“The states get every dollar of GST now, and what’s happening is the states don’t want to be associated with the pain of raising taxes to pay for the increased expenditure in their areas of responsibility.’’ Mr Hockey said the government was not prepared to fund services on the “never-never’’.
“The best, most efficient way of delivering services is to know that the person that is delivering those services also has to raise the money to pay for it,’’ he said. Mr Hockey said the states would have to run the argument.
“We said that the only way there would be changes to the GST would be if we took it to an election,’’ the Treasurer said. “Now the states get every dollar, every single dollar, from the GST. It’s up to them to argue the case for changing the GST.”