6 June 2005

GST to Thank for Queensland Budget Position

Queensland Treasurer, Terry Mackenroth, should thank the GST for the state's Budget position rather than boasting about "the best Budget ever delivered in Queensland's history".

Queensland will receive a total of $7374 million in 2004-05 from GST receipts. In 2005-06 it is estimated Queensland will receive $7721 million from the same source.

More importantly, this represents $798 million more than the state was expected to receive in 2004-05 and over $595 million in additional funds in 2005-06.

Mr Mackenroth's boasting the day before the Queensland State Budget is delivered is reliant on the GST, a tax which the Labor Party either opposed or wanted to rollback. It is now clear that the price of rollback would have been a significant cut to services for all Queenslanders.

The Queensland Government shouldn't spend too much time complaining about having to abolish taxes worth a mere $42 million in 2005-06 if it is going to benefit from a windfall gain of over $595 million in the same year from the GST. Mr Mackenroth should be explaining why he isn't willing to make further cuts to land tax and stamp duty as well as meeting the obligations to cut taxes promised before the GST was introduced.

Removing taxes on businesses and consumers would go a long way to encouraging business and employment growth.

This is the message that should emerge from the Queensland Budget, not a repetition of the old "blame game" where State Treasurers seem incapable of taking responsibility for their own decisions.