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2021 Update

On 15 March 2021, the Commission published its recommended relativities for distributing the GST among the states and territories in 2021-22. The final report is now available, with a range of supporting information.

The relativities for 2021-22 were produced 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.

 

Occasional Papers

Read the latest occasional paper on the New arrangements for distributing GST.

The paper discusses the new way to distribute GST revenue among the states and territories as legislated by the Commonwealth Parliament in 2018.

The occasional paper series aims to improve public understanding of how the GST pool is distributed among states and territories in line with the principal of horizontal fiscal equalisation.
 

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 is:

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

- An agency that 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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CGC assists journalists and media representatives with information requests. For media enquires please email media [at] cgc.gov.au