GST not enough for health: analyst

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Health policy analyst Martyn Goddard outside the Royal Hobart Hospital.

Health policy analyst Martyn Goddard said the State Government was not spending special Commonwealth Grants Commission funding on health. Source: News Corp Australia

THE State Government says Tasmania cannot rely on GST revenue to improve the health system.         

Independent health policy analyst Martyn Goddard has said State Government health funding would have to increase by at least $500 million to bring the state’s services up to the standard of other states.

Mr Goddard said the Commonwealth Grants Commission, which decides GST distribution, would give Tasmania $169 million this year and $266 million next year in recognition of the state’s older and poorer population and their impacts on the health system.

But he said the State Government was not spending this money on health.

“If this money was spent for the purpose the Grants Commission intended, the per capita amount spent by the State Government on health would be well above the national average.

“In fact, it has for many years been significantly lower.”

Health Minister Michael Ferguson said the Government now spends more than average per capita on health expenditure.

He said GST funding was not tied funding.

“We have to balance our health funding with funding needs in other areas such as education,” he said.