Taylor: Lower spending not higher GST best way to fund tax reform
The Coalition has played down the prospect of supporting a higher GST to fund income tax cuts, as frontbencher Angus Taylor says the starting point for tax reform must be government spending.
Treasurer Jim Chalmers has pledged to lead an overhaul of Australia's tax system aimed at lowering the burden on workers while raising other taxes to help plug the federal budget deficit.
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Sky News AU
41 minutes ago
- Sky News AU
'Complete bulls***': War of words erupts between Victorian Premier and Queensland Treasurer over GST carve up
A war of words has erupted between two of Australia's largest states after Queensland Treasurer David Janetzki blamed the Victoria and New South Wales governments for the Queensland's $8.6 billion budget black hole. Mr Janetzki used a speech on Monday to claim Queenslanders are being forced to compensate Victoria and NSW for their 'policy failures' as a result of the latest carve-up of GST revenue, which will see the state deprived of $5.3 billion over the next three years. 'Queensland, with its own newly re-established Productivity Commission, is doing the heavy lifting on productivity; our gas is solving the southern states' energy crisis and our GST revenue is going to Victoria to keep their hospital lights on,' the LNP Treasurer said. Queensland's share of GST revenue and 'no worse off payments' is set to fall by $2.3 billion in 2025-26, while Victoria's share will increase by almost $4 billion. But Victoria Premier Jacinta Allan hit back at the Queensland Treasurer on Monday. 'Let me put it in language and in a way that the Queensland treasurer can understand. It's just bulls***,' Premier Allan told reporters. 'Because when you look at the history of the GST, Victoria has been a net contributor to the tune of $31 billion and the Queensland budget's black hole, their 8-billion-plus black hole, has got nothing to do with the circumstances here in Victoria.' The Commonwealth Grants Commision's calculations show the largest factor in their decision to recommend a drop in Queensland's GST revenues was a massive boost in the state's coal royalties. But Mr Janetzki took aim at other calculations used for the determination. 'We were stripped of $800m to reimburse New South Wales and Victoria for Covid-19 policy failures, five years after the fact,' the LNP Treasurer said. He also claimed Victoria had received 'twice as much funding for ferries as Brisbane' despite more than 4 million people using Brisbane's ferries and Melbourne only operating the barely-used Westgate Punt. But Premier Allan described this as 'nonsense'. 'What a load of nonsense. What a load of misinformed nonsense,' she said 'I think we've made an investment of something like $600,000 over two years into the Westgate Punt. This isn't the cause of Queensland's budget challenges - their $8.6 billion black hole. 'I think the Queensland treasurer would be better off focusing on the facts and focusing on what we need to all focus on as state governments, and that is working with the federal government, securing a fairer share of infrastructure funding, of GST allocation. 'These nonsensical pot shots across state borders are just that - complete nonsense.' The CGC's latest GST distribution shows Queensland will get back 85 cents for every $1 of GST revenue it contributes in 2025-26, down from 95 cents in 2024-25. This compares to Victoria's share, which is set to increase from 96 cents to just over $1 over the same period. However 2025-26 will be the first year Victoria has received back more GST revenue than it has contributed, whereas Queensland has received more revenue than it has contributed for 19 of the past 25 years.
Perth Now
an hour ago
- Perth Now
War of words over GST carve-up as states butt heads
A war of words has erupted over the carve-up of GST as one state condemns accusations it was awarded more to reimburse failed COVID-19 policies. Queensland Treasurer David Janetzki accused his southern counterparts of receiving $800 million out of the Sunshine State's GST share to reimburse "COVID-19 failures, five years after the fact". "The GST distribution should not compensate states for any economic or financial mismanagement," he said in his maiden post-budget speech to a Committee for Economic Development of Australia event in Brisbane. "In practice, this doesn't always occur." Queensland's revenue has been hit hard by a $2.3 billion reduction of GST revenue in 2025/26 and more than $5.3 billion over the following three years. The share is 28 per cent higher than a decade ago but significantly lower than a 58 per cent jump for NSW, Victoria's 118 per cent rise and Western Australia's whopping 317 per cent. "Queensland's unprecedented GST reduction ... has punched a hole in revenue forecasts," Mr Janetzki said. The state budget revealed a record $205 billion debt blackhole by 2028/29 and an $8 billion deficit in the next financial year. Mr Janetzki also claimed Melbourne received twice as much funding for ferries as Brisbane, which was a reflection on the Commonwealth Grants Commission's "fundamental misunderstanding" of transport infrastructure in a decentralised state. "They effectively assume the cost of serving a resident in Ballarat, 113 kilometres from Melbourne, is the same as the cost of serving a resident in Mackay, 968 kilometres from Brisbane," he said. But Victorian Premier Jacinta Allan refuted Mr Janetzki's claims, using choice words to condemn the Queensland treasurer's allegations. "Perhaps, let me put it in language in a way that the Queensland treasurer can understand - it's just bullshit," she said. "Because when you look at the history of GST, Victoria has been a net contributor to the tune of $31 billion. "And the Queensland budget's blackhole, their $8 billion-plus black hole, has got nothing to do with the circumstances here in Victoria." Ms Allan said she does not want to quibble with another state over "nonsense" instead focusing on Victoria receiving its "fair share". But the quibble continued when Mr Janetzki rebuffed that "the facts speak for themselves". "The facts couldn't be any clearer," he told reporters. "Canberra's carver has sold Queensland down the river to keep Victoria afloat." It is not the first time a war of words has escalated over the GST carve-up after former Victorian Treasurer Tim Pallas called NSW Premier Chris Minns "mathematically challenged". "He might not be the sharpest tool in the shed but he is a tool," Mr Pallas said last year. It occurred over the 2024/25 distribution that saw NSW and Queensland's share fall while Victoria received a boost.
Sky News AU
7 hours ago
- Sky News AU
Barnaby Joyce says ‘bipartisan concern' in US about PM meeting Trump
A Coalition heavyweight has called on Anthony Albanese to lock in a meeting with Donald Trump after two of the staunchest supporters of the US-Australia alliance urged the Prime Minister to visit Washington. Six months have passed since Mr Trump's inauguration and Mr Albanese is yet to secure an in-person meeting with the US President. Australian producers have been slugged with tariffs on most exports to the US, including duties of up to 50 per cent on steel and aluminium, and doubts loom large about the Trump administration's commitment to AUKUS. The Albanese government has also made Australia an outlier in the West on defence spending, refusing to budge after Washington's request to hike it to 3.5 per cent of GDP amid alarm bells over China's military build-up. Speaking to Australian media, Republican representative Michael McCaul and Democrat colleague Joe Courtney said Mr Albanese would benefit from a one-on-one with Mr Trump. 'For (Albanese) to come to the White House would be a great gesture on the Prime Minister's part, that I think would go over very well,' Mr McCaul told the Australian Financial Review. 'That would be very sound advice for him to do that.' Mr McCaul and Mr Courtney are co-chairs of a congressional working group on AUKUS, which the Trump administration is reviewing. Asked about the comments on Monday, Social Services Minister Tanya Plibersek said she was 'sure the Prime Minister's very much looking forward to' meeting Mr Trump. 'We're awaiting confirmation of a suitable time, and I'm sure when that confirmation comes through, the Prime Minister will be very happy to visit Washington,' she told Seven's Sunrise. 'He's had a number of calls with President Trump.' Ms Plibersek noted there had been numerous meetings at the ministerial level, including Foreign Minister Penny Wong's upcoming Quad summit in Washington. She also praised Australia's ambassador, Kevin Rudd. 'Ambassador Rudd … is the Energiser Bunny of diplomacy,' Ms Plibersek said. 'He will be meeting with all of the members of the congress and Senate and people close to Donald Trump. 'There's a lot of communication going on both ways, but it's not the sort of thing where you just pop in with a plate of scones, hoping someone's home.' But appearing opposite the senior minister, Nationals MP Barnaby Joyce took a different view. He said the approach was not good enough. 'Ambassador Rudd might be the Energiser Bunny, but he hasn't energised a meeting between President Trump and the Prime Minister of Australia,' Mr Joyce said. 'We've gotta do that. When two people either side of the political fence in the United States say 'you better get over here' – they've obviously got a genuine bipartisan concern.' He also blasted Mr Albanese for having 'four meetings with the leader of China but no meetings with the President of the United States'. Mr Albanese is finalising details for his state visit to China mid next month. It will be his fourth meeting with Xi Jinping since winning power in 2022. Asked at an early morning press conference if a meeting with Mr Trump was in the works, Mr Albanese replied: 'Yes.' Originally published as 'Genuine bipartisan concern' in US about when PM will meet Donald Trump, Barnaby Joyce says
