Drop in GST revenue will cost NSW ‘more than Covid’, treasurer says
New South Wales will “almost certainly” lose its remaining top-notch debt rating after an “absurd” carve-up of GST revenue stripped more from state revenue than Covid-19, the state’s treasurer, Daniel Mookhey, said.
The assessment comes about a month after the Commonwealth grants commission revealed how it would allocate GST money. NSW complained it would lose $1.65bn even as its population swelled and other states, such as Victoria, got extra funds.
Mookhey will tell the McKell Institute in Sydney on Monday that the hit to NSW from the commission verdict would be $11.9bn over four years.
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“The Commission’s decision will cost NSW more in lost revenue than Covid-19 did,” the treasurer will say, according to excerpts from his speech. “NSW has never had such a sudden fall in GST.”
