A split between the Commonwealth and NSW governments over GST revenues is threatening to derail a massive proposed rescue package for the Tomago aluminium smelter as economists warn that a series of multibillion-dollar taxpayer-funded bailouts for struggling manufacturing facilities lack a clear business case.
The Albanese government on Wednesday announced it would contribute half of a $2 billion subsidy package for Rio Tinto’s Boyne aluminium smelter in Central Queensland on the proviso that it backs more than $7 billion worth of new clean energy projects in the state.