States war over shrinking GST pie


Last week, we witnessed a war of words erupt between the two major states over the distribution of the Goods and Services Tax (GST).

This followed the unfair decision to grant Victoria an extra $3.88 billion of GST, whereas NSW’s allocation was cut by $188 million:

GST distribution

NSW Treasurer Daniel Mookhey and his state counterparts met with Treasurer Jim Chalmers on Friday, with Mookhey pitching a proposal from NSW Premier Chris Minns to change the way that the GST is allocated.


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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.