The Commonwealth Grants Commission was established on 17 July 1933 under the Commonwealth Grants Commission Act 1973, to recommend 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, 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. As a Commonwealth statutory authority, the Commission also has responsibilities under the Public Service Act 1999 and the Public Governance, Performance and Accountability Act 2013.
More information can be found at the Council on Federal Financial Relations website.