An independent report from the Queensland Productivity Commission has found the nation’s GST system is stripping billions from the state.
Treasurer David Janetzki said the findings of the Commission’s final report, released ahead of Tuesday night’s Federal Budget, showed the GST debate is “about real services and real Queensland families”.
“This isn’t abstract economics, this is about real impacts on Queenslanders,” Treasurer Janetzki said.
“Every dollar Queensland loses through an unfair GST system is a dollar that can’t be spent on health services, new classrooms or building infrastructure for our growing State.
“Queenslanders are generous people, but they’re entitled to ask why our hospitals, roads and schools should miss out while our industries bankroll the nation.
“The GST model should reward states that develop industry in the national interest, not discourage it.”
The Queensland Productivity Commission’s findings revealed:
- The GST system penalises states that develop resources in the national interest;
- States that restrict or block development are rewarded under the current carve‑up;
- Commonwealth funding for nationally significant projects, such as upgrades to the Bruce Highway, is clawed back through the GST;
- The 2018 GST reforms did not resolve underlying efficiency costs and introduced significant fiscal risks once the No Worse Off Guarantee expires.
Despite having the nation’s highest net interstate migration and rising demand for essential services, Queensland is the only jurisdiction allocated less GST in 2026–27 than it received three years earlier.
By contrast, Victoria’s GST allocation is up 46.9%, Western Australia’s is up 43.1%, Northern Territory is up 28%, Tasmania’s is up 21.2% Australian Capital Territory is up 17.4%, South Australia is up 15.6% and New South Wales’ is up 6.4%.
Queensland has made its submission to the Australian Productivity Commission’s current inquiry.
Over the past decade, Queensland’s GST revenue has grown by just 37%, compared with 63% in NSW, 112% in Victoria and 388% in Western Australia, while national GST payments have increased by around 80%.
The Queensland Productivity Commission’s final report is available at www.treasury.qld.gov.au.
