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Productivity Commission Inquiry

The Australian Government asked the Productivity Commission (PC) to undertake an inquiry into Australia's system of Horizontal Fiscal Equalisation (HFE), which underpins the distribution of GST revenue to the States and Territories (States).

The PC report was released by the Treasurer on 5 July 2018. Information on the inquiry, including the final report, can be found on the Productivity Commissions website.

The Treasurer also released the Government’s interim response to the PC report on 5 July.

Legislation has now passed the Parliament to amend the Commonwealth Grants Commission Act 1973 and the Federal Financial Relations Act 2009 to give effect to the Government's policy.

The Commonwealth Grants Commission made two submissions to the inquiry: