One Nation’s Victorian leader Warren Pickering has described Victoria as “the most fiscally and morally bankrupt state” in Australian history, questioning whether taxpayers in other states should continue contributing more than their fair share to support its struggling finances ahead of the November 28 state election.
Pickering made the remarks during an appearance at the Melbourne Press Club on Thursday, responding to questions about whether Victoria should receive back only the amount it contributes through the Goods and Services Tax (GST), rather than benefiting from the current redistribution system.
Victoria currently receives AU$1.07 for every dollar of GST collected within the state, making it a net beneficiary of the national distribution system. The issue has become increasingly politically sensitive as Victoria’s debt continues to climb and the state’s fiscal position deteriorates.
Asked whether states should receive GST revenue on a dollar-for-dollar basis, Pickering initially acknowledged that the proposal appeared reasonable but questioned whether taxpayers elsewhere in Australia should continue supporting Victoria.
“On the surface it sounds like an easy one, it sounds like yes it’s completely reasonable. But then, on the same basis ask every other Australian that’s not in Victoria if the contributions that have kept Victoria’s head above water, all the while remaining the most fiscally and morally bankrupt state in Australian history, is it fair that we keep getting more than our share per capita to prop up infrastructure projects that have contributed to inflation and sent this state broke?” he said.
Victoria, once regarded as Australia’s financial capital, now carries net debt of approximately AU$160 billion, with the figure continuing to rise. Its deteriorating financial position saw it become a net recipient of GST revenue in 2025 for the first time.
By comparison, New South Wales and Queensland receive less GST revenue than they contribute. Queensland receives approximately 87 cents for every dollar collected in the state.
A population-based distribution system, advocated by the New South Wales government, would reportedly reduce Victoria’s GST allocation by about AU$2 billion, from AU$28 billion to AU$26 billion.
Pickering’s comments also revive questions about One Nation’s position on GST redistribution. Federal party leader Pauline Hanson has faced criticism over changing positions on Western Australia’s GST arrangements, particularly the minimum revenue guarantee introduced under former Coalition prime minister Scott Morrison.
The arrangement, which has bipartisan support from Labor and the Coalition, protects Western Australia’s share of GST revenue, despite concerns that it disadvantages other states, including Queensland. Hanson clarified in August that she supported the existing deal.
Pickering’s appearance came as One Nation’s electoral prospects in Victoria continue to strengthen. The party, led nationally by Hanson, is polling at approximately 22 per cent of the primary vote, putting it in a potentially strong position to win lower house seats in Melbourne’s outer suburbs and regional communities.
Such a result could produce a hung parliament, complicating government formation after the November 28 election.
The polling has also intensified pressure on the governing Labor Party, with Premier Ben Carroll facing the possibility of losing office. In several polls, Labor has slipped to third place behind the Liberal-National Coalition and One Nation.
Liberal leader Jess Wilson is campaigning on a message of competence and administrative change, seeking to attract voters considering a protest vote for One Nation. Her campaign advertisements promise “real change” and argue that she has a practical plan to govern Victoria.
At the Melbourne Press Club, Pickering also criticised media coverage of his party, accusing journalists of disproportionately targeting One Nation. He warned that the party had become an established force in Australian politics.
One Nation is now “a part of the permanent political landscape. Whether people like it or not: get used to it,” he said.
However, questions about the party’s economic policies emerged on Thursday, coinciding with the release of Victoria’s pre-election budget update.
Pickering struggled to explain how One Nation would finance its proposed increases in spending on police and courts alongside billions of dollars in tax cuts without adding to the state’s already substantial debt.
He rejected suggestions that the party’s policies would increase borrowing, arguing that additional expenditure would be balanced through substantial savings once One Nation took control of government.
“We don’t accept that our policies will further increase debt,” he said, adding that the party intended to identify billions of dollars in savings through a comprehensive government audit.
Without presenting detailed costings, Pickering identified cuts to climate-related programmes aimed at achieving net-zero emissions and reductions in senior and middle-management positions across the Victorian public service as potential sources of savings.
He also suggested that artificial intelligence could help reduce administrative costs within Victoria Police by automating paperwork and routine tasks.
Under his proposal, carefully governed AI systems would operate as an administrative force multiplier, with human police officers responsible for checking and authorising the technology’s output.
The proposal echoes arguments made by federal Treasury spokesman Barnaby Joyce about using artificial intelligence to improve government efficiency and identify public-sector savings.
However, Pickering did not provide a detailed financial assessment showing how much could be saved through AI, public-service restructuring or climate programme reductions.
With Victoria confronting mounting debt, pressure on public services and an increasingly competitive election campaign, One Nation’s economic credibility is likely to become a central issue as voters assess whether the party can translate its growing popularity into a workable governing programme.
