May 26, 2016

Should we all move to Tassie?

The Tasmanian budget will be delivered today. Although it might have some good news in the short term, in the long term the Apple Isle's prospects don't look good.

Jason Murphy — Journalist and economist

Jason Murphy

Journalist and economist

Here’s what $750 a week in rent will fetch in Hobart:


An ornate, beautifully furnished three-bedroom home in central Hobart. And here’s what the same sum fetches in Melbourne’s CBD:


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7 thoughts on “Should we all move to Tassie?

  1. Nereus

    Lift your game Jason. Yes, Tasmania benefits from a much higher than equal share of the GST for the reason that its population of 2.2 per cent is not equal in societal characteristics to the average of the rest of Australia. It is older, less healthy, less educated and with an economic base that does not offer even the average opportunity for revenue collection from business and households. Not unlike some of the western suburbs of Sydney and Melbourne, the northern suburbs of Adelaide, or the hinterland of Queensland and Western Australia. You can find 2.2 per cent of Australia’s population in all of those areas, all justifiably in need of greater government support for transfer payments, infrastructure and services, but they are not States and so you do not see those statistics, either for expenditure or revenue. Just as you do not see the government expenditure and revenue statistics for the eastern suburbs of Sydney and Melbourne, or the beachside suburbs of Perth. Those who wish to argue for reducing the current GST distribution formula would do better to demonstrate – if they can – that Tasmania’s 2.2% gets a better deal than the next 2.2% exhibiting the same societal and economic characteristics. They do, of course, but not through the GST. The various Tasmanian Freight Equalisation schemes cannot be justified on economic or equity grounds, though I do not know if the Commonwealth Grants Commission also takes those payments into account – they certainly should. On the other hand Tasmania has benefits that quite surpass those of other States in my view, especially for retirees. I’m headed south.

  2. Norman Hanscombe

    Tasmania has long had more of its fair share of mainlanders taking over the Tasmanian (sic) Wilderness Society, safe seats in Parliament, well paid undemanding jobs in various bureaucracies, etc., then going on to ensure similar lifestyles for their extended families.
    Hasn’t Tassie already suffered too much?
    Please don’t delay this Post too long Mr Censor, if we’re to try to help the Island State.

  3. mikeb

    “Cities are where growth industries — mostly services — like to locate. But Tasmania doesn’t have a clear choice that would help it at least concentrate its resources.”
    Comparing Launceston to Hobart is like comparing Geelong to Melbourne (no offense to Geelong intended), but with better roads due to pork-barrelling politicians in a marginal electorate.

  4. bushby jane

    There is not any federal govt employment to speak of in Tasmania, nor any defence presence at all. We have boat building companies that tendered for recent defence contracts, to no avail because other states needed them more politically. Roundabouts and swings I say.

    1. Matt Hardin

      What about the Defence Food and Nutrition Research Centre in Scottsdale?

  5. AR

    Surely the best thing would be for the million plus Greens voters to all move to the Merkin Isle, leave the mainland to the climate deniers and neoliberal nutjobs.
    They could then ensure that it does not go down the GM route and become an exemplar for sustainable small scale life.
    Oh, and secede.

  6. Charlie Chaplin

    If the Tasmanian government delivers a Surplus the people should rebel. A depressed economy needs fiscal stimulus, not cuts!

    No wonder Tassie is declining at the rate of knots if they have idiotic politcians chasing bloody Surpluses!

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