The Queensland government is cautious about a proposed redesign of the GST model in almost two decades.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Productivity Commission recommended a $12.6 billion boost to NSW at the expense of Victoria and Queensland but Prime Minister Malcolm Turnbull rejected the plan, arguing no state or territory would be worse off under the government's reform.
Federal Treasurer Scott Morrison told ABC News no one would be worse off because it was about "making the pie bigger".
Under the formula, the federal government will ensure that by 2022, no state receives less than 70 cents per person per dollar of GST. It will need to provide short-term funding.
Premier Annastacia Palaszczuk said the government wanted to see the modelling and detail of exactly what the federal government was proposing.
"The modelling has not yet been provided to myself as Premier, to the Treasurer or to our Treasury officials and we do need to see that modelling as soon as possible," she said.
"It does seem to me to be highly ironic that all of a sudden there's a pie that gets bigger. Where is the money coming from?"
Ms Palaszczuk said she would not allow cuts to services.
"It appears that this is more of a magic pudding than it is a pie that continues to increase," she said.
"This is light on detail."
Ms Palaszczuk said she wanted an iron-clad guarantee that Queensland would not be worse off.
The federal government said the plan would deliver Queensland an extra $518 million by 2026-27.
"But we are not seeing the detailed modelling," Ms Palaszczuk said.
"Our Treasury officials are saying that we could lose up to $500 million a year."
Ms Palaszczuk asked whether there would be cuts to the national partnership agreement funding.
However, LNP leader Deb Frecklington welcomed the news.
"I have been talking directly to the Prime Minister for months, who understands that Queensland deserved a GST guarantee," she said.
"Reports that under the new GST arrangement Queensland will now receive more than $500 million in top-up payments is a win for our state and welcome news."
When asked how he could support the proposal so soon after it was announced, when the Premier said she was still waiting for the modelling, LNP Shadow Treasurer Tim Mander said he trusted the coalition's ability to manage the economy over Queensland Labor "any day".
"It's a bit rich coming from her when they've had a billion dollars in coal royalties that were unexpected, introduced five new taxes to bring in $2.2 billion and we still will have a debt of around $83 billion," Mr Mander said.
He questioned how Treasury analysis came to the conclusion Queensland could be $500 million worse off a year.
"I have no idea where the Premier would get those figures. Again I back the federal coalition's credibility with regards to managing the economy over Labor-nomics," he said.
State and territory treasurers will meet in September to discuss the plan, with a final agreement expected by the end of 2018.
- with AAP
