Investor Presentaiton
Distribution of GST
States and territories (states) receive all revenue collected by the Australian Government via the Goods and Services Tax (GST).
It is allocated using the principles of horizontal fiscal equalisation, which is designed to equalise the states' fiscal capacity
to provide public services to the same standard.
Under this system, some states with below average revenue raising capacity or above average spending requirements
receive a larger share of GST (and vice versa).
■ The independent Commonwealth Grants Commission determines the annual allocation across the states.
Examples of differences between states to raise revenue and their expenses
Revenue
Population
Amount of minerals
within a state's borders
Affects the amount of
royalties collected
Expenses
Number of elderly people
Requires more health services
As at 31 December 2022
Number and value of
residential and commercial
land or properties
Affects the amount of
Number and location of
remote and regional areas
It is more expensive to provide
services and infrastructure in
these locations
Western
Australia
2.8m
land tax and stamp
duty collected
Northern
Territory
0.3m
QUEENSLAND
5.4m
South Australia
1.8m
New South
Wales
8.2m
Victoria
6.7m
II
Wages paid by businesses
Number of school children
Affects the amount of
Dictates the number of
Tasmania
payroll tax collected
schools and teachers needed
0.6m
Australian
Capital
Territory
0.5m
QTC
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