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GST for me...

It’s a long flight From Launceston, Tasmania to Perth, Western Australia; two flights for those travelling from the northern capital. Not lengthy by international standards where the LAX -Melbourne flight reigns supreme in terms of testing emotional strength, but a long internal flight from the bottom of the earth to a point just slightly above.

Business travel presents significant opportunities for catch-up; reading meeting papers or making time for professional reading. However, I am predictable and, although with the best of intentions, a movie will take my fancy, and the in-depth component of work tasks will have to wait.

Western Australia is, by landmass, Australia’s largest state - 2,527,013 square kilometres (32.9% of Australia’s total) compared to Tasmania’s 68,401 (0.9%). It is rich in natural assets, particularly minerals, and rugged coastline, which attracts workers and tourists alike. In some ways, West Australians are like Tasmanians; isolated from the east coast and proudly displaying a chip on their shoulders. They defend their sovereign right to govern and protect their assets and footballers from “invading” states who are keen to pinch talent and wealth.

Western Australia like Tasmania has seen the best of times. The wealth generated from the construction, infrastructure, gas and mining boom had to be seen to be believed, with the calling so strong that many changed careers to relocate and cash in.

Approaching Perth, you can almost hear the Tassie jibes coming from homeward bound passengers: “Don’t forget to pay-back some GST when you land? Do we receive compensation when holidaying in Tasmania? Did you remember your passport? Customs can be hectic!”

Rebuttal, as a result of regular practice, flows uninhibited with return volleys presented to challenge predictable thinking: “You blew the budget. You spent the inheritance. That’s why it’s called the Commonwealth of Australia. The minerals belong to everyone.”

Horizontal fiscal equalisation (HFE) sounds like a complex economic theory, but it simply means members of the Commonwealth of Australian States and Territories receive redistributed money based upon need.

The Productivity Commission, which last completed an analysis of distribution in May 2018, defined HFE:

Australia’s system of horizontal fiscal equalisation (HFE) transfers GST between the States and Territories (hereafter States) with the aim of equalising States’ fiscal capacities to deliver public services. HFE has often been a point of contention with the States, as each has vied for a larger share of the funding pool.

Therefore, Tasmania receives more, per capita, of the GST cake because of the challenges we face in delivering public services. Consequently, with WA contributing most to the pool, it thoroughly grates our fellow Australians from the West.

Unfortunately, Tasmania continues to struggle to improve outcomes in education and health. Although many try to hide the facts, we are perennial under achievers, even with record investment.

It’s a vicious circle with poor education outcomes leading to poor health decisions. Additional resources are targeted to support – however we are playing inter-generational catch-up that cannot be resolved overnight. And that’s why Horizontal Fiscal Equalisation matters, and politicians will fight for our fair share on your behalf as a result. Tasmania’s continued outlay on those who need it most is dependent on this generous formula.

Yet, a thriving economy, underpinned by even stronger private investment, would lead to less reliance on the GST required to provide basic services, and that should be our goal.

Tasmania’s tourism and construction boom has improved our state’s resilience. We must capitalise to even-out the boom/bust economic scenario of which we are accustomed. Western Australia experienced incredible economic prosperity but is now struggling to maintain vibrant central business districts, strengthening their calls for a return of GST to assist with services. There are obvious lessons to be learned.

It was time to return home and, just to poke the bear some more, I chuckled when stunned by a massive billboard advertising direct flights to Hobart, with magnificent scenery enticing sandgropers south-east, welcoming you to Perth International Airport!

And for those wondering, it was a movie which, of course, caught my attention. A disturbing film that made me question, even further, much of what I already understood. Vice - the story of Vice-President Dick Cheney and his role following the September 11 strikes on the US thoroughly challenged me. And, as a result, I have no words...

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