GST revenue sharing relativities

Following consultation with the States and Territories, I have accepted the recommendation of the Commonwealth Grants Commission (CGC) on the GST revenue sharing relativities for 2019-20.

The CGC’s recommendations reflect its assessment of each state’s fiscal capacity over the three years from 2015-16 to 2017-18.

Going forward, every State and Territory will be better off as a result of the legislation that the Coalition Government passed in 2018.

Under our reforms to the GST, an estimated additional $9 billion in extra untied funding will be delivered to the States and Territories over 10 years and an additional $1 billion in perpetuity once fully implemented.

The Commonwealth and the West Australian and Northern Territory Governments have also co-signed bilateral agreements to formalise Federal GST top-up payments for the three years from 2019-20.

This will effectively lift Western Australia’s share of the GST to 70c in the dollar, and will assist the Northern Territory with the transition to the new GST distribution system.

Delivering a fairer and more sustainable GST distribution system is part of our plan for a stronger economy, helping to deliver the essential services Australians rely on.

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