Morrison issues GST warning
Federal Treasurer Scott Morrison has threatened state and territory governments with GST cuts if they continue to limit gas exploration.
He revealed that the Productivity Commission was looking at the various attitudes to gas exploration and development in its inquiry into the GST.
“I think it needs a fair dinkum look, the Productivity Commission is looking at whether the way states and territories operate is giving them a leave pass under the GST formula for not getting on and doing things,” said the Treasurer.
“When you have states that get on and do things, should they be penalised by getting less GST?”
Any changes to the GST in relation to gas development could affect the largest state economies such as Victoria, which has a moratorium on development and exploration, and New South Wales, who have placed restrictions on fracking.
The Federal Government is seeking to curb rising energy prices, and sees gas as the most viable energy source that is ready to be developed.