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Distribution of Australia's Goods and Services Tax (GST) among states and territories

By Updated 14 March 20263 articles from 3 independent sources

Consensus Summary

The articles cover the distribution of Australia's Goods and Services Tax (GST) revenue among the states and territories, with a focus on the significant benefits received by Western Australia under a 2018 deal. There is a consensus that NSW's share of the GST will shrink to its lowest level since the tax was introduced, while Queensland and Victoria are seeing increases. However, the articles also highlight contradictory information on the exact extent of NSW's relativity decline. The reports discuss the role of the Commonwealth Grants Commission in determining the GST allocations and the ongoing Productivity Commission inquiry into the 2018 reforms.

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Key details reported by multiple sources:

  • Western Australia will receive an extra $5.5 billion in GST revenue in 2026-27 thanks to a 2018 deal
  • New South Wales' share of GST revenue will shrink from 0.86 to 0.82 of its population share, the lowest since the GST was introduced in 2000
  • Victoria's GST relativity fell slightly from 1.07 to 1.06, but the state's revenue from the tax is forecast to increase to $27.9 billion in 2026-27
  • Queensland's GST share will increase by $1.68 billion, the biggest of any state, to $18.4 billion
  • The Commonwealth Grants Commission is responsible for determining each state's share of GST revenue based on economic and budgetary data

Points of Difference

Details reported by only one source:

ABC
  • The West Australian government will get an extra $6.6 billion from Australian taxpayers in the coming financial year under its special GST deal, despite being the only state with a budget surplus
  • The deal is expected to cost taxpayers $60 billion in the next five years
GUARDIAN
  • Mike Callaghan, the chair of the CGC, said the NSW premier was wrong to say the state was receiving its lowest relativity on record
  • The Productivity Commission is conducting an inquiry into the 2018 GST reforms, with an interim report due by August and a final report by the end of the year

Where the reporting differs

Details that conflict, or appear in only some outlets:

  • The Guardian article states that excluding the 2018 legislation impact, NSW's relativity would have been 0.89, while the NewsComAu article says NSW's relativity fell from 0.86 to 0.82

Source Articles

GUARDIAN

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

NEWSCOMAU

Tax deal costing Aussies $6.6bn

Millions of Australians are being “shortchanged” on tax, leaders have warned, while one state booms.

ABC

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.