THE Queensland government has no more excuses to cut services after gaining a windfall $700 million in the annual carve-up of the GST revenue pie, the federal government says.
However, the Gillard government faces another row with newly re-elected Western Australian Premier Colin Barnett as his state is the biggest loser in the recommended 2013/14 GST distribution announced on Friday, losing more that half a billion dollars.
An angry Mr Barnett said it was a "flashpoint" in state/federal relations.
Senior government minister Craig Emerson said the independent Commonwealth Grants Commission's latest assessment was a "great boost" to Queensland.
He said the state's premier Campbell Newman had now run out of excuses for his savage cuts to jobs and services.
"Mr Newman has $700 million more coming Queensland's way as a result of the GST distribution ... stop sacking nurses and other frontline service providers," Dr Emerson told reporters in Canberra.
Treasurer Wayne Swan said Mr Newman owes Queenslanders an explanation as to what he will use this money for, given his recent savage cuts to jobs and services.
In its annual recommendations to the federal government, the Commonwealth Grants Commission estimated GST revenue will total $51 billion in 2013/14, up from $48.25 billion in 2012/13.
It said the main changes in its distribution recommendations were for Queensland and WA, mainly reflecting contrasting developments in the mining industries.
Commission chairman Alan Henderson said WA mining production had continued to grow to the point where by 2011/12 it had the capacity to raise near $2200 per person in mining royalties, compared with about $450 per person for all states.
"This sustained growth and the associated impact on employment and wages elsewhere in the state gives it an unprecedented fiscal capacity," Mr Henderson said.
"Compared to last year, we conclude they need $549 million less GST revenue."
Dr Emerson said this was an independent assessment, which by convention the federal government accepted, but noted the reduction was about $100 million less than the WA government had forecast.
But Mr Barnett said what was particularly galling was that for the first time, a state's share had fallen below 50 cents in a dollar.
"That is the flashpoint in commonwealth/state relations," he told reporters in Perth.
"This deal is akin to chopping two arms and a leg off, but saying 'you've got another leg'."
Mr Henderson said coal prices in 2011/12 were much lower than in 2008/09 and that Queensland coal production was also somewhat lower.
"This, combined with a sluggish property market, has resulted in Queensland's overall fiscal capacity falling below the average and therefore it becoming a net beneficiary under the equalisation arrangements for the first year since 2007/08," he said.
"We have assessed that Queensland needs $696 million GST (more) than we assessed them as needing last year."
The commissioner also said new 2011 census data on the distribution of Indigenous people showed a smaller share of the cost of delivering indigenous services falls to the Northern Territory.
As a result, the NT's GST share has been reduced by $107 million.
The commission said changes for other states are small.
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