Tasmanian Labor has refused to rule out introducing new taxes to repair the state’s $13 billion debt, with would-be independent treasurer Ruth Forrest saying all options must be considered.
Speaking in Hobart today, Forrest said the grim financial outlook meant nothing could be excluded if the budget was to be put back on a sustainable footing.
“I’m not ruling anything out. We need to fix the budget,” Forrest told reporters. “It’s a pretty simple equation. If you spend more than you get in, you’re going into debt.”
“So we do need to look at spending, absolutely and we do need to look at revenue. What the solutions are on either of those sides are to be considered.”
The remarks mark a shift from Labor’s election campaign position, when leader Dean Winter categorically ruled out new or increased taxes.
Winter today acknowledged the change in tone but said the reality of the state’s finances required a rethink.
He will hold a budget roundtable on September 5 with business, union and community representatives to examine both revenue and spending measures.
“We have no plans for new taxes. But as part of this budget roundtable, we are going to need to look at revenue and expenditure options,” Winter said.
Labor’s stance comes as it works to win over crossbench MPs in support of a no-confidence motion against the Liberal government when parliament resumes next week.
As it stands, the motion will fail, with the Greens ruling out backing Labor unless Winter agrees to negotiate and adopt some of their policies.
But Winter said that was not going to happen.
“I’m not going to compromise on my beliefs or values. I mean, what sort of lead-out would do that?” he said.
