In recommending a distribution of the GST among the states, the Commonwealth Grants Commission considers Commonwealth payments that are available to the states to fund services and invest in infrastructure.
The amount of GST a state or territory needs depends on its economic, social and demographic characteristics. The research paper looks at state GST needs over a decade and the main reasons for changes. The paper provides an overview of the drivers of states' fiscal capacities and the impact that changes in states' circumstances can have on GST needs.
This paper compares the systems for fiscal equalisation between regional governments in Australia, Canada, Germany and Switzerland. It looks at how resource endowments bring challenges for fiscal equalisation, and how revenue equalisation can influence policy decisions in different countries.