Long-standing tensions between the federal and NSW governments are being exacerbated by calls by state treasurer Dominic Perrottet to broaden or increase the GST, according to Sky News Political Editor Andrew Clennell.
Mr Clennell said while the Prime Minister is keeping up good relations with Victoria, the same cannot be said for his Liberal counterparts in NSW.
“The tension between Scott Morrison on one side and Gladys Berejiklian and Dominic Perrottet on the other began in last March’s state election campaign when Morrison was avoided during the election campaign and not even given a speaking part at Berejiklian’s campaign launch,” Mr Clennell said.
“It flared up again during the bushfires, where Morrison was keen to get more involved in the emergency response after his Hawaiian holiday and Berejiklian and Shane Fitzsimmons argued with him over it.”
Mr Perrottet has been urging his federal colleagues to increase the GST, with the states in return abolishing ineffective taxes like stamp duty.
Mr Clennell said the Prime Minister has hit back at this suggestion today, telling Sky News the states should take the lead on tax reform.
“Scott Morrison today said, in answer to my question, it was up to the states to come up with a consensus around this and basically appearing to say you could change the GST but not trust the states to axe their state taxes. That it was up to the states to lead on tax reform,” he said.
“Doesn’t look like any GST changes will be happening anytime soon and, as governments seek to cut taxes, it will be a very long road to paying the debt back.”
Image: Getty
