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.

June 3, 2014 by rajcairns 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

 

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