RAJ REPORT

AMAZING —NT gets a extra $2239 million in Gst funding because of horizontal fiscal equalisation——–FNQ gets nothing because the Queensland Government spends it in BRISBANE——————-Australia has had various forms of fiscal equalisation since 1901. The view was taken that, unless some type of intervention occurred, the Federation would be unsustainable, as States with weaker financial positions would have had to reduce services and/or raise additional revenue.

Leave a comment


 

Under the Intergovernmental Agreement on Federal Financial Relations, the States are entitled to receive payments from the Commonwealth equivalent to the revenue received from the GST. The amount of GST distributed to the States is in the order of $50 billion in 2013-14. The Commonwealth distributes GST among the States having regard to the recommendations of the Commonwealth Grants Commission.

The CGC takes into account differences in the States’ capacities to raise revenues and differences in the costs the States would incur in providing the same standard of government services, including through acquiring the infrastructure used to deliver those services (Commonwealth Grants Commission, 2013).

In 2013-14, around $4.7 billion (or 9.3 per cent) of the total $50 billion in GST payments will be redistributed among the States.



 

 

able 8.4.1: Distribution ofGST by State

2000-01

2013-14

 

Equal per capita
distribution
($ million)

Grants Commission
distribution
($ million)

Difference
($ million)

Equal per
capita
distribution
($ million)

Grants Commission
distribution
($ million)

Difference
($ million)

NSW

10,182

9,262

-920

16,053

15,558

-495

VIC

7,488

6,523

-965

12,479

11,320

-1,159

QLD

5,617

5,721

104

10,133

10,741

608

WA

2,977

2,930

-48

5,493

2,458

-3,036

SA

2,348

2,776

428

3,629

4,595

966

TAS

733

1,106

373

1,111

1,801

689

ACT

491

546

55

834

1,022

188

NT

308

1,280

972

517

2,756

2,239

Total

30,145

30,145

0

50,250

50,250

0

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s