The federal government is warning the Premiers against luring businesses to their state with financial incentives.

Qantas is understood to be seeking offers from states and territories as it threatens to move out of its expensive Sydney headquarters.

Tourism, Trade and Investment Minister Simon Birmingham admitted to Scott Emerson he’s concerned a bidding war between states would “ultimately drive towards a form of corporate welfare”.

“All we’re doing is transferring taxpayers’ money to shuffle jobs around Australia – not creating one extra job for Australians.

“If they respond like this to Qantas, then there’s a risk that companies in far less tough times … might try it on as well.”

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