Qld makes good on threat to send back $50m in Brisbane Metro project cash in ‘unprecedented’ act

The Queensland Government has made good on a threat to send back $50 million in cash for a major 2032 Olympic Games infrastructure project, as the state’s relationship with the Commonwealth hits a concerning new low.

The Queensland Government has made good on a threat to send back $50m in cash for a major 2032 Olympic Games infrastructure project, as the state’s relationship with the Commonwealth hits a concerning new low.

A GST and funding stoushing between the state and federal governments hit its nadir on Friday, with Queensland sending back $50 million in funding meant for the Brisbane Metro project.

Federal Urban Infrastructure Minister Paul Fletcher said the move by the state to refuse funding for a key pillar of its winning 2032 Olympic Games infrastructure pitch was “unprecedented” and in breach of a jointly-signed agreement.

The $1.24 billion Brisbane Metro is a project spearheaded by the Brisbane City Council, with the Federal Government pitching in $300 million.

Constitutional rules mean the Commonwealth can’t give the council money directly, and must use the state as a middleman.

But the State Government has argued the Brisbane Metro funding should get a special GST carve-out so the state isn’t left worse off under complex allocation formulas.

Treasurer Cameron Dick earlier this week threatened to send the money back if it turned up in state coffers. His office confirmed the cash was received and refunded.

An artist’s impression of Brisbane Metro’s Griffith Station

“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,” Mr Dick said earlier this week.

This is not the first time the Queensland Government’s demands for a GST carve-out have put infrastructure projects at risk.

Negotiations over $195 million in federal funding for a crucial water pipeline in Townsville broke down last year, with the state government taking the extraordinary step of using its own money to pay for the project — an announcement it made close to the election.

There is now an escalating squabble between the state and federal government up north over a GST carve up for $100 million the Commonwealth wants to put toward a new concert hall

Mr Fletcher said the Queensland Government needed to “live up to its promises” and back the Brisbane Metro project.

“By refusing to pass on Commonwealth funding for the Brisbane Metro, the state is in breach of the National Partnerships Agreement on Land Transport Projects signed by the Premier Annastacia Palaszczuk in 2019, which clearly outlines the process for Commonwealth payments,” he said.

“Not only will the Brisbane Metro significantly enhance Brisbane’s transport network, it will play an important role in the successful delivery of the Olympics.”