A dispute has erupted between two state governments over GST revenue, after Queensland’s treasurer claimed that his state was financially supporting Victoria’s healthcare system. Victorian Premier Jacinta Allan responded by stating that the claims were “just bullshit.”
During a speech in Brisbane, Queensland Treasurer David Janetzki claimed that changes in the allocation of tax revenues had disadvantaged Queensland by $5.3 billion over three years, the largest redistribution in the 25-year history of the GST.
Janetzki also highlighted that Queensland, with its newly re-established Productivity Commission, is “doing the heavy lifting on productivity,” with its gas industry helping to solve the energy crisis in southern states, and its GST revenue supporting Victoria’s hospital services.
Allan dismissed these complaints as “nonsense,” stating that Victoria has historically been a net contributor to GST revenue. She also criticized the Queensland budget’s financial situation, which faces a deficit of over $8 billion, partly due to the reduction in the state’s GST allocation and declining coal revenue.
Allan suggested that the comparison between the two states’ public transport networks is unfair, emphasizing the greater connectivity and public transport offerings in Melbourne compared to Brisbane.
Janetzki, who recently delivered his first budget, also argued that GST is being misallocated away from Queensland, partly due to the assessment that southern states have a “no or limited ability” to levy revenues from the gas industry. He called for either himself or Queensland Premier David Crisafulli to represent states at a productivity roundtable in August called by federal treasurer Jim Chalmers.
Source: https://www.theguardian.com/australia-news/2025/jun/30/jacinta-allan-rubbishes-claims-queensland-gst-revenue-is-keeping-victorias-hospital-lights-on
