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 |
Grants Commission |
Difference |
Equal per |
Grants Commission |
Difference |
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 |