GST Overhaul Urged by Queensland Treasurer in Historic Address

Queensland Treasurer David Janetzki has called for a major overhaul of the GST system in a historic address to the National Press Club, warning that the current distribution threatens the fiscal stability of the federation.

The push comes on the back of the Productivity Commission's interim report, which recommended scrapping the federal government's deal with Western Australia - a suggestion that has since been ruled out by the Prime Minister.

In his address, Mr Janetzki said his battle is not with WA, but rather the "unfair GST distribution".

"We are not looking for a special deal, we're looking for a fair deal," he said.

Mr Janetzki has long campaigned for a better GST carve-up for Queensland, with a record $2.3 billion cut from Queensland's GST revenue forecast for 2025-26.

"The current system is a drag on productivity and a handbrake on economic development," he said.

Queensland is forecast to receive $19.6 billion in GST funding this financial year.

The Productivity Commission's interim report acknowledged that the GST carve-up formula is highly volatile to changes in mining revenue, which are highly concentrated in Western Australia and Queensland.

"I'm hoping logic, reason and facts persuade the federal government to amend, change and fix the GST system," Mr Janetzki said.

Mr Janetzki proposed a 25 per cent discount to assess mining revenue in his submission to the federal Productivity Commission.

"We believe this is a measured response to the efficiency, policy neutrality and volatility problems created when the GST system attempts to redistribute virtually every additional dollar of highly concentrated and volatile mining revenues," he said.

Queensland Opposition Leader Steven Miles criticised Mr Janetzki for not taking "responsibility for the situation we find ourselves in".

"We will always advocate for a better deal for Queensland, but we will also call upon this government to do what they were elected to do," he said.

A spokesperson for federal Treasurer Jim Chalmers said the Commonwealth was "providing tens of billions of dollars in new funding and GST revenue has been increasing".

Public consultation for the Productivity Commission review finishes today, with its report due to be handed down in December.