Queensland Treasurer David Janetzki takes swipe at states over GST

Queensland’s Treasurer David Janetzki has taken a swipe at the rest of the country, particularly Victoria, for relying on the state’s coal royalties to underpin their budgets.

Queensland Treasurer David Janetzki. Picture: John Gass/NewsWire

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Queensland Treasurer David Janetzki has taken a swipe at the rest of the country, particularly Vic­toria, for relying on the state’s coal royalties to underpin their ­budgets.

The state’s share of the national $95.2bn GST was slashed by $2.4bn in March after Queensland’s coffers were bolstered by revenues from the resources industry generated by the coal royalty super-tax. 

In parliament on Wednesday, Mr Janetzki said the state’s investment in the sector would now serve to help Victoria “pay for their lengthy lockdowns and policy failures”.

“The impact of these redistributions is a reflection of our ­nation’s fractured GST-sharing methodology,” Mr Janetzki said.

“While Queensland’s strong resources sector has been encouraged, other states have let theirs languish, or even discouraged them.

“We should not be punished because of our support for industries that underpin our national wealth.”

The reduction in GST will put pressure on Mr Janetzki to reduce the state’s $128bn debt burden when he delivers the Liberal National government’s first budget on June 24.

Coal royalties were one of the core reasons why the independent Commonwealth Grants Commission recommended Queens­land’s slice of the GST pie next year be reduced, a year after the state’s share was cut by $1bn.

Queensland and NSW have raised concerns after it was revealed that other jurisdictions would subsidise Victoria’s share for the first time.

Victoria will receive the largest GST share of any state or territory over the 2025-26 financial year, with funding to rise $3.9bn to $26.15bn. The decision was made prior to the state’s May budget, which revealed net debt was set to expand to a record $194bn by 2028-29.

In contrast, Queensland will receive $16.6bn from GST over the upcoming finical year.

Mr Janetzki wrote to Jim Chalmers in May, requesting a review of Queensland’s allocation and raising concern the reduction could compromise the state’s ability to deliver services.

The federal Treasurer is yet to respond.

In response to previous criticism by the Crisafulli government, Dr Chalmers said the state had done “really well” from the Albanese government, citing its $7.2bn commitment to restoring the Bruce Highway.

The GST drop was predicted in 2022, leading to then-Queensland Labor treasurer Cameron Dick setting aside $2.5bn to buffer against the changes.

The rainy day fund was re­allocated to renewables projects prior to last year’s state election.

The CGC’s body’s complex calculation formula examines a state or territory’s ability to generate income versus spending needs over an average of three years.

The methodology was complicated further this year by a change that differentiated coal royalties based on type, placing a higher weighting on the high-quality metallurgical, or steelmaking, product, which is largely produced in Queensland.

The Crisafulli government has committed to nine new gas tenements in western and central Queensland.