The Tasmanian Government has slammed the idea of raising more federal funds via Medicare instead of the GST, despite Premier Will Hodgman saying he welcomed debate on the issue.
On Thursday, Mr Hodgman signed a communique at the Council of Australian Governments (COAG) meeting in Sydney keeping the door open on a proposed hike to the Medicare levy.
“All leaders agreed to keep commonwealth and state tax changes on the table, including the GST and the Medicare levy,” the document read.
But after Tasmanian Labor spokesman Scott Bacon endorsed a change to the Medicare levy, which has also been championed by Queensland Premier Annastacia Palaszczuk and Victoria’s Daniel Andrews, the Government’s position shifted.
Tasmanian Small Business Secretary Adam Brooks issued a statement on Friday slamming the idea.
“This proposal, which will rip around $1,000 per year out of the pocket of working Tasmanians, will have serious negative flow-on effects to local businesses,” he said.
“Labor’s solution to fixing their budget mess is always to tax people more without thinking of the consequences on families or small business.”
Hike in Medicare levy ‘more equitable’
Tax changes were front and centre at COAG this week, after New South Wales Premier Mike Baird called for the base rate of the GST to be increased to 15 per cent.
The Premier’s come back with absolutely nothing and now; he’s too afraid to front the cameras and explains that to the Tasmanian people.
Tasmanian Labor spokesman Scott Bacon
The Tasmanian Government, Opposition and the Greens all opposed that proposal and any change to the distribution of GST amongst the states and territories, which currently favours Tasmania.
Mr Bacon said the competing Queensland and Victorian proposal of an increase to the Medicare levy to 4 per cent was a more equitable way for the Commonwealth to raise extra revenue.
“We believe that those who are most able to pay should be the ones that pay the larger amount to make sure that we can fund our hospitals and our schools well into the future,” he said.
Tasmanian Greens MP Andrea Dawkins proposed making companies pay more tax.
“A lot of time and money is being spent to avoid paying tax in Australia, which could be paid here,” she said.
Hodgman in hiding, Labor and Greens say
Both Ms Dawkins and Mr Bacon also used media events on Friday to accuse Mr Hodgman of going into hiding.
Mr Bacon claimed the Premier had returned empty handed from Sydney after saying he wanted to recoup $2.1 billion in health and education funding.
“The Premier’s come back with absolutely nothing and now; he’s too afraid to front the cameras and explains that to the Tasmanian people,” Mr Bacon said.
Mr Hodgman’s office denied that and indicated the Premier had spent the day in meetings and was too busy to hold a media conference to discuss the COAG outcomes.
Mr Hodgman did use a Thursday interview with 936 ABC Hobart to claim COAG had been a success.
He also used the interview to trumpet his role in working with Mr Andrews to investigate ways to make the Tasmanian health system more efficient.
The state’s two peak health unions and the Australian Medical Association said they were in the dark about the actual nature of the Premier’s investigation.