Treasurers settle on job-boosting plan Freeing up state money to build more infrastructure was on the agenda at the treasurers' conference. THE federal government has offered potentially billions of dollars in tax incentives to the states if they sell off public assets and put the money into new job-creating infrastructure. Treasurer Joe Hockey made the proposal at a meeting with state and territory treasurers in Canberra on Wednesday, before Prime Minister Tony Abbott's first talks with the premiers and chief ministers on December 13. The treasurers also agreed in principle to lower the GST-free threshold on goods bought online from overseas retailers. The infrastructure incentive and the GST change are aimed at creating jobs in big and small business as mining investment tapers off. NSW Treasurer Mike Baird said Treasury secretary Martin Parkinson gave the meeting a sobering assessment of the national economy, pointing to subdued growth over the next two to three years. However, Mr Baird said the infrastructure incentive offer was very significant. "They have made a proposal ... that any state that undertakes a long-term lease or a privatisation of assets that releases capital on states' balance sheets, they are happy to provide an incentive payment to make that more attractive and to put that towards additional infrastructure," Mr Baird said. While Mr Hockey's office did not provide any details, Infrastructure Partnerships Australia chief Brendan Lyon said he understood the incentive to be a "company tax equivalence payment" which could only be spent on new state infrastructure. States were well aware of the potential size of these payments, My Lyon said. In the case of selling Queensland's public-owned electricity sector, the incentive figure was $472 million in recurrent funding. It is likely the federal parliament would need to amend tax laws for the change to go ahead. Acknowledging past political problems with privatisation, Mr Baird said before any deals were finalised the states would have to "take that to their parties and they have to take that to their communities." Queensland Treasurer Tim Nicholls said it was a generous offer, but it would not be the "determining factor" if his state decided to go down the privatisation path. "We've always said we are going to look at the assets we have," he said. A report by Infrastructure Australia published in June identified up to $139 billion in state-owned ports, roads, freight railways, water, airports and electricity assets that could be sold or long-term leased to the private sector. In a bid to boost the retail sector, the treasurers will finalise a new agreement on the GST treatment of online goods by March 2014. At the moment, overseas-bought goods valued at less than $1000 are exempt from the 10 per cent GST. Retailers say it should be lowered to about $20, which would level the playing field. The states say it would also capture extra GST revenue for schools, roads and hospitals. A report produced for the Labor government found the cost of collecting the revenue would far outweigh the revenue itself.