The current approach by the Commonwealth Grants Commission for the distribution of the GST ensures that all Australians have access to comparable services no matter which state or territory they live in.
But, Coalition governments are calling for a per capita GST distribution and Tony Abbott has flagged he would pursue this option if elected.
I think that what ought to be very seriously considered by the government right now is the proposal that all the Liberal states have put up, that the GST revenue should be distributed on what is closer to a per capita arrangement. This is the unified position of the Coalition premiers. I think it makes a lot of sense.
ABBOTT THE AUSTRALIAN 1 MAY 2012
Tony Abbott needs to explain why he thinks every South Australian should be $600 worse off, Senator Wong said.The way the GST is distributed ensures all Australians have access to comparable services no matter where they live.
Mr Abbotts proposed change would see South Australia's budget slashed so Coalition states get more money, Senator Wong said.
Member for Hindmarsh, Steve Georganas, says such a slash to South Australias budget would directly affect frontline health and education services.
Tony Abbott doesnt care about South Australian families, Mr Georganas said.
He would effectively take $2 out of every $9 that South Australia receives and give it to Ted Baillieu or Barry OFarrell, Mr Georganas said.
This would mean $600 less in the budget for every South Australian man, woman and child. Its not right.
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