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Painful outlook for Tas under WA GST plan

AAP logoAAP 13/12/2016

Tasmania would need to raise taxes by almost 50 per cent or make major spending cuts to cope with the GST redistribution model suggested by Western Australia, an economist says.

Saul Eslake said Tasmania, with the nation's oldest population and high dependence on welfare, relies on the GST revenue stream and is vulnerable to changes in current sharing arrangements.

"If WA ever got its way Tasmania's government would lose a billion dollars worth of revenue and have to cut spending by 20 per cent or raise taxes by close to 50 per cent in order to have the same bottom line," he told a Tasmanian Chamber of Commerce and Industry group in Hobart on Wednesday.

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