New South Wales
New South Wales is estimated to receive $23,218 million in GST in 2022-23. This would be an increase of $1,111 million compared to 2021‑22. The change reflects its share of the growth in the GST pool. It also reflects the application of the 0.7 GST relativity floor, which increases Western Australia’s GST and reduces the GST distribution to all other states.
GST distribution in 2022-23
Key factors that affected New South Wales’ GST share in 2022‑23 compared to 2021-22
How New South Wales compared to other states and territories
New South Wales’ capacity to raise revenue from its own taxes is similar to the national average. For example:
The characteristics of the people living in New South Wales means that the costs of providing government services is similar to the national average. For example:
With around average costs of providing services, and around average revenue raising capacity, New South Wales receives a per person GST allocation around the national average.
How the GST is distributed
The Commonwealth Grants Commission provides independent advice to the Commonwealth government on how GST revenue should be distributed to ensure each state has a similar capacity to provide services. The amount of revenue each state can raise differs because it depends on things like the value of mining production, property transactions and taxable payrolls. The cost of providing services varies too, based on things like a state’s size, its geography, where its residents live and their age, health and wealth.
Changes to the GST distribution in 2022-23 reflect the 2018 GST legislated arrangements. These include implementation of a GST relativity floor below which no state’s GST revenue sharing relativity can fall and Commonwealth top ups to the GST pool. The Commonwealth also makes separate transitional no worse off payments to the states.