State takes aim at commonwealth over GST 'stitch-up'

The federal government is facing criticism for transferring fiscal responsibilities to state and territory governments, as well as a controversial Goods and Services Tax (GST) distribution that could compromise Australia's federation. Queensland Treasurer David Janetzki addressed the issue at the inaugural National Press Club event in Brisbane, emphasizing that cost-shifting of long-held federal duties is problematic and must be addressed.

Some of these cost transfers are subtle, while others are more apparent, such as Queensland's $22 billion increase in expenses by the end of the 2030/31 financial year. The largest contributors to this cost shift are National Disability Insurance Scheme (NDIS) reforms, aged care placements in public hospitals, and a 50-50 state-national road funding split.

These decisions were not made by Queensland or any other state or territory government. Janetzki urged for a GST overhaul, stating that Queensland, unlike other states, is experiencing a decline in real terms over the past three years. He added that the current system hinders productivity and economic growth. Despite an 80% increase in GST revenue over the last decade, Queensland's share has only grown by 39%, compared to 66% for New South Wales, 116% for Victoria, and 397% for Western Australia.

Queensland, along with most other states, is seeking a fair deal to address these concerns. The Federal Productivity Commission is currently reviewing the GST, with submissions due and the final report expected in December.