New South Wales loses out in GST distribution, Western Australia gains
Consensus Summary
The three articles cover the changes in the distribution of GST revenue among the Australian states and territories, with a focus on the 2026-27 financial year. The key points are that New South Wales is set to lose out, with its share of GST revenue shrinking to its lowest level since the GST was introduced, while Western Australia will receive a significant boost in its GST allocation thanks to a deal struck in 2018. The articles also highlight the ongoing debate around the fairness of the GST distribution system and the impact it has on different states. There are some contradictions between the sources regarding the specific figures and historical comparisons, but the overall story of NSW losing out and WA gaining is consistent across the articles.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Western Australia will receive an extra $5.5 billion in GST revenue in 2026-27 thanks to a deal struck in 2018
- New South Wales' share of GST revenue will shrink from 0.86 to 0.82, the lowest since the GST was introduced in 2000
- Western Australia will receive the same per-person GST share as New South Wales or Victoria (0.82) due to the 2018 legislation guaranteeing it a minimum share
- The Commonwealth Grants Commission's recommendations will see NSW receive $26.1 billion in GST revenue in 2026-27, up from $25.8 billion this year
- Victoria's GST revenue is forecast to increase to $27.9 billion in 2026-27, up from $26.4 billion
- Queensland's GST share is expected to increase by $1.68 billion to $18.4 billion, the biggest increase of any state
Points of Difference
Details reported by only one source:
- The deal is expected to cost taxpayers $60 billion in the next five years
- Economist Saul Eslake says the deal has cost taxpayers $36 billion since 2018
- The reforms resulted in the introduction of a GST 'floor', ensuring Western Australia receives the same per person share of GST as the 'standard state' – NSW or Victoria – without which the WA government estimates it would lose about $6 billion
- The commission noted NSW's GST share was more significantly reduced in 2026-27 than in 2025-26 under the 2018 legislative amendments; however, in doing so, 'no worse off payments' increased
Where the reporting differs
Details that conflict, or appear in only some outlets:
- Article 1 states NSW's relativity would have been 0.89 excluding the 2018 legislation's impact, while Article 2 says NSW's relativity will be 0.82 in 2026-27, the lowest since the GST was introduced
Source Articles
Tax deal costing Aussies $6.6bn
Millions of Australians are being “shortchanged” on tax, leaders have warned, while one state booms.
Western Australia the big GST winner again, despite massive budget surpluses
WA will get an extra $6.6 billion from taxpayers in the coming financial year under its special GST deal, despite being the only state with a budget surplus.
NSW emerges as main loser from GST carve-up as WA gets extra $5.5bn
NSW premier says latest distribution calculation, with a reduction in the state’s share of revenue relative to its population, is unfair and ‘past its use-by date’ Get our breaking news email , free app or daily news podcast Australia’s richest state will receive an extra $5.5bn in GST revenue thanks to a sweetheart deal struck with Western Australia in 2018, as the New South Wales premier attacked the latest distribution calculation as unfair and “past its use-by date”. The Commonwealth Grants
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