‘Economically clueless' Jim Chalmers warns states on potential GST reform
Former NSW Labor treasurer Michael Costa discusses Treasurer Jim Chalmers' warning states on potential GST reform, labelling him as 'economically clueless'.
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Sky News AU
an hour 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.
West Australian
a day ago
- West Australian
WA voices left out of crucial economic and security cabinet committees
West Australians have been overlooked on two of Anthony Albanese's most important cabinet committees on the economy and national security, despite the State's key role in both areas. In a bureaucratic Brisbane line, there are no WA representatives in the Prime Minister's new make-up of the powerful expenditure review and national security cabinet committees. That's despite Western Australia's resources riches, critical minerals and Indian Ocean frontier being vital to the difficult issues the Albanese Government is confronting in its second term, including the energy transition and geostrategic uncertainties. Membership of the cabinet committees was made public last week. There have been minimal changes to the two bodies. Mr Albanese chairs the expenditure review committee with Treasurer Jim Chalmers as his deputy on the group that makes budget decisions. Deputy Prime Minister Richard Marles, Foreign Minister Penny Wong, Finance Minister Katy Gallagher, Health Minister Mark Butler and Infrastructure Minister Catherine King all keep their ERC positions. Employment and Workplace Relations Minister Amanda Rishworth has joined in place of Michelle Rowland, after the latter switched portfolios from communications to Attorney-General. Daniel Mulino is also a new face at the table after he took over as assistant treasurer following the political retirement of Stephen Jones. Mr Albanese and Mr Marles lead the national security committee. Its only new face this term is Ms Rowland, who replaces former attorney-general Mark Dreyfus. The NSC membership also includes Senator Wong, Dr Chalmers, Senator Gallagher, Home Affairs Minister Tony Burke, Energy Minister Chris Bowen and Defence Industry Minister Pat Conroy. Mr Albanese has repeatedly spoken of the importance of WA to Australia's economic and national security and is also acutely conscious of the State's contribution to his own political position. West Australian voters sent 11 Labor MPs to Canberra at the May election, out of 16 seats. 'The Albanese Labor Government is very proud of our increased WA representation at the election,' a spokesman for the Prime Minister said. 'That means more voices in Canberra speaking up for the great state of Western Australia. Importantly, that has seen greater representation in Cabinet, where decisions are made.' Anne Aly took on responsibility for small business, multicultural affairs and foreign aid after the election and joined Resources Minister Madeleine King in cabinet, doubling WA's representation. Shadow home affairs minister Andrew Hastie said it was 'ridiculous' that neither was on 'the two most important decision-making bodies' in the government. 'We should have someone on the ERC because we generate so much revenue for the country. And we should have someone on NSC because we are the home of AUKUS which cannot fail but is at risk at the moment,' he said. 'We need a bigger voice, and the Prime Minister is ignoring us.' Minerals Council of Australia chief executive Tania Constable said the resources portfolio was increasingly important in the nation's security discussions and that should be reflected at the highest echelons. 'Mining should be front and centre in government decision-making, with the resources minister included in the national security committee given the sector's vital role in strengthening economic resilience and supporting national security,' she said. She pointed to the sector's enormous logistics capability, supported by connected infrastructure and strategic assets. The head of Defence's national support division, Major-General Jason Walk, warned last week that China's stranglehold on critical minerals supply chains left Australia vulnerable and urged greater military cooperation with the resources sector to prepare for conflict. Scott Morrison came under fire in 2021 for not including Melissa Price, then the defence industry minister, in his national security committee, when the number of West Australians on the powerful grouping dropped from three to one. By the end of the Coalition's time in office, Michaelia Cash, then attorney-general, was the only WA representative on either cabinet committee, with none on the ERC. The Brisbane line was a WWII strategy — rejected by WA-based prime minister John Curtin — to prioritise defence of the heavily populated east coast areas south of Brisbane.
