The federal government has agreed to exempt $240 million of Macquarie Point Urban Renewal Project funding from GST calculations.
The decision, which follows a persistent campaign by the state government, ensures that the state’s revenue will not be reduced by the federal funding allocated to the Hobart waterfront precinct.
Tasmanian Treasurer Guy Barnett on Friday said the exemption had been confirmed with him by Federal Treasurer Jim Chalmers.
“The Federal Government can see that this is the right thing for Tasmania. They know it’s the fair thing for Tasmania. They’ve done that backflip after 18 months, nearly two years,” he said.
“We will not be hoodwinked. We will not be treated like second-class citizens. The Federal Labor Government know that’s the right thing to do and we’d expect all politicians in Canberra to treat Tasmania with respect.”
“Despite holding a position for months that Tasmania would not be granted the exemption like other states, our government has never stopped fighting for our fair share.”
All levels of politics have claimed credit for the exemption, including Independent Senator Tammy Tyrrell and Tasmanian Federal Labor representatives.
“State Labor whined, state Liberals pouted, federal MPs and senators tut-tutted how dreadful it all was but it took an independent Senator to get it done,” Tyrrell said.
Tasmanian Federal Labor said the decision was one they “advocated for because we will always put Tasmanians first”, a claim disputed by Liberal Senator Jonno Duniam.
“Here is a letter we put together 18 months ago asking Jim Chalmers to exempt the $240m from GST calculations,” he wrote on X.
“Every Federal Tasmanian MP signed this except our Labor reps. They were never keen to do this and had to be brought kicking and screaming to this outcome.”
Prime Minister Anthony Albanese had previously indicated Tasmania would not be given VIP treatment, while Liberal leader Peter Dutton over the weekend said he would be open to granting a GST exemption if his party wins the next federal election.
