NSW must come to terms with the loss of more than $6 billion in GST revenue over the next few years after the federal budget laid bare the impact on states.
Treasurer Josh Frydenberg overnight revealed the nation’s financial blueprint which included news that the GST pool for 2020/21 is forecast at $59.9 billion, down $600 million at the end of the 2019/20 financial year.
NSW Treasurer Dominic Perrottet blamed the COVID-19 pandemic for punching a $21.2 billion hole in GST revenue over the forward estimates to 2023/24.
“This equates to a potential loss to NSW of $6.2 billion over this period,” he said.
“The nation’s two biggest economies, NSW and Victoria, have been hard hit by the pandemic and the resultant drop in GST revenue is something we will overcome as we chart a course of recovery.”
Perrottet welcomed some elements of the budget, including a $2.7 billion investment in NSW infrastructure projects to underpin jobs.
The Treasurer plans to deliver the NSW budget on Nov. 17.