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2021 Update

The Commission expects to receive terms of reference to produce relativities for distributing GST revenue in 2021-22. The Commission will produce relativities in accordance with the Commonwealth's new equalisation arrangements enacted in the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018


On 24 August the Commission released a discussion paper on issues affecting the 2021 Update, including whether policy responses to the COVID-19 outbreak will have implications for the methodology for measuring relative fiscal capacities. Submissions received in October 2020 are now available

2020 Review

Following a comprehensive review of its methodology, the Commission provided its recommendations for the distribution of GST revenue among the States in 2020-21 to governments on 28 February 2020. The 2020 Review final report was released publicly on 16 March 2020. The 2020-21 GST revenue sharing relativities where accepted by the Australian Treasurer on 3 April 2020. 


The Commission has sought feedback on the way it conducted the review. A summary of the feedback and the Commission's response is now available

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.


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.


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 services [at] cgc.gov.au or call us on (02) 6218 5700. 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.