A bitter political feud over how the GST is carved-up has escalated, with a Labor politician launching an extraordinary attack on one of the party's own state leaders.
Victorian Treasurer Tim Pallas told reporters on Friday New South Wales Premier Chris Minns was a "tool" who was ill-informed and was "mathematically challenged".
Mr Pallas expanded on his explosive personal statements by declaring NSW was "dripping with entitlement", and calling Sydney "that smaller city... on a harbour".
He made the remarks ahead of a national treasurers meeting, with GST distribution a hot topic among the states all week after new allocations were revealed.
The Commonwealth Grants Commission said NSW would receive $310 million less in 2024–25 compared to the previous year, while Victoria would get $3.6 billion more.
Mr Pallas said Mr Minns - who this week described Victoria as "a welfare state" - simply did not understand how the GST system works.
"Today we've basically heard from the NSW Premier, the mathematically challenged NSW Premier might I say," the Victorian Treasurer said.
"He might not be the sharpest tool in the shed but he is a tool. He has totally got the GST break-up wrong."
Mr Pallas then explained to reporters that he wanted to "take you through the math as opposed to the rhetoric of dripping entitlement that's come out of that smaller city to the north on a harbour".
"Firstly the GST system with the Western Australia floor price generated $89.4 billion. Victoria receives $22.2 billion of those dollars," he said.
"That is 96.5 per cent of our share as a proportion of our population. To put that simply, Victorians are paying more in GST than they're receiving.
"The altered no worse off guarantee process… generates $94.6 billion and Victoria gets $23.7 billion, or 97.4 per cent of our payments to the GST. Put simply we're getting less than 100 per cent in GST returns.
"We say 97.4 per cent is not a bad return to Victorians. We actually support the federation. We support the idea of… looking after the poorer performing economies in the nation.
"We'll leave it to NSW and their Sydney-based mentality to care only about themselves and their welfare and not make a contribution to the rest of the federation."
On Wednesday, Mr Minns and NSW Treasurer Daniel Mookhey said they would demand an explanation over the Commonwealth Grants Commission distribution.
Speaking to Sky News Australia on Thursday, Mr Minns doubled down on his calls for a review of the decision, insisting NSW "can't eat last every single time".
"We really want to solve problems between the states and the Commonwealth, but what we're asking for is what I think is not an unreasonable proposition and that is that NSW is able to claim its share of federal government tax dollars," he explained.
"In 2018 the system was changed, as a result of that if the previous regime was in place we would have got 94 cents in the dollar, now we're looking at a situation where we're going to get 86 cents.
"A lot of that money is going to be sent to Western Australia which is chock full of cash from the mining boom or down to Victoria which is now a welfare state receiving a whole bunch of money from the pockets of NSW families."
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2024-03-15 03:00:02Z
CBMi-AFodHRwczovL3d3dy5za3luZXdzLmNvbS5hdS9hdXN0cmFsaWEtbmV3cy9wb2xpdGljcy9iaXR0ZXItcG9saXRpY2FsLWZldWQtb3Zlci1nc3QtY2FydmV1cC1lc2NhbGF0ZXMtYXMtdmljdG9yaWFuLXRyZWFzdXJlci10aW0tcGFsbGFzLWJyYW5kcy1uc3ctcHJlbWllci1jaHJpcy1taW5ucy1hLXRvb2wtd2hvLWlzLW1hdGhlbWF0aWNhbGx5LWNoYWxsZW5nZWQvbmV3cy1zdG9yeS9hZjUxOTgwNGMzMzExOTJmOTVmMDE1NDM4NjE1ODczNdIBAA
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