- Queensland Productivity Commission finds Canberra's GST carve-up is punishing growth and costing Queenslanders billions.
- Queensland the only state to receive less GST in 2026-27 than three years ago.
- The Crisafulli Government calls on Federal Treasurer Jim Chalmers to overhaul system which is dudding his home State.
The Crisafulli Government's long-held concerns about Canberra's GST system have been confirmed, with an independent report revealing the broken system is stripping billions from the State, leaving less for schools, hospitals and infrastructure.
The Queensland Productivity Commission's final report confirms the GST system rewards states for restricting resource development, imposing real economic costs on powerhouses like Queensland.
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.
Treasurer David Janetzki said the findings showed the GST debate is about real services and real Queensland families and will be closely watching outcomes of tonight's Federal Budget.
"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."
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 per cent, Western Australia's is up 43.1 per cent, Northern Territory is up 28 per cent, Tasmania's is up 21.2 per cent Australian Capital Territory is up 17.4 per cent, South Australia is up 15.6 per cent and New South Wales' is up 6.4 per cent.
Queensland has made its submission to the Australian Productivity Commission's current inquiry, highlighting the GST system is stacked against Queensland while rewarding states that restrict or block development.
Over the past decade, Queensland's GST revenue has grown by just 37 per cent, compared with 63 per cent in New South Wales, 112 per cent in Victoria and 388 per cent in Western Australia, while national GST payments have increased by around 80 per cent.
The Queensland Productivity Commission's final report is available at www.treasury.qld.gov.au
