The Commonwealth Grants Commission recommends how the revenues raised from the Goods and Services Tax (GST) should be distributed to the States and Territories to achieve horizontal fiscal equalisation (HFE).

It is an independent statutory body which responds to requests sent to it by the Commonwealth Treasurer. It makes its recommendations in consultation with the States and Territories and based on data provided by them and independent statistical sources.


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Wage Costs Assessment

In the 2015 Review Report, the Commission committed to a comprehensive review of the Wage Costs assessment. This paper sets out the conceptual case on which the current assessment is based, State views on that case based on submissions received up to and including the 2015 Review, and views on the estimation methodology.

2016 New Issues

In expectation that terms of reference for a 2016 Update will be sent to the Commission, this paper sets out issues identified by Commission staff as relevant to a 2016 Update. Proposals on how they might be handled are included, as a basis for seeking the views of the State and Commonwealth treasuries.

2015-16 Distribution of GST

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