Australian budget

“Every state better-off” under GST carve-up

Leith van Onselen
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By Leith van Onselen

“Every state will be better-off”. That’s the claim from the Turnbull Government regarding the proposed carve-up of GST revenue, which has come about after Western Australia demanded more money after its GST allocation collapsed despite its economy failing:

At the moment the GST is collected by all states and territories and then redistributed according to each state’s ability to pay for services (called ‘horizontal fiscal equalisation’).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.