Queensland will take a $400 million hit to its share of GST revenue next financial year in a move that will deliver more to other states.
Treasurer Jackie Trad was briefed by federal Treasurer Scott Morrison alongside her state and federal counterparts in Melbourne on Thursday.
Ms Trad said the 2018/19 cut was significant to the state's budget, but acknowledged it was not unusual for GST revenue to change.
"Clearly it's disappointing, but these are the outcomes set by the independent arbiter and we know what the rules are," she told Sky News.
"Sometimes Queensland gets an increase in GST and sometimes we are a donor state to other states."
"What I am more concerned about is in fact the Turnbull government's desire to change the rules."
The Productivity Commission is due to release its review into the way GST is distributed next month.
Under a draft proposed scheme Queenslanders would lose $1.6 billion every single year, a formula Ms Trad has previously labelled a "rip-off" rather than a redistribution.
She has also warned the number of the state's teachers, police and nurses could be slashed if the proposed reduction goes ahead.
