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2020 Review

A complete review of the methodology underlying the CGC’s advice to Government on the relative fiscal capacity of States and Territories is conducted every five years. The purpose of the review is to determine the most appropriate methods and data for measuring State and Territory relative fiscal capacity.

NOTICE

The draft report for the 2020 methodology review and State submissions on the report are now available. The Commission provided the draft report to the Commonwealth Treasurer on 25 June 2019. It was released to State treasuries on 6 August 2019.

On 29 November 2019, the Commission released a position paper on Significant changes since the draft report. Submissions are due 3 January 2020.

The Commission will finalise its methods and provide recommendations for the distribution of GST revenue among the States in 2020-21 by 28 February 2020.

2019 Update

The update process is conducted annually and provides recommendations to the Commonwealth Treasurer on the relative fiscal capacity of the States using the latest review methods. Calculations are updated using the latest reliable data for the previous three financial years.

The 2019 Update Report was provided to the Commonwealth Treasurer in February 2019. The recommended relativities relate to the distribution of GST revenue among the States in 2019-20.

NOTICE

An updated staff paper providing an overview of Commonwealth-State financial relations is now available, along with the following presentations: How the CGC does its job, plus an Introduction to fiscal equalisation in Australia.

Who We Are

Operating under the Commonwealth Grants Commission Act 1973, we are a small independent statutory authority responsible for measuring the relative fiscal capacity of the States and Territories. The CGC has:

- A Commission which makes decisions about how to measure the relative fiscal capacities of the States

- A Secretariat which is responsible for collecting and assessing data, and undertaking research to provide considered advice to the Commission.

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Fiscal Equalisation

Fiscal equalisation makes it possible for every State and Territory to provide similar standards of service (e.g. hospitals, education, social housing, transport and policing) with comparable levels of taxation, whilst allowing the benefits of decentralised governance and administration to be retained.

Some form of equalisation has been in place in Australia since Federation to address both the vertical fiscal imbalance between the States and the Commonwealth, and differences in fiscal capacities across States.

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Scam Alert

CGC is warning the public to be wary of unsolicited communication.

You are strongly advised not to give out personal information.

If you are unsure about the legitimacy of a communication you have received which claims to be from CGC, please contact us via secretary [at] cgc.gov.au or call us on (02) 6229 8800. You can also report it as a scam to the Australian Competition and Consumer Commission (ACCC) via the SCAMwatch website, or by calling 1300 795 995.

REPORT SCAM