NSW budget sabotaged by immigration

Last week, it was revealed that NSW’s allocation of the goods and services tax (GST) would be cut by $188 million in 2024-25, whereas Victoria’s GST allocation would be lifted by $3.8 billion:

NSW’s GST cut comes despite the state receiving 174,000 net overseas migrants in in 2022-23, 20,000 more than Victoria (154,000) and easily the highest share in the nation:

New analysis from the Daily Telegraph shows that immigration fuelled population growth will cut the amount of GST received by NSW by $80 per person, from $2902 in 2023-24 to $2822 in the coming 12 months.

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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.