The State Government today has welcomed the Turnbull Government’s promise that ‘no state will be worse off’ under its proposed GST funding deal.
Premier Steven Marshall said he also obviously welcomed the Federal Government’s outright rejection of the disastrous Productivity Commission recommendation which could have cost SA more than $500m a year.
“We have had months of productive discussions with the Prime Minister and Treasurer, always maintaining our position that we wouldn’t support any change to the GST deal which disadvantaged SA,’’ said Premier Marshall.
“My government has long campaigned to protect our state’s GST funding and we acknowledge Federal Government estimates that the proposed new model will see an additional $257m flow to SA over the next 8 years to 2026/27.
“Over the coming months our Treasury Officers will work with Federal Treasury Officers to assure us that any proposed agreement will mean SA is, in fact, no worse off.”
Premier Marshall said the breakthrough to the proposed deal was the decision by the Federal Government to inject extra non-GST money into the GST pool. That has been the key to the PM’s promise that ‘no state will be worse off’.
“After SA Treasury’s detailed analysis is conducted, obviously the SA Government will only agree to the proposed deal if it is in South Australia’s best interests to do so,” said Premier Marshall.