6 May 2015
Media Release - #2015038, 2015

GST relativities decision

Following consultation with the States and Territories I have accepted the Commonwealth Grants Commission (CGC) recommendations on the GST revenue split across the States and Territories for 2015-16. 

The Government understands the fiscal difficulties facing Western Australia, particularly given the historically low GST relativity of 30 cents in the dollar and the significant falls in iron ore royalties.

These two things have had a major impact on Western Australia’s ability to fund critical infrastructure. 

The Government is providing $499.1 million for infrastructure projects to boost jobs and growth in Western Australia. The payment will be exempt from the GST distribution system and will not have any future bearing on Western Australia’s GST rate.

This agreement with Western Australia will have no impact on the level of GST provided to the other States and Territories under the CGC recommendations.

I am committed to ensuring the GST distribution system is fair and equitable.

I encourage my State and Territory counterparts to engage in the Federation White Paper process to discuss ways in which we can improve the GST distribution system.

View the CGC report.