GST report in line with State Budget update

Today’s relativities release from the Commonwealth confirms there will be no extra cash through GST for Queensland.

Treasurer Tim Nicholls said the Commonwealth Grants Commission (CGC) 2014 Update Report showed an increase which had been flagged last financial year for 2014-15 by the Commonwealth and already incorporated into the Budget through Queensland’s Mid-Year Fiscal and Economic Review.

“Today’s Commonwealth report means there will not be extra funds flowing into Queensland from the GST, and this is in line with what was anticipated last December,” Mr Nicholls said.

The report shows Queensland’s three year relativity will be 1.07876 in 2014-15.

“Queensland’s relativity is above one because of our expenditure needs together with a highly dispersed population, a higher Indigenous population and high population growth,” he said.

“Additionally, the natural disasters we’ve experienced in recent years has also increased our expenditure needs in comparison to other states.”

Mr Nicholls said it remained up to Queensland to pull itself out from under the black cloud of Labor’s $80 billion debt legacy.

"As a state government our options are limited when it comes to reshaping our finances to pay down debt,” he said.

"We can massively increase taxes and charges, we can reduce the services that the Government provides or we can look at selling or leasing some government-owned businesses and using the funds to pay down debt and pay for some of the infrastructure and services we need.

“All of us will need to make the choice about what we ultimately want for Queensland and what the priorities for investing in our future should be, as we address the debt and deficit in a disciplined and methodical way.”

Mr Nicholls said he was continuing to travel across the state to as many communities as possible in coming weeks, listening to Queenslander’s views on how best to pay down the Labor legacy of a $450,000 an hour interest bill to banks and overseas interests.

“We are engaging Queenslanders from all cities and regions, discussing and listening to what they have to say and I invite everyone to make sure they form part of the conversation.”

[Ends] 28 March 2014

Media contact: Treasurer’s office 3719 7200