Rise in GST share for Queensland

Queensland Treasurer and Minister for Trade and Investment, Curtis Pitt, has welcomed an increase in Queensland’s GST funding share following the release of the Commonwealth Grants Commission's 2017 Update Report at a meeting of federal, state, and territory Treasurers in Canberra today.

The Commonwealth Grants Commission has estimated Queensland’s GST share in 2017-18 to be $14.9 billion representing an increase of $889 million on the 2016-17 GST share. The Commission adjusted upwards the relativity applied to Queensland when allocating GST shares to 1.18 from the 1.17 applied to 2016-17.

“While some like Pauline Hanson would prefer to see a share of Queensland’s GST revenue going to other states, I’ve been pursuing the fair and equitable funding arrangements our communities deserve,” he said.

“Today’s decision by the Commonwealth Grants Commission is good news for all Queenslanders and welcome recognition of our efforts to both sustain and improve vital public services.

“But even the increased GST share won’t compensate Queensland families for the billions of dollars we have lost in cruel federal funding cuts to health and education.

"The outcome underlines the value of an independent Grants Commission rather than an ad hoc politically motivated process advocated by some in the lead-up to the WA election.

"Without consistent and responsible GST funding measures it becomes increasingly difficult if not impossible to adequately plan for the reliable delivery of services.

“Despite today’s good news there is a word of caution,” he said. “The national GST pool is likely to decrease in coming years and that’s something the Queensland Government will be actively monitoring."

Mr Pitt said it was disappointing that Federal Treasurer Scott Morrison was not receptive to Queensland's proposals to substitute a share of personal income tax to underpin service delivery instead of short term National Partnership Agreements.

"NPAs fund a range of essential health, education, and other services but states often receive little notice of any ongoing funding -- if any -- as the agreements expire.

"States and territories need greater certainty and a share of personal income tax allocated to states could replace NPAs and deliver that certainty.

"While the Federal Treasurer is cool on the idea, state and territory Treasurers agreed today to keep working on the concept and present our preferred model at our next meeting.

“I look forward to all states and territories Treasurers continuing to work together to present to the Commonwealth a better way to fund, plan and deliver services to benefit all Australians.”

While in Canberra today Mr Pitt also congratulated newly appointed West Australian Treasurer Ben Wyatt who took a seat for the first time at today’s meeting of the Council on Federal Financial Relations.

“This has been a truly historic meeting of the Council because it has been attended, for the first time, by Australia’s first ever Indigenous Treasurer.

“Western Australia and the Council are lucky to have a representative of the calibre of Mr Wyatt,” Mr Pitt said.

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