Treasurer writes to Queensland counterpart to claw back $105 million in unpaid Covid debt

Queensland is still refusing to pay its $105 million hotel quarantine bill it owes NSW from the Covid-19 pandemic- enough money to employ some 200 nurses. Here’s the latest in the stalemate.

An interstate feud over more than $100 million in unpaid Covid debt has dramatically escalated, with Treasurer Daniel Mookhey writing to his Queensland counterpart asking him to “resolve” Queensland’s unpaid hotel quarantine bill.

The Sunshine State still owes NSW $105 million to cover the cost of its residents undertaking hotel quarantine in Sydney at the start of the pandemic.

However, Queensland has so-far refused to pay up. New Premier Steven Miles sensationally ripped up the bill owed in a 2021 social media stunt attacking then Prime Minister Scott Morrison.

The $105 million Queensland owes NSW taxpayers would be enough to employ some 200 much-needed nurses.

The money would be enough to by almost 2 million slabs of Tooheys New, or cover 2023 Blues captain James Tedesco’s salary for last season for 95 times over.

Treasurer Daniel Mookhey has written to Queensland Treasurer Cameron Dick seeking $105 million in unpaid bills. Picture: Richard Dobson

“I refer you to previous correspondence from NSW Treasury to Queensland Treasury regarding hotel quarantine fees for Queensland residents during the Covid-19 pandemic,” Mr Mookhey’s letter to Queensland Treasurer Cameron Dick said.

“The people of NSW are owed $105 million by the Queensland government to cover services provided to more than 18,000 residents of Queensland who stayed in NSW hotels,” the letter said.

The letter was sent on Thursday and obtained by The Daily Telegraph.

The bill dates back to the early days of Covid-19, when returning Australians could undertake two weeks of hotel quarantine for free. NSW shouldered the largest burden from hotel quarantine as the majority of Australians returning to Australia came through Sydney.

Queensland Premier Steven Miles ripped up the hotel quarantine bill in a 2021 social media stunt. Picture: Sky News Australia

In April 2020, Treasurers agreed that each state would cover the cost for their own residents even quarantined interstate.

The Victorian government in 2021 established a process to reimburse NSW some $86 million it cost to put returning Victorians through hotel quarantine, but Queensland – and Western Australia – have so-far refused to pay.

The Queensland government claims that no deal was ever signed.

Queensland Treasurer Cameron Dick. Picture: Evan Morgan

NSW Treasurer, Daniel Mookhey said the funds are needed to restore the budget. Picture: NCA NewsWire / Monique Harmer

Mr Mookhey told Mr Dick that NSW needs the money to fix our state’s budget.

“Significant economic headwinds and the withdrawal of considerable Commonwealth funding – a topic with which you can no doubt relate – has left the state’s finances in need of repair,” he said.

“I would appreciate you turning your attention to resolving this matter.”

State governments were supposed to reimburse each other for the cost of their residents quarantining interstate. Picture

Last year, Mr Mookhey said NSW would try to recoup the cost by deducting money we pay to Queensland.

That never went ahead because bureaucrats said it could not be done.

In 2021, Treasury officials advised that an “interstate reimbursement working group” had been established to recoup debts from hotel quarantine.

The group included treasurers from all states and territories except Queensland, WA, and the Northern Territory.

“Queensland never received an intergovernmental agreement to sign from Dominic Perrottet or the NSW Government with respect to hotel quarantine, so no agreement between the states exists,,” Mr Dick told the Telegraph.

“NSW is free to pursue additional funding through interstate GST arrangements."

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