The Tasmanian government has doubled down on its promise not to raise taxes, a stance Labor says leaves the state facing $3.3 billion in cuts to essential services.
The opposition will this week move a motion in parliament to force the government to reveal exactly where the axe is falling ahead of the looming state budget.
Shadow treasurer Dean Winter said the premier’s refusal to consider tax reform left only one path.
“That means the only way to achieve the target is to slash $3.3 billion from schools, hospitals and other public services,” he said.
Winter accused the government of “reckless financial management” that had delivered the largest deficits in Tasmanian history and cost the state its credit ratings.
He warned net debt could reach $140 billion by 2040 – about $233,000 for every Tasmanian.
Both major parties went to the last state election with a no-new-taxes policy, but Winter on Friday told the Poll Position podcast increases were now unavoidable.
“There is going to be tax increases,” he said. “You can say no new taxes all you like. All that means is that the cuts have to get bigger.”
Treasury’s own Fiscal Sustainability Report, released in February, warned spending cuts alone would not be enough to repair the state’s finances.
It found $3.3 billion in corrective action was needed over four years.
Net debt is forecast to hit $10.3 billion by 2028-29 and the deficit sits at roughly $1 billion.
The government’s current plan relies on $150 million in annual agency savings and 2,800 public sector job cuts by 2032.
Premier Jeremy Rockliff ruled out tax changes in his state of the state address earlier this month.
“In line with our election commitment, we will not be introducing new or increased taxes,” he said.
“We will not be punishing people for working hard and seeking a better life.”
Treasurer Eric Abetz, in a series of media releases issued over the weekend, said Winter’s comments amounted to a “stunning backflip”.
“Make no mistake, it is in Labor’s DNA to come after your hard earned dollars,” Abetz said.
“Mr Winter has made it clear that during challenging inflationary times, instead of helping Tasmanians, his focus is picking from their back pocket.”
Labor’s motion would require the government to disclose agency-by-agency savings targets, hiring freeze data, unfilled positions and any election commitments that have been abandoned.
“Tasmanians don’t know how or where these cuts are being made and the impacts they are having on … families because the Liberals are keeping it a secret,” Winter said.
Labor has not said which taxes – if any – it would increase, but other MPs have already been floating ideas.
Independent MP David O’Byrne last week called for “a proper, mature debate about tax” in parliament, while independent Kristie Johnston said the gambling, mining and agricultural industries should “pay their fair share”.
The Greens have previously called for higher taxes on large corporations and sectors such as salmon farming.
