Queensland is estimated to receive $16,384 million in GST in 2022-23. This would be an increase of $645 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 Queensland’s GST share in 2022‑23 compared with 2021‑22
How Queensland compared to other states and territories
Queensland’s capacity to raise revenue from its own taxes is lower than the national average. For example:
The characteristics of the people living in Queensland mean that the cost of providing government services is higher than the national average. For example:
Overall, with below average capacity to raise revenue, and higher costs of delivering services, Queensland receives a per person GST allocation above 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.