All states and territories except Western Australia would lose money under GST changes being looked at by the Productivity Commission, forcing them to either cut services, raise tax or increase debt.
Commonwealth Grants Commission secretary Michael Willcock, who is charged with carving up the revenue pie, was on Thursday quizzed on the Productivity Commission's draft report on its GST review.
Using the example of Queensland and based on the 2017/18 financial year, Mr Willcock said the state would receive $729 million less in GST.
"That would then mean Queensland would need to consider raising additional revenue of its own," Mr Willcock told a Senate hearing.
That could be done through raising state taxes, reducing the quality or scope of certain services or adding to state debt levels.
Government senator James McGrath, representing the treasurer at the hearing, said the Productivity Commission's final report is not released until May.
"Assumptions might be made about how the government will respond to the final report, (but) I think we should wait until report comes out," he said.
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