Horizontal fiscal equalisation has been a core concept for Australia in one form or another since Federation. This occasional paper explores whether the GST distribution system is too complex. It finds there is a trade-off between assessing states’ relative fiscal capacities as comprehensively as possible and simplifying assessment methods.

Each year, the Federal Treasurer asks the Commonwealth Grants Commission to update the relativities used to distribute revenue from the GST pool to state and territory governments. This report presents the recommended GST relativities for 2024–25.

This paper explains how the Commission assesses state investment needs by using schools investment as an example. It provides a step-by-step guide to the assessment method, and highlights the influence of user-populations and what states collectively spend on infrastructure types.

This paper explains the Commission’s framework for determining which Commonwealth payments to include when calculating a state’s GST revenue.

Each year, the Commonwealth Treasurer asks the Commission to provide recommendations for the distribution of the Goods and Services Tax (GST) pool among the states and territories (states). This paper provides an overview of each state’s GST needs over the past decade, and the main reasons for changes.