NSW Treasurer Daniel Mookhey hits up new Qld Treasurer for $105m hotel bill

The Minns government is refusing to write off a $105m hotel quarantine bill it says it is owed by Queensland. The Queensland Treasurer’s response has been blunt.

A new State of Origin-style row has erupted between NSW and Queensland, with the northern state refusing to fix up an unpaid $105m hotel bill.

Treasurer Daniel Mookhey last week demanded his Queensland counterpart pay the millions the state owes for its residents staying in NSW hotels during the Covid pandemic.

Despite the former Queensland government knocking back his request to pay up multiple times, Mr Mookhey had hoped Treasurer David Janetzki – who took on the job after the Liberal National Party’s win in 2024 – would stump up in time for the June budget.

However, Mr Janetzki has pointed to the millions of extra dollars NSW will receive in the latest GST carve-up ... while declaring Queensland will not be paying any extra cash.

The bill was accrued after hundreds of thousands of people were forced to stay in hotels for weeks at a time during the pandemic as authorities tried to slow the spread of Covid.

Queensland Treasurer David Janetzki. Picture: Dan Peled

NSW Treasurer Daniel Mookhey. Picture: Nikki Short

NSW hosted the majority of returning passengers undertaking mandatory two-week hotel quarantine before they returned to their respective states.

While individuals were responsible for paying their own fees from July 2020, prior to this the government paid with the agreement that the traveller’s destination state would fix up the bill. Victoria, South Australia, the ACT and Tasmania have all paid, but Queensland is yet to cough up for the accommodation provided to more than 180,000 of its residents.

Mr Mookhey last week fired off a letter to Mr Janetzki asking for payment.

“Those were challenging times for all Australians, where co-operation between states shared the cost of the pandemic and saved many lives,” he wrote.

“In the spirit of that co-operation, I am seeking the opportunity to discuss with you the terms by which Queensland can settle its debt.”

Mr Mookhey noted the previous Coalition state government had written off Queensland’s debt but told The Saturday Telegraph: “We expect Queensland to pay its bill, in full.”

But in response to questions from The Daily Telegraph, Mr Janetzki said NSW would not be getting its cash.

He also said Mr Mookhey had “on a number of occasions” indicated that he would seek to recoup hotel quarantine costs through the GST carve-up process.

It is understood Queensland will get a $2.4bn drop in GST revenue in 2025-26, while the share going to Victoria and NSW will rise by $4bn and $1.3bn, which includes hundreds of millions for Covid expenses.

“Queensland considers the matter finalised, and we will not be picking up NSW’s tab,” Mr Janetzki said.

Queensland’s Minister for Small and Family Business Steven Minnikin doubled down on the government’s decision to refuse to fix up the unpaid hotel quarantine bill.

Speaking on Saturday, he said the treasurer had made it “pretty clear” that as far as the government were concerned, the matter was “well and truly closed”.

“But we also note that NSW have done pretty well recently with the most recent GST carve-up, but in terms of any Covid payment bills, there will be none. That matter is officially closed,” Mr Minnikin said.

“They can ask for the money. But from our perspective, the matter is over.

“And I do note that NSW have done pretty well recently with the GST carve-up federally.”

Do you have a story for The Daily Telegraph? Message 0481 056 618 or email [e-mail]

Originally published as NSW Treasurer Daniel Mookhey hits up new Qld Treasurer for $105m hotel bill