GST wars: NSW pitches radical plan

NSW Premier Chris Minns has urged the federal government to abandon the long-held principle that richer states should prop up poorer ones, pushing for a radical overhaul that would carve up the GST on a per-person basis.

NSW Treasurer Daniel Mookhey will take Mr Minns’ proposal to a meeting with his state counterparts and Treasurer Jim Chalmers on Friday. “The easiest way of doing it is to distribute the funds per capita based on population size. Now, I know that there’ll be smaller states that top-up funds like South Australia, the Northern Territory and Tasmania, and the federal government’s got more than enough in grants to do just that,” he told Sky.

“Every year this happens … the calculations come out and people say it’s unfair, and that’s why what you don’t want, is political interference and a political decision based upon favourites,” he said. Victorian Premier Jacinta Allan said she was frustrated with the ongoing discussion about how the GST is collected and allocated.“Up until this year, Victoria has never, ever received back every dollar that it has contributed to the broader GST pool,” Ms Allan said.

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