The Queensland Government has decided to fund stage two of the Haughton pipeline itself, rejecting $195 million in federal funding due to concerns over GST clawbacks. Treasurer Cameron Dick stated that the state would rather finance the project independently than see most of the federal money lost to GST adjustments.
According to the state government, an estimated $156 million of the $195 million would be reclaimed through reduced GST payments without an exemption. The federal funding was approved in July, but negotiations stalled as Queensland sought a GST exemption.
Federal Member for Herbert Phillip Thompson disputed the state's calculations, calling the figure incorrect and noting that GST exemptions are considered at specific times, not currently. He confirmed that the $195 million would remain in Townsville, but the state government has suggested redirecting it to flood recovery projects, which are GST-exempt.
Stage one of the Haughton Pipeline Duplication is complete, with 33 kilometers of pipe laid. Stage two will extend the pipeline to Clare, enabling direct water pumping from the Burdekin River. Tenders for stage two are expected to be advertised this weekend, with construction taking 18 months.
