Federal Treasurer Jim Chalmers has defended the Commonwealth’s financial support for Queensland as the state faces the prospect of a credit rating downgrade and mounting debt pressures.

In a post on X, Chalmers highlighted Commonwealth investment and revenue flowing to Queensland, arguing the state has received substantial federal support across infrastructure, industry and GST funding.

Chalmers pointed to major Commonwealth-backed projects and said Queensland was receiving record levels of GST funding. He also highlighted revenue from stamp duty and coal royalties as part of the broader financial picture.

The comments come as Queensland faces the risk of its first credit rating downgrade since 2009. ABC News reported that the state’s fiscal position has deteriorated, with total debt forecast to exceed $216 billion by 2029-30 and pressure building from higher operating costs, lower property activity and weaker stamp duty revenue.

Chalmers said the potential downgrade was concerning despite what he described as increased Commonwealth support for Queensland. In federal Parliament, he said the Queensland Government’s fiscal position had experienced a sharp deterioration.

Queensland Treasurer David Janetzki has taken a different position, blaming the former Labor state government and the Albanese Government’s policies for contributing to the state’s financial pressures. The Queensland Government has also pointed to GST changes and other Commonwealth decisions when discussing the state’s budget position.

The debate comes as Queensland’s borrowing is forecast to rise sharply. ABC News reported that interest expenses are expected to reach $6.83 billion in the current financial year and almost $11 billion by 2029-30.

The competing arguments highlight a broader dispute over how much responsibility sits with Queensland’s current and former state governments, the Commonwealth and wider economic conditions.

Sources: Jim Chalmers; ABC News; Australian Government Treasury.