Queensland to take $241 million hit to GST revenue

Treasurer Andrew Fraser has confirmed Queensland will be hit by a $241 million downgrade in GST revenue, following the Federal Government’s Mid-Year Economic and Fiscal Outlook announced today.

Mr Fraser said the GST reduction will have an immediate impact on the budget bottom line.

“Queensland receives around 20% of the national GST revenue pool, which today was revised down by $1.36 billion by the Federal Government,” Mr Fraser said.

“Queensland will lose $241 million in projected GST revenue this financial year, which will have an immediate impact on the Queensland budget.

“This is one of the challenges we face in the lead-up to our own Mid-Year Review, which will be handed down in December.

“We know the Federal Government has revised its growth figures, and yesterday we saw the Reserve Bank make another substantial cut to the official cash rate.

“The size of the cut reflects the size of the problem.

“Queensland remains well placed to weather this financial crisis, however as I have repeatedly said, we are not immune.

“Today’s downward revision of GST revenue is evidence of this.

Mr Fraser also said Specific Purpose Payment funding is forecast to increase by $349 million, most of which relates to the funds for the First Home-Owners Grant boost which Queensland will administer on behalf of the Federal Government.

Media Contact: Treasurer’s Office 3224 6361 or 3224 5982