Monday, March 16, 2026

NSW GST 82 cents

Former Treasurer Mike Egan would be less charitable to his labour federal colleagues and the Commonwealth Grants Commission than Chris … Mike was a real fighter for the Shire, Sydney, and for the people of New South Wales 

Biggest winners and losers in $103 billion GST carve-up

Premier Chris Minns has slammed the GST distribution system as being “past its use-by date” after the latest carve-up revealed NSW will receive $1.7 billion less than Victoria from the national GST pool, despite having about 1.5 million more people.
The Commonwealth Grants Commission, which oversees how the $103 billion national GST pot is allocated, said the NSW share of GST will fall to just 25.5 per cent of the national pool, even though the state has about 31 per cent of the Australian population.
A key reason for NSW’s lower share was its “above-average growth in land values” which gave the state more capacity to raise more land tax revenue relative to others, the commission said. NSW also spent less on natural disaster relief than it had previously estimated.
Western Australia is a big winner from the latest distribution; its share of GST will rise from 8.3 per cent to 9.1 per cent, even though it is the strongest state financially.
Queensland will receive the largest dollar increase in GST distribution of $1.7 billion.
Victoria’s overall GST share fell slightly, but it will still receive $1.5 billion more in 2026-27 than the previous year. NSW will receive an extra $316 million – the lowest increase of the mainland states.

GST allocation by state/territory

Table with 5 columns and 8 rows. (column headers with buttons are sortable)
NSW
$26.12b
$2,990
25.5%31%
Victoria
$27.87b
$3,858
27.2%25.7%
Queensland
$18.44b
$3,183
18%20.6%
Western Australia
$9.34b
$2,990
9.1%11.1%
South Australia
$9.55b
$4,959
9.3%6.8%
Tasmania
$3.97b
$6,869
3.9%2.1%
ACT
$2.1b
$4,239
2%1.8%
Northern Territory
$5.14b
$19,122
5%1%
Source: Commonwealth Grants Commission
Premier Chris Minns called for urgent reform to the way the GST is distributed.

Chris Minns has slammed the national GST distribution system as "past its use-by date" following a 2026-27 review that left NSW with a historically low share of funds. Minns argues the current formula is unfair, with NSW receiving only 82 cents for every dollar it contributes, losing out by $1.4 billion compared to Victoria, despite having a much larger population.

  • Key Complaint: Minns claims NSW is receiving disproportionately less funding compared to other states, specifically noting NSW will receive $1.7 billion less than Victoria, despite hosting a significantly larger population.
  • The 82-Cent Deal: According to reports, for every dollar in GST revenue generated in NSW, the state is expected to receive just 82 cents in return in the 2026-27 financial year.
  • Call for Reform: The Premier has called for a "fairer" system, advocating for a model that places population size at the center of the distribution method rather than the existing formula.
  • Context: These comments follow the latest Commonwealth Grants Commission findings, which maintain that Western Australia will continue to get a high share of GST revenue, leading to significant "no worse off" top-up payments for other states from the federal budget.
Minns' government is struggling with persistent budget deficits and has criticized the current structure as leaving the state's budget under intense pressure


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