Brisbane Metro: GST argument may see Palaszczuk Government return federal cash

Brisbane’s Lord Mayor has taken a brutal swipe as a stoush between the Palaszczuk and Morrison governments over cash for the Brisbane Metro escalates.

A fed up Brisbane Lord Mayor Adrian Schrinner has delivered cutting bipartisan swipe as a row over GST threatens a major projects linked to the 2032 Olympic Games.

A stoush over GST and funding has escalated as the Palaszczuk Government threatens to send back any cash it receives for a major Brisbane transport project that was spruiked as part of the Olympics bid.

The Morrison Government is warning it will be “deeply concerning” if Queensland refuses to pass on the $50 million for the Brisbane Metro project and another $15 million for Townsville’s Royal Flying Doctor Service base, in what would be an unprecedented move.

Cr Schrinner said he had a very simple message to the state and federal governments.

“Sort yourselves out!” he posted on social media on Thursday morning.

“Just months ago, Brisbane Metro was part of the (Brisbane 2032) Olympics pitch endorsed by all three levels of (government).”

The cash is expected to land in the state’s bank account on Thursday, with a letter preceding it sent the previous day demanding it be passed on as usual.

But State Treasurer Cameron Dick said Queensland will lose money “for health and education” if it accepts the money for the Metro without a special GST carve out.

It is part of the stand-off between the State and Federal governments over these projects and the southeast Queensland city deal, with the state claiming it will lose money through complex GST allocation formulas.

Talks have seemingly broken down, with the Deputy Premier Steven Miles last week accusing the Commonwealth of no longer negotiating in good faith.

Urban Infrastructure Minister Paul Fletcher. Picture: Sam Mooy/Getty Images

The Commonwealth is unable to pay the Brisbane City Council or RFDS directly, under the constitution.

 Urban Infrastructure Minister Paul Fletcher said the GST claim is absurd and Queensland is treated same as any other state and is required constitutionally required to pass on the funding.

“For the Queensland Government to pick a fight with the Commonwealth over GST is absurd,” Mr Fletcher said.

“The allocation of GST revenue to the states and territories is well-established and equitable, with funding allocated at a level that allows each to provide a similar standard of public services to their people.

“The Queensland Government is well aware of this longstanding arrangement, and has no problem passing on Commonwealth funding to delivery partners for projects like the Gold Coast Light Rail and upgrades to the M1.”

But Mr Dick said if the funds for the Metro arrived, they would be returned.

“The Queensland Government has not agreed to receive funds for Brisbane Metro, and if we do receive these funds, it will cost Queenslanders in reduced funding from the Morrison Government for health and education,” he said.

In a letter previously sent to Mr Fletcher, Mr Dick said Queensland would lose up to 80 per cent of the value of the grant in GST funding and provided a list of projects in other states which received a special carve out.

Mr Dick did not comment on the RFDS funds, but in the letter said it could be funded through a Building Better Regions Fund grant.

Treasurer Cameron Dick. Picture: NCA NewsWire / John Gass

Lord Mayor Adrian Schrinner, previously commenting on the funding row, has said the Metro will be critical for moving people between events and venues and thanked the Federal Government for its support.

The Townsville RFDS base funding was announced in July for the project which will include a dedicated patient transfer facility, aviation and clinical training complex among, as well as a new hanger and other facilities.