Federal MPs and senators fail to stand up for NSW to secure better GST deal

The Daily Telegraph contacted all 58 NSW federal MPs and Senators to ask if their home state should get more GST revenue from Canberra. Read their responses here.

Federal Labor MPs from NSW have been told not to stand up for their home state getting a bigger share of the GST — and the vast majority of NSW Coalition members remained silent on whether their state government deserves more.

Amid a deafening silence from NSW’s federal representatives on the issue, only six of 58 MPs and Senators were prepared to call for their state to be better off in the GST carve-up.

The Daily Telegraph can reveal that members of federal Labor’s NSW caucus were told not to respond to a series of questions — sent to all federal NSW MPs and Senators — asking if their state should get a better deal.

It comes after an unprecedented cut in NSW’s share of GST revenue for next year, leaving the state government $1.65bn worse off.

The Telegraph sent same set of questions (see below) to each federal NSW MP and all NSW Senators on Wednesday: whether NSW should be getting a higher proportion of GST revenue, whether the current scheme is fair, and whether GST revenue should be split solely on population size.

Prime Minister Anthony Albanese’s office referred The Daily Telegraph to comments made at a media conference last week. Picture: NCA NewsWire

Senior Coalition MPs — including Opposition Treasurer Angus Taylor — refused to go into bat for NSW.

Prime Minister Anthony Albanese’s office pointed to comments the PM made at Eastern Creek last week, where Mr Albanese said the GST carve-up was done “at arm’s length from the Government”.

Opposition Treasurer Angus Taylor’s office did not return calls. Picture: Martin Ollman

The few ministers who replied directed The Telegraph to those comments from the PM.

Other ministers failed to respond.

The Telegraph can reveal a government staffer raised the questions in a NSW caucus group chat on Wednesday, reminding MPs of Mr Albanese’s recent comments.

“I’m not suggesting you should respond,” he said in a message to MPs, sources said.

While Labor MPs were told not to respond, most Coalition MPs simply failed to answer.

Deputy Liberal Leader Sussan Ley refused to provide a response. Picture: NCA NewsWire

A spokesman for Deputy Opposition Leader Sussan Ley said she did not respond to “surveys”.

Mr Taylor’s office did not return calls.

Last week, the Hume MP backed in the GST deal, which is costing NSW billions of dollars in GST revenue in favour of WA.

Independent MPs from NSW emerged on Thursday as being among the few politicians willing to defend NSW getting a better deal.

Fowler MP Dai Le was one of few MPs who stood up for NSW getting a better deal on the GST. Picture: NCA NewsWire

Former Nationals MP turned independent Andrew Gee called the current GST carve-up a ‘complete farce’. Picture: AAP Image

Fowler MP Dai Le said NSW should “absolutely” be getting a larger proportion of the federal tax, describing the current distribution method as “unfair”.

“I agree that the largest population should have a larger share of the GST,” she said.

Former Nationals-turned-Independent MP for Calare Andrew Gee backed NSW getting more, blasting the current arrangement as a “complete farce”.

“This has to be one of the biggest snatch-and-grab heists in Australia’s history,” he said.

Energy Minister Chris Bowen directed The Telegraph to the PM’s former comments.

Employment Minister Tony Burke did not reply. Pictures: NCA NewsWire

Liberal Senators Maria Kovacic and Dave Sharma also said NSW should be getting a bigger slice of the GST pie.

Mr Sharma backed splitting GST revenue based on population size.

“States that run their finances better, and take the lion’s share of international immigration, should have this recognised, rather than being penalised for it,” he said.

New Liberal Senator Dave Sharma said NSW should not be penalised for taking the ‘lion’s share’ of migrants. Picture: Jonathan Ng

Liberal Maria Kovacic said last week’s GST distribution was ‘unacceptable, and indefensible’. Picture: NCA NewsWire

Independent Sophie Scamps said that the Premier should take up the case for a ‘fair share of the GST’. Picture: Justin Lloyd

Independent MP Kylea Tink backed NSW getting a fair distribution of GST. Picture: NCA NewsWire

Ms Kovacic said that NSW was “undoubtedly worse off” under the current model.

She said last week’s cut to NSW’s GST revenue was “unacceptable, and indefensible”.

Both Senators criticised Labor Premier Chris Minns for failing to secure NSW a better deal.

Teal MPs Sophie Scamps and Kylea Tink provided qualified responses but backed a “fair” distribution of the GST pie.

Assistant Minister Matt Thistlethwaite was the one Labor MP who actually addressed The Telegraph’s questions, reiterating that the GST carve-up was done “at arm’s length” from the government.

Greens senators David Shoebridge and Mehreen Faruqi both said GST revenue should be distributed “according to need,” rather than by political decisions.

Liberal MP Julian Leeser also addressed The Telegraph’s questions but remained noncommittal.

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