NSW Treasurer Daniel Mookhey says an inequitable GST allocation will likely cost the state its remaining two AAA credit ratings.
Treasurer Jim Chalmers has stared down a NSW threat to hold out on key joint funding agreements in protest over the GST carve-up, arguing that all governments are feeling financial pain from global instability and persistent inflation pushing down revenues.
“I engage respectfully and pretty frequently with treasurer Mookhey … we need to recognise the pressures on all of our budgets, not just the pressures on some of our budgets,” he said. “It would be easy but wrong for any state or any territory to blame the Commonwealth government for the pressures on their own budget.
This year’s GST allocation, which was finalised by the Commonwealth Grants Commission last month, will pay NSW around 87¢ in every dollar contributed, which amounts to a cut of $188 million for 2025. But the disparity between payments and NSW Treasury estimates amounts to almost $12 billion over four years.
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