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 a non-Corporate entity under the Public Governance, Performance and Accountability Act 2013. It 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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Introduction to fiscal equalisation in Australia

The Commission staff have produced two short PowerPoint presentations explaining what Horizontal Fiscal Equalisation is, and how the CGC calculates the associated relativities.

2017 Update New Issues

The 2017 Update New Issues staff discussion paper was released to the States on 30 June 2016. Staff submissions are due by 16 September 2016.

2016 Update Report

The 2016 Update report, which recommends the distribution of GST revenue among the States in 2016-17, was released on 7 April 2016. Any queries about the report should be directed to secretary@cgc.gov.au or (02) 6229 8800.

Illustrative GST Revenue, 2016-17

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