The Queensland treasurer says it is up to the federal government, not the states, to campaign for any hike in the GST rate.
The Queensland treasurer says it’s the federal government’s job to make a case for any rise in the GST rate, and he won’t be pushing it.
State governments are unhappy that federal Treasurer Joe Hockey is shifting the burden of funding for schools and hospitals on to the states.
But Mr Hockey told the states that if they wanted more money from the GST to help cope with the new funding arrangements, “it’s up to them to argue the case to change the GST”.
He said his government won’t move on the 10 per cent GST rate without taking it to an election.
Queensland Treasurer Tim Nicholls says it’s the Abbott government’s job to make the case for any change to the GST.
“Any lead in relation to the changes in GST and the federal-state funding relationships must take place at the federal level,” he told reporters in Brisbane.
“They have the power to impose it.
“We are dealing with Queensland’s problems.
“And I think it is incumbent on the federal government to come to us with their proposals to deal with their problems.”
Mr Nicholls offered a veiled warning to the government about any bid to force the states to advocate for a hike in the GST.
“To simply reduce expenditure or reduce grants to the states to force an outcome isn’t something that is conducive to those good relationships,” he said.
But he added the Queensland government had a constructive relationship with the federal government.