Commonwealth reforms to how Goods and Services Tax (GST) revenue is distributed to the states and territories came into effect in 2021–22. Once the changes are fully implemented in 2027–28, Victoria is expected to lose significant amounts of GST revenue. Until then, states and territories (hereafter states) are shielded from the effects of the reforms by a no-worse-off guarantee that ensures states receive GST revenue based on the better of the old or new system.

This inquiry’s terms of reference asked the Legislative Assembly’s Economy and Infrastructure Committee to examine the adequacy of Commonwealth support for Victoria, specifically Victoria’s GST share and the impact of the end of the no-worse-off guarantee. The Committee also chose to consider the levels of Commonwealth investment in Victorian infrastructure, Commonwealth assistance to local government and Commonwealth support for Victoria’s recovery from the effects of the COVID-19 pandemic.