The Western Australian Government has expressed its concerns over the expected cut to GST revenue, with Premier Colin Barnett saying up to $500 million is expected to be removed from the state’s coffers.

 

Mr Barnett warned that the sharpest drop in funding is likely to be in the area of training, which Mr Barnett says could not come at a worse time.

 

"The commonwealth and state had been working well on training, but the commonwealth is now reducing its commitment in this state where we need to train people because there are jobs and labour shortages," Mr Barnett told reporters.

 

"For the coming year, the state has picked up that shortfall, but we can't continue to do that because we haven't got the GST share to help fund it.

 

"You're going to see impacts in a lot of those commonwealth/state partnership agreements, and I think that's unfortunate."

 

South Australian Treasurer Jack Snelling also expressed his concerns with the budget spending.

 

"What we've got will be the largest writedown in revenue a treasurer in South Australia has ever had to face," Mr Snelling said.

 

South Australia is likely to face a $2.8 billion hit to its budget over the coming four years as GST revenues and state revenues drop significantly.

 

"As a government, we are committed to producing a fiscally responsible and financially sustainable state budget.

 

"In the wake of these revenue falls, tough decision will need to be made."

 

Queensland has joined other states in voicing their concerns, with State Treasuerer Tim Nicholls saying the Federal Government forgot the state.

 

“Queensland has received no funding for critical road, rail and port infrastructure across the state,” Mr Nicholls said.

 

“We have also suffered a cut of $2.5 billion in Specific Purpose Payments (SPP’s) for the next financial year which will result in cuts to services like skills and workforce development, community services, affordable housing and environmental payments.”