share this | Link to this | Hansard source

Minister Gallagher, please be seated. Senator Birmingham, wait until I call you to raise the point of order. Senator Birmingham.

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

The finance minister is wilfully seeking to mislead the Senate in her presentation of the arguments here.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Birmingham—

Simon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

The reality is that the government decides exemptions, not the Commonwealth Grants Commission.

The:

Senator Birmingham, please resume your seat! That is a debating point.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Senator Duniam asked me about GST distribution, essentially. That was his question: will Tasmania get some GST back? I'm saying that the way GST allocations are made is through the Commonwealth Grants Commission, so I completely reject Senator Birmingham's assertion there. This is done by direct submission to and assessment by the Commonwealth Grants Commission. They determine, and have always determined, the distribution of GST.