QUEENSLAND’S budget will take a significant hit next financial year, after it was revealed the sunshine state will lose $400 million from the GST revenue it receives.
The state was the biggest loser in the latest GST breakdown, under changes to the distribution announced by Treasurer Scott Morrison on Thursday.
Queensland’s return from every dollar raised in the state and sent to Canberra will decrease from $1.18 to $1.09.
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The move will inject more cash into other states, with Victoria gaining the biggest boost to their share of the $65.8 billion GST carve-up.
The southern state is set to receive an extra $1.8 billion in GST revenue for the 2018-19 financial year, with its share increasing from 93 cents to 98 cents in the dollar due to strong population growth.
Queensland Treasurer Jackie Trad told Sky News the news was a significant cut to the state budget.
“Clearly it’s disappointing, but these are the outcomes set by the independent arbiter and we know what the rules are,” Ms Trad said.
“Sometimes Queensland gets an increase in GST and sometimes we are a donor state to other states.
“What I am more concerned about is in fact the Turnbull government’s desire to change the rules.”
LNP Shadow Treasurer Tim Mander blamed the the Palaszczuk Government for “failing dismally to stand up for Queensland and ensure our state gets its fair share of GST funding”.
Mr Mander said yesterday’s news that Queensland would receive less in the interstate carve up of GST revenue showed how “inept and ineffective Labor is in managing the state’s budget”.
“Queensland should not be penalised because we suffer frequent natural disasters and develop our natural resources,” Mr Mander said.
“Annastacia Palaszczuk has failed to properly argue the case for Queensland.
“The Palaszczuk Government put in the smallest submission of any state to the Productivity Commission’s review of GST distribution.
“Labor’s submission on the draft Productivity Commission report only mentioned royalties once and didn’t mention disaster payments at all – yet these are billion dollar issues for Queenslanders.”