The Australian Government asked the Productivity Commission to undertake an inquiry into Australia's system of Horizontal Fiscal Equalisation (HFE), which underpins the distribution of GST revenue to the States and Territories (States).

 

The Productivity Commission issued a guidance note on 19 May 2017 and a draft report on 9 April 2017. A final report will be released in January 2018.

 

Information on the inquiry can be found here: http://www.pc.gov.au/inquiries/current/horizontal-fiscal-equalisation

 

The Commonwealth Grants Commission has made two submissions to the inquiry: