GST funding carve-up

March 4, 2008, 8:31pm,  147 views

Four of the six states have so far criticised the Commonwealth Grants Commission’s distribution of GST revenue.

The resources boom has pushed Western Australia ahead of New South Wales as the state most capable of raising money for the first time this century.

And mining has pushed Queensland’s earning capacity up.

NSW and Victoria will get the largest allocations, but say they are subsidising the other states. Western Australia will receive less money than last year.

Tasmania will also receive less money, but accepts the funding formula as fair. There has been no word so far from South Australia.

With most states opposing the distribution you have to think the commission must have got it right. It says something about Australia’s federation though.