A war of words has erupted over the carve-up of GST as one state condemns accusations it was awarded more to reimburse failed COVID-19 policies.

Queensland Treasurer David Janetzki accused his southern counterparts of receiving $800 million out of the Sunshine State’s GST share to reimburse “COVID-19 failures, five years after the fact”.

“The GST distribution should not compensate states for any economic or financial mismanagement,” he said in his maiden post-budget speech to a Committee for Economic Development of Australia event in Brisbane.

“In practice, this doesn’t always occur.”

Queensland’s revenue has been hit hard by a $2.3 billion reduction of GST revenue in 2025/26 and more than $5.3 billion over the following three years.

The share is 28 per cent higher than a decade ago but significantly lower than a 58 per cent jump for NSW, Victoria’s 118 per cent rise and Western Australia’s whopping 317 per cent.

“Queensland’s unprecedented GST reduction … has punched a hole in revenue forecasts,” Mr Janetzki said.

The state budget revealed a record $205 billion debt blackhole by 2028/29 and an $8 billion deficit in the next financial year.

Mr Janetzki also claimed Melbourne received twice as much funding for ferries as Brisbane, which was a reflection on the Commonwealth Grants Commission’s “fundamental misunderstanding” of transport infrastructure in a decentralised state.

“They effectively assume the cost of serving a resident in Ballarat, 113 kilometres from Melbourne, is the same as the cost of serving a resident in Mackay, 968 kilometres from Brisbane,” he said.

But Victorian Premier Jacinta Allan refuted Mr Janetzki’s claims, using choice words to condemn the Queensland treasurer’s allegations.

“Perhaps, let me put it in language in a way that the Queensland treasurer can understand – it’s just bullshit,” she said.

“Because when you look at the history of GST, Victoria has been a net contributor to the tune of $31 billion.

“And the Queensland budget’s blackhole, their $8 billion-plus black hole, has got nothing to do with the circumstances here in Victoria.”

Ms Allan said she does not want to quibble with another state over “nonsense” instead focusing on Victoria receiving its “fair share”.

But the quibble continued when Mr Janetzki rebuffed that “the facts speak for themselves”.

“The facts couldn’t be any clearer,” he told reporters.

“Canberra’s carver has sold Queensland down the river to keep Victoria afloat.”

It is not the first time a war of words has escalated over the GST carve-up after former Victorian Treasurer Tim Pallas called NSW Premier Chris Minns “mathematically challenged”.

“He might not be the sharpest tool in the shed but he is a tool,” Mr Pallas said last year.

It occurred over the 2024/25 distribution that saw NSW and Queensland’s share fall while Victoria received a boost.

Savannah Meacham
(Australian Associated Press)