Queensland Welcomes GST Increase

Queensland Welcomes GST Increase

Queensland Treasurer Curtis Pitt

Rise In GST Share For Queensland

Victor P Taffa

Queensland Treasurer and Minister for Trade and Investment, Curtis Pitt, have welcomed an increase in Queensland’s Goods and Services Tax (GST) funding share

This follows the release of the Commonwealth Grants Commission’s 2017 Update Report at a meeting of federal, state, and territory Treasurers in Canberra today.

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.

“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.” Treasurer Pitt said.

“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.” Treasurer Pitt said.

Treasurer 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 (NPA).

“NPA’s 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 NPA’s and deliver that certainty.” Treasurer Pitt said.

“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.” Treasurer Pitt said.