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The federal government has provided Victoria with a financial bailout via a large increase in its GST allocations over recent years at the expense of NSW:
In 2024-25, the Commonwealth Grants Commission increased Victoria’s GST allocation by $3.8 billion, whereas NSW lost $188 million.
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In response, NSW Premier Chris Minns labelled Victoria a “welfare state”.
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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.