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.
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.
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.