Premier Chris Minns accuses Prime Minister Anthony Albanese of “deliberately” dudding NSW with GST cuts

Premier Chris Minns has sensationally demanded Prime Minister Anthony Albanese explain why NSW is being dudded on GST and other Commonwealth payments.

Premier Chris Minns has waged war on the Albanese government, suggesting the Prime Minister is deliberately dudding his home state after unprecedented cuts to our GST share.

Mr Minns demanded Mr Albanese explain why NSW keeps losing out when it comes to spending from the Commonwealth.

“The taxpayers of NSW need to understand why we’re currently in a situation where so much money has been withdrawn from Australia’s largest state and instead sent down to Victoria,” Mr Minns said.

“We can’t just sleepwalk into a situation where, whether it’s GST payments, health agreements, infrastructure spend, or the intricacies of NDIS reform, where NSW taxpayers, despite representing nearly a third of the country gets so much less of Commonwealth payments, that situation has to change,” Mr Minns said.

The comments come after unprecedented cuts to NSW’s GST share which will see the state government $1.65 billion worse off next financial year and up to $10 billion worse off over four years.

NSW Premier Chris Minns has waged war with the federal government over GST payments: Picture: NCA NewsWire

“I just want to make this really simple request of the Prime Minister and the Treasurer: Is this accidental? Or is it deliberate?” Mr Minns said.

The reduction – the largest single cut since the tax was introduced – has all but killed off hopes of NSW returning to surplus.

“This decision makes it virtually impossible for New South Wales to return to surplus, it will take a miracle,” Treasurer Daniel Mookhey said.

A furious Mr Mookhey said the decision will “rob” NSW to “bail out” other states.

NSW Treasurer Daniel Mookhey has blasted the Commonwealth Grants Commission. Picture: Christian Gilles

The $1.65b NSW will be short-changed next year is enough money to pay for 3,000 healthcare workers.

“The Commonwealth Grants Commission would like us to increase property taxes despite NSW being the epicentre of a national housing crisis,” he said.

Asked whether he would make up the money by raising taxes or cutting services, Mr Mookhey said: “Neither”.

“We’re not going to be engaging in any sudden jerk movements in response to this decision,” he said.

Mr Mookhey said he agreed with former Premier and Treasurer Dominic Perrottet in criticising the GST distribution method.

The $1.56b NSW will lose could pay the wages of 3,000 healthcare workers.

“I agree with former treasurer Perrottet when he railed in 2018 against the ‘black magic GST distribution formula’ which was ‘seeing the hardworking taxpayers of NSW being ripped off by a perverse and unfair distribution model’,” he said.

State Treasury officials on Tuesday described the difference between the amount NSW expected to receive and what we are now forecast to get as a “sea of depression”.

The 2024-2025 GST carve up by the Commonwealth Grants Commission argued that NSW had an above-average ability to raise revenues through its own taxes and a below-average cost of providing services — warranting the reduction in GST per person.

: Federal Treasurer Jim Chalmers holds a press conference at Parliament House in Canberra. Picture: Martin Ollman

Finance Minister Courtney Houssos said the Minns government would continue to be “prudent” over its expenses in light of the latest budget pressure.

“We have been honest with the people of NSW about the challenges our budget is facing since we were first sworn in,” she said.

“We will maintain our fiscally prudent approach, focused on rebuilding our State’s essential public services.”

Queensland also fared poorly, losing $469m of its total revenue.

Victoria has come out on top, with the state’s total revenue share jumping up to $23.5bn in 2024-2025 from $18.8bn in 2023-2024.

The Commission argued that NSW was able to raise more coal royalties and had an above average growth in taxable land values.

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