Union warning to Qld treasurer as state rules over share of GST

Unions representing Queensland frontline workers have warned the state government against using GST cuts to deny staff proper wages or to slash the state’s overwhelmed essential services.

Queensland Treasurer David Janetzki. Picture: Steve Pohlner

Unions representing Queensland frontline workers have warned the state government against using GST cuts to deny staff proper wages or to slash the state’s overwhelmed essential services.

It comes after Treasurer David Janetzki said frontline services and infrastructure projects would be at risk if the Albanese government lowered Queensland’s GST revenue by $2.3bn this financial year and $5bn by 2028.

The cuts, recommended by the Commonwealth Grants Commission, would see Victoria and NSW receive a larger share despite a national GST increase of $4.5bn.

Mr Janetzki said Queenslanders’ access to critical infrastructure and services would be put “at serious risk” if Federal Treasurer Jim Chalmers accepted the recommendation.

Australian Medical Association Queensland president Dr Nick Yim. Picture: Russell Shakespeare.

Shadow Treasurer Shannon Fentiman said that statement was “another LNP excuse for cuts”.

“This is at least the fourth time David Janetzki has sounded the economic alarm without actually telling Queenslanders what the Crisafulli government’s fiscal plan is,” she said.

Major unions have pushed back, demanding the state government protect already strained frontline services.

Australian Medical Association Queensland president Dr Nick Yim said the healthcare system was in crisis, with “no room for further cuts”.

“We are seriously concerned about any potential impact on our essential services,” he said.

“We call on all levels of government to mitigate any impact on health and take urgent action to prevent this dangerous trajectory.”

Queensland Police Union president Shane Prior said police officers, already overdue for a pay rise, should not be affected by the GST changes.

“Part of the responsibility of government is paying police and fellow public servants,” he said.

Police Union president Shane Prior says Queensland officers are already overdue for a payrise. Picture: Liam Kidston

“If the Premier wants to retain motivated, experienced police, he and the Treasurer need to put forward a pay offer that makes it attractive for officers to stay in Queensland.”

Queensland Teachers’ Union president Cresta Richardson said it was important GST did not negatively impact already underfunded schools.

“It’s no secret Queensland state schools have been let down by federal government funding over the last 13 years,” she said.

“As we await a new deal that could see record investment in public education, it’s important that any decision around the GST doesn’t negatively impact Queensland state schools.”

In his mid-year budget review, Mr Janetzki forecast a decline in Queensland’s GST revenue in 2025–26 due to methodology changes in the Commonwealth Grants Commission’s review.

Labor had forecast revenue at $18.6bn, but Mr Janetzki’s review cut it down to $17.9bn.

The Commission’s final calculation placed it even lower at $16.6bn in 2025.

Originally published as Union warning to Qld treasurer as state rules over share of GST