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WA has a valid claim on more GST revenue

By Matthew Canavan - posted Wednesday, 22 April 2015


Under the current formula, however, Queensland stands to lose around half of this amount. What incentive then is there for a state to develop its gas industry? New South Wales has just as good CSG resources as Queensland but it will get bailed out thanks to a subsidy from Queensland CSG royalties.

This is not a "veil of ignorance" it is simply plain ignorance.

I live in central Queensland. The CSG industry has brought many jobs and investment but it has also brought housing stress, road damage and inflated costs for local governments.

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Western Australia and Queensland have been arguing for years that these costs need to be factored in when splitting up the GST. In 2005, Canada adopted a 50 per cent discount to mining royalties in response to similar concerns in their federal division of revenues.

The current approach is in effect a mining tax by stealth and reduces incentives for states to develop their own industries. This makes us poorer as a nation with fewer good job opportunities.

Tony Abbott has pointed out that we have 16 months until another state or federal election in Australia: a unique opportunity to put political squabbling aside and come together in the national interest. He has invited Premiers to come together for a "Camp David" style retreat in July to work matters out. For our interests, let's hope that the Premiers use the next few months to grow up.

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Matthew Canavan is a senator for Queensland.

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