News

Swan puts heat on Newman over GST 'windfall'

Federal Treasurer Wayne Swan wants Premier Campbell Newman to explain how he intends to use the extra $700 million in GST revenue.
Federal Treasurer Wayne Swan wants Premier Campbell Newman to explain how he intends to use the extra $700 million in GST revenue. Kari Bourne

A SLOWDOWN in mining and a weak property market means Queensland will need $700 million more in GST revenue than initially forecast.

The Commonwealth Grants Commission, which assesses how GST is carved up among the states, recommended Queensland's share of GST largesse be increased by 1.6% to 21.5% in 2013/14.

Queensland will receive almost $11 billion in total, an increase of more than $1.3 billion, or 14%, on the previous year.

Dwindling coal mining revenue had reduced Queensland's fiscal capacity by more than $450 million alone since 2008/09, the CGC report released late on Friday found.

A sharp fall in stamp duty caused by a sluggish property market also hit the state's coffers.

"We have assessed that Queensland needs $696 million more GST than we assessed them as needing last year," the CGC report reads.

It is the first time since 2007/08 Queensland has required GST money above its population share.

Federal Treasurer Wayne Swan pounced on the news, demanding Premier Campbell Newman explain how he intended to use the GST windfall.

He called on the Newman government to reinstate the health and education services cut in last year's budget.

"At a time when many Queenslanders are feeling the impact of the Newman LNP government's savage cuts to jobs and frontline services, Premier Newman must do the right thing and put this money back into frontline health and education services he has cut," Mr Swan said.

"I think Mr Newman owes Queenslanders an explanation as to what he will use this money for given his recent savage cuts to jobs and services."

Queensland Treasurer Tim Nicholls said the increase should not be characterised as a "windfall", claiming the numbers in the CGC report had been factored into last year's Queensland budget.

And he said calls to wind back the austerity measures - which he described as "fiscal repair" - contained in that budget were "utterly ridiculous".

"No new funds are available, and, in fact, the Federal Government is clawing back health payments to the tune of $103 million," Mr Nicholls said.

"While we know Queensland's share of GST will rise from 19.9% to 21.5%, we still don't know how much we will actually receive because Federal Treasurer Wayne Swan is refusing to reveal the total size of the GST pool."

Meanwhile, it was a different story for Western Australia - the only state whose GST revenue will take a hit in 2013-14.

The CGC found WA would need $550 million less than forecast last year, which means the state's total GST revenue will be fall by almost $400 million, or 13.2%, year-on-year.

WA's share of the GST pie will fall a full point to 4.9%.

CGC chairman Alan Henderson said one word explained WA's need for less GST cash - mining.

"Western Australia's mining production continued to grow to the point where, by 2011-12, it had the capacity to raise nearly $2200 per person in mining royalties compared with about $450 per person for all states," Mr Henderson said.

"This sustained growth and the associated impact on employment and wages elsewhere in the State gives it an unprecedented fiscal capacity."

The changes in GST distribution were only small for other states and territories.

CGC recommendations are designed to allow all states to provide the same standard of services, provided they make the same effort to raise revenue. .

Topics:  campbell newman gst tim nicholls wayne swan



Brisbane's arts and culture events centre stage

A CITY drenched in culture, Brisbane is again flaunting an arts and culture events calendar fit for a queen.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Insider’s guide to the best rooftop bars

Eleven Rooftop Bar is one to put on your hit list.

SEE the world from a different perspective...

Where to get your hands on the best wings

Try out these bad boys at Buffalo Bar.

IS THERE anything better than a wicked bowl of chicken wings? Nope.

Three trapped after truck t-bones car

Police question two passengers after a dangerous traffic crash on Tin Can Bay Rd this afternoon.

Astonishingly, no major injuries reported

Woodchop results from the Gympie Show

Tom Willis.

Did you or someone you know enter the Gympie Show?

Newton back for humorous go in Kevin07

RETURN: Andrew Newton is returning perform with the Zodiac Players in their new show.

Zodiac Players take on Kevin07

Local Partners

Book review: Mia Freedman's book meets her critics head on

IF AUSTRALIA does have a tall poppy syndrome, Mia Freedman has most certainly been a victim.

Rooftop cocktails and canapes in Gympie

Jamie Cook, of the Gympie Bone Museum Project, holding fully cleaned young male and female sheep heads.

Ticket selling fast for rooftop cocktails and canapes

Model Bella Hadid's see-through dress shocks in Cannes

US model Bella Hadid attends the Cinema Against AIDS amfAR gala 2017 held at the Hotel du Cap, Eden Roc in Cap d'Antibes, France, 25 May 2017.

It’s like she’s become addicted to shock value.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Open for inspection homes May 25-31

Check out this weekend's homes open for inspection

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

Ready to SELL your property?

Post Your Ad Here!