As the NSW government takes on the Commonwealth over GST, Premier Chris Minns says per-capita distribution of the tax would see an extra $3.6 billion dollars flow into the state.
The Minns government will take a leaf out of former West Australian premier Mark McGowan’s playbook and begin a full-scale campaign for changes to GST distribution unless Prime Minister Anthony Albanese addresses NSW’s growing list of grievances with the Commonwealth.
The blow-up this week has sparked the most substantial rift between the Labor governments after they butted heads on the Commonwealth government’s cuts to infrastructure funding in NSW and an as-yet unresolved dispute over education funding.Both Minns and NSW Treasurer Daniel Mookhey on Thursday called for a complete overhaul of the way GST revenue is divided between states, labelling the system broken and arguing for a per-capita model, which they estimate would funnel an additional $3.
These complaints were given short-shrift by the prime minister on Thursday. Speaking in Sydney, Albanese insisted the agency responsible for calculating GST contributions — the Commonwealth Grants Commissions — was independent of government and he took a swipe at Mookhey after he said the system was broken.“I recognise the NSW treasurer is new to his job – but the system has been there for a very long time,” Albanese said. “We have not changed the system.
The deal, designed by then-treasurer Scott Morrison, came after WA mounted a concerted campaign to arrest the falling share of GST revenue it had received on the back of the iron ore boom.
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