img

New laws deliver a fairer and more sustainable GST system

Media Releases

Date : 14 November 2018

Author: The Hon. Josh Frydenberg MP

THE HON JOSH FRYDENBERG MP
Treasurer

MEDIA RELEASE

14 November 2018

NEW LAWS DELIVER A FAIRER AND MORE SUSTAINABLE GST SYSTEM

Every state and territory will be better off under new laws passed by Parliament today that will deliver a fairer and more sustainable distribution of the Goods and Services Tax (GST).

Under our reforms to the GST, an additional $9 billion in extra untied funding will be delivered to the states and territories over 10 years and an additional $1 billion in perpetuity once fully implemented.

The former GST distribution system was not working as intended, with Western Australia recently receiving just 30 cents in the dollar, while other states and territories with far smaller populations received more.

This was not only unfair and unsustainable, but it threatened the integrity of the GST system.  That’s why we asked the Productivity Commission to review the GST distribution system.

The Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Bill 2018 that was passed by the Senate today will:

Payments will be verified annually by the Commonwealth Grants Commission over the transition period and any adjustments made accordingly. The Government’s additional contribution to the GST pool will not be offset or partially offset by a decrease in other grant funding to the States and Territories.

Delivering a fairer and more sustainable GST distribution system is part of our plan for a stronger economy, helping to deliver the essential services Australians rely on.

@JoshFrydenberg on Twitter JOSH ON TWITTER