New GST changes put back to May

QUEENSLAND has been given a four- month stay of execution to argue its case against a proposed change to the GST that would see it almost $ 730 million worse off.

Treasurer Scott Morrison will today announce the Productivity Commission’s final report into the way the GST is distributed will be delayed until May 15 for further analysis and consultation.

The move will also delay its release until almost immediately after the May 8 Budget and after the South Australian state election.

The draft report released in October caused consternation among many states, including Queensland, which modelling showed would be $ 729 million worse off if the new distribution method had been introduced last year.

The Queensland Government has released a further submission, claiming the state would have been worse off over 10 years to the tune of almost $ 900 a person.

Mr Morrison said the commission had requested the extension to work through key issues.

“The PC inquiry has demonstrated in its interim report that the system is broken and needs a real fix,” he said.

He also said more work would be done to predict how the proposed and current models would impact GST distribution in future years, rather than just past examples.

The GST distribution model is criticised for its complexity and inequity.

Queensland receives about $ 1.18 back for each dollar it contributes to the GST, which grants it $ 15 billion a year.