GST distribution Qld: Treasurer David Janetzki challenges for fair share

Treasurer David Janetzki says he will take action against a system that only serves to punish Queenslanders, leaving us short-changed by $5bn, while other states gain fund increases. VOTE IN OUR POLL

• Opinion: Premier must wield power

Treasurer David Janetzki will push for national GST reform, arguing the state’s $5bn revenue cut is proof of a fractured system that only serves to punish resource-rich Queensland.

Mr Janetzki said the new GST distribution system unfairly favoured other states at the expense of those such as Queensland, which he said shouldered the burden of powering the economy.

He has called for urgent reform of the distribution process, backed by the latest Productivity Commission review, also raising the issue at a recent Board of Treasurer’s meeting.

It comes as Queensland announces it will open nine gas fields in a bid to boost energy supply and increase revenue amid a tapering of mining royalties.

“The unprecedented redistribution of Queensland’s GST entitlement to other states shows how Australia’s fractured GST system demands reform,” Mr Janetzki said.

“This money belongs to Queenslanders and we should not be punished because of our support for industries that underpin our national wealth.

“The federal government must seize the opportunity arising from the impending Productivity Commission review to reform the system, and not just lock in a Western Australia sweetheart deal for political reasons.”

The state is set to receive $2.3bn less this financial year and $5bn by 2028 under a recommendation from the independent Commonwealth Grants Commission, despite every other state and territory receiving a GST funding increase.

Victoria, meanwhile, will receive an extra $3.94bn to $27.98bn while NSW has received an extra $1.29bn to $27.71bn.

Australian Institute for Progress executive director Graham Young said the state government, under Premier David Crisafulli, held a unique opportunity to rally other mining states and push for GST reform.

“The announcement that nine new gas fields will be opened up shows the government understands mining is the key,” he said.

“It needs to be rewarded for this, not penalised.

“In this latest (GST) carve-up Queensland money will go to help support Victoria, despite Victoria’s problems being all of its own making.

“Who knows, under a properly competitive system Victoria might drill for its own gas, instead of banning all onshore exploration and drilling, and whinging because Queensland’s gas industry sells large amounts of gas overseas.”

Victoria has sought federal support to underwrite liquefied natural gas imports to address gas shortages, by granting the Australian Energy Market Operator special powers to be the main buyer.

Mr Janetzki said Queensland should not be hamstrung by the “ideological” Victorian proposal.

“Queensland is doing the right things, and as a state, we shouldn’t be hamstrung because the Victorian Government places ideology above economics,” he said.

Originally published as GST distribution Qld: Treasurer David Janetzki challenges for fair share