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2026-27 GST revenue distribution in Australia

By Updated 14 March 20263 articles from 3 independent sources

Consensus Summary

The articles analyze the distribution of GST revenue in Australia for the 2026-27 financial year. They report that Western Australia will receive a significantly higher share of the GST pool compared to other states, thanks to a special deal struck in 2018. This deal is expected to cost Australian taxpayers billions over the next several years. The articles also note that New South Wales will see its share of the GST pool decrease, while Queensland's share will increase. Overall, the GST pool is projected to grow by nearly $6 billion in 2026-27, but the distribution of this revenue remains a contentious issue among the states and territories.

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Key details reported by multiple sources:

  • Western Australia will receive $9.3 billion from GST in the coming financial year, much more than the $2.7 billion it would have received if it followed the same distribution rules as other states
  • The deal is expected to cost taxpayers $60 billion in the next five years
  • New South Wales will see its share of the GST pool fall from 26.7% to 25.5%
  • Queensland will see its share increase from 17.4% to 18%
  • Every state and territory will receive more overall from the GST in 2026-27 than in 2025-26, because the total GST collected has increased by nearly $6 billion

Points of Difference

Details reported by only one source:

ABC News
  • WA will get an extra $6.6 billion from taxpayers under its special GST deal
  • Economist Saul Eslake says the deal has cost taxpayers $36 billion since 2018
The Guardian
  • The fact that WA receives more than its 'fair' share under the allocation methodology leaves less of the fixed GST pool for the other states and territories
  • To ensure no jurisdiction is left worse off under the deal, the commonwealth provides 'top up' payments which totalled $5.5bn in 2026-27, bringing the cumulative cost to the budget since 2018 to $36bn
NEWSCOM
  • 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 $6bn
  • NSW, Australia's most populous state, is projected to receive only an additional $316m over 2025-26, with a share of $26.1bn

Where the reporting differs

Details that conflict, or appear in only some outlets:

  • The ABC article states that the 'deal is expected to cost taxpayers $60 billion in the next five years', while the Guardian article estimates the cumulative cost since 2018 to be $36 billion

Source Articles

NEWSCOMAU

Tax deal costing Aussies $6.6bn

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

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

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.