Liberals' Pact Will See South Australia Lose Around $1 Billion

09 May 2013

Tony Abbott cant hide his secret GST plans anymore plans that would see South Australia lose around $1 billion a year.
Late yesterday it was revealed that Victoria, Queensland, NSW and Western Australias Liberal Premiers have formed a pact to change the way GST is distributed, a move Tony Abbott thinks makes a lot of sense1.
Just two weeks ago, Tony Abbott said he would leave it to the states to organise a GST deal:
ABBOTT: Colin Barnett as I understand it thinks that it might be possible talking to the Premiers of Queensland, New South Wales and Victoria and himself, to come up with something that doesnt disadvantage the smaller states but which is fairer to the bigger states.
KELLY: In other words that New South Wales and Victoria would be worse off?
ABBOTT: Well, Im going to leave it in the hands of the state premiers. If they can come to me with something that is a fairer system I am all ears.

[AUSTRALIAN AGENDA 21 APRIL 2013]

Well, yesterday in the WA Parliament, Colin Barnett revealed exactly what that deal is:
BARNETT: Those four states' premiers and treasurers have a broad in-principle agreement that the GST should be progressively changed so that most of the money is allocated on a per capita basis.
Tony Abbott would be prepared to stand by and let around $1 billion be taken out of South Australias annual state budget, hitting our schools, hospitals and essential services.
The Gillard Government supports the current GST distribution which helps ensure all Australians have access to the same level of services no matter where they live.
Weve been clear about this Tony Abbott needs to do the same.
The only way Tony Abbott can deliver on Colin Barnetts deal is by taking money away from South Australia.
South Australians deserve to know what an Abbott Government would mean.
ENDS
1 I think that what ought to be very seriously considered by the government right now is the proposal that all the Liberal states have put up, that the GST revenue should be distributed on what is closer to a per capita arrangement. This is the unified position of the Coalition premiers. I think it makes a lot of sense.

TONY ABBOTT THE AUSTRALIAN 1 MAY 2012