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Tasmania can handle MYEFO: Treasurer

AAP logoAAP 19/12/2016

Tasmania's Liberal government has dismissed as "relatively neutral" the impact of changes to GST estimates outlined in the nation's latest economic snapshot.

Having previously argued that the island state could not withstand a reduction in GST revenue, Treasurer Peter Gutwein on Monday took a tempered approach to news in the mid-year economic and fiscal outlook (MYEFO) of a likely decrease.

"MYEFO presents a relatively neutral GST impact in total over four years of a $12.1 million reduction, as a result of a smaller national pool offset by a projected larger population share for the state," he said.

"With around $10 billion in GST receipts being received over this period it is but a fraction of a percentage change."

The treasurer further welcomed news Canberra will uphold its federal election financial commitments to Tasmania, including $150 million toward the expansion of the University of Tasmania's northern campus.

Mr Gutwein said the scrapping of the Green Army initiative was disappointing, although he noted the continued funding of existing contracts for the practical environment and heritage conservation program.

The Tasmanian administration will look more closely at the MYEFO as it works to prepare the state's mid-year economic update due early in 2017.

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