The mining boom and post-pandemic debt hangovers have created a major financial split between the states, with implications for services, infrastructure and cost-of-living handouts.
The mining boom and post-pandemic debt hangovers have created a major financial split between governments in resource-rich Western Australia and Queensland, and south-eastern states battling spending blowouts and mounting debts.
“Western Australia and Queensland are in a stronger position ... Victoria and NSW are still grappling with the pandemic aftershocks.” Mr Foo said. Moreover, the poor finances of non-mining states is set to become a problem nationally for Treasurer Jim Chalmers.The Albanese government wants the states to stop cost-shifting health and education costs to the National Disability Insurance Scheme, which will cost about $35 billion this year and could reach $90 billion a year by 2032 if left unchecked.
The Productivity Commission and Commonwealth Grants Commission are set to review the GST distribution rules after the 2025 federal election.