Queensland is estimated to receive $18,220 million in GST in 2023-24. This would be an increase of $673 million compared to 2022‑23. The change reflects Queensland’s assessed needs for GST and its share of the growth in the GST pool. It also reflects the application of the 0.7 GST relativity floor, which increases the GST distributed to Western Australia and reduces the GST distribution to all other states.
GST distribution in 2023-24
Key factors that affected Queensland’s GST needs in 2023-24 compared with 2022-23
How Queensland compared with 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 payment above the national average.
How the GST is distributed
The Commonwealth Grants Commission provides independent advice to the Commonwealth government on how GST 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 2023-24 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.