The NSW Treasurer Dominic Perrottet has welcomed the Commonwealth Government’s commitment that NSW residents will not be worse off under proposed changes to the GST.
Mr Perrottet said NSW was examining the impact of the proposed change to the GST carve-up, and would work constructively to get the best outcome for the state.
“We welcome the Commonwealth Government’s assurances NSW will not be worse off, and look forward to working with them to ensure we get the best deal for the residents of NSW,” Mr Perrottet said.
“The Productivity Commission’s preferred approach is a vindication of NSW’s argument to change the GST system to encourage reform.”
Mr Perrottet said NSW Treasury would now closely examine the numbers.
“NSW Treasury is in the process of working through the proposal to see how the proposed redistribution model changes our bottom line,” he said.
“As Australia’s biggest economy we have always supported a system which helps smaller states such as Tasmania and the Northern Territory, but we can’t be worse off at the expense of large states.”
Mr Perrottet said any new GST model should not penalise states such as NSW that had driven economic reform.
“The residents of NSW have done the heavy lifting for a long time and we can’t continue to subsidise a state like Queensland,” Mr Perrottet said.
“For too long the unofficial motto of Queensland has been ‘beautiful one day, subsidised by NSW the next’. The people of Queensland would be embarrassed to know their schools, roads and hospitals are being paid for by NSW taxpayers.”
“It’s time for the Queensland Government to act in the national interest and be lifters not leaners.”