Queensland robbed of billions in GST revenue
QUEENSLAND could be worse off by more than $3 billion by 2026 under proposed changes to the GST in a worst case scenario discussed by treasurers.
The state would receive $3.2 billion less in GST funds over eight years if Western Australia enjoyed another mining boom while east coast states slumped, according to modelling prepared by Victorian Treasury.
NSW would lose $5.5 billion and Victoria $4.6 billion under the scenario.
The modelling was used by the east coast states to justify their demands for Prime Minister Scott Morrison to guarantee no state would be worse off under his planned changes.
Mr Morrison wants to legislate a plan he struck when he was treasurer to impose a 75 cent floor to the GST carve up after WA's share fell to less than 30 cents.
The carve up takes account of each state's ability to raise its own revenue as well as its spending commitments to deliver a similar level of services across the country.
WA argues it has been ripped off for years because of the way the last mining boom was taken into account.
The Federal Government has proposed a $1 billion a year compensation package for the transition to the new system.
But Queensland and other states fear the change will lock in a benefit for WA that could see the rest of the country lose out in the future.
Queensland Treasurer Jackie Trad said the Victorian modelling showed the state needed a guarantee it would not be worse off.
"Scott Morrison and the LNP have said that Queensland will not be worse off under their GST proposals," she said.
"However modelling by the Victorian Government has shown that Queensland could stand to lose up to $3.2 billion by the year 2026-27 if Western Australia experiences another mining boom.
"That would mean less money for our local roads, schools and hospitals, less nurses, less teachers and less police."
Ms Trad said the Federal Government modelling was "narrow in scope and does not account for shifts in economic conditions".