Labor pledges Queensland GST money won’t go to WA

FEDERAL Labor will today pledge Queenslanders will not have to sacrifice hundreds of millions of dollars in GST to prop-up an agitated WA. And they’ve challenged the Coalition to do the same.

Shadow Treasurer Chris Bowen says Labor will not take GST money off Queensland to fund WA. Picture: AAP/Mick Tsikas

FEDERAL Labor will today pledge Queenslanders will not have to sacrifice hundreds of millions of dollars in GST to prop-up an agitated Western Australia.

In a wide-ranging speech in Brisbane today, Chris Bowen will challenge Treasurer Scott Morrison to do the same before November 25, in a bid to thrust GST reform into the state election campaign.

It comes as the Commonwealth Grants Commission, which recommends how GST revenue is shared between states, confirmed Queensland could be a significant loser under the shake-up.

Queensland would have been stripped of about $700 million if the Productivity Commission’s preferred reform was in place last financial year.

And if the Turnbull Government moves to give more help to the smaller states, Queensland could be $3.6 billion worse off, the just released Commonwealth Grants Commission analysis shows.

Shadow Treasurer Chris Bowen says Labor will not take GST money off Queensland to fund WA. Picture: AAP/Mick Tsikas

The details are contained in a post-draft submission to the Productivity Commission, which was asked by Mr Morrison to review how the GST is shared between states. WA claims they are being ripped off.

Mr Bowen will tell the Queensland Media Club that Queenslanders will not be stung by a Labor Government.

“I am happy to say to you here in Brisbane as clearly as I would in Perth, we in Federal Labor believe Western Australia has a legitimate concern that their GST distribution has fallen to just 34 cents in the dollar.

“But I will also say just as clearly that taking money off Queensland or any other jurisdiction is not the answer.

“In fact, no less a person than the acting Prime Minister Julie Bishop this week called for other states, including Queensland, to lose money in a change to GST distribution.

“This would mean fewer roads built and less hospital beds for Queenslanders.

“If it’s good enough for the Shorten Opposition to declare a definitive position on the GST distribution before the people of Queensland vote, surely it’s good enough for the Turnbull Government to do so as well.

“I suspect Queenslanders won’t see much of the Prime Minister and Treasurer during this election campaign.

“But on what rare visits you do get, Queenslanders should demand that the Federal Government rule out GST formula changes which would make Queenslanders worse off.”

Originally published as Labor pledges Queensland GST money won’t go to WA