Why does this matter to Queensland councils?
GST revenue represents about a quarter of the Queensland budget. It is used by the State Government to pay for community services across Queensland.
Collection of public sector revenue under the Australian Federation’s revenue arrangements and the principles of fiscal equalisation impact all three levels of government.
Any proposed reduction in GST funding to Queensland would impact the current levels of funding councils receive to deliver real services and facilities to their communities – and local government generates just 3% of the national taxation ‘pie’.
Recent funding programs like the Palaszcuk Government’s Works for Queensland program have allowed councils to commence much-needed infrastructure works on local projects.
Major funding reform to give councils longer-term certainty in planning and delivering essential infrastructure and services (as per the Works for Queensland model) is a priority policy platform for the LGAQ in 2018.
What action is the LGAQ taking to represent councils on this issue?
- The Deputy Premier has written to the LGAQ outlining the impact on Queensland of the proposed changes contained in the Productivity Commission’s Draft Rreport and has encouraged us to participate in the public hearing in Brisbane, 5 February.
- Our CEO Greg Hallam will attend and speak on behalf of Queensland councils on the issue.
- Greg Hallam will meet with Glenn Butcher, Assistant Minister for Treasury on this issue in the near future to discuss the likely impacts on Queensland councils and communities.
Councils can register to speak at the hearing on 5 February in Brisbane at the Productivity Commission website.
Want a little more context? Read LGAQ Media Executive Craig Johnstone’s discussion piece on the current system or watch this one minute video on the current taxation pie.