All Australians deserve a fairer GST

We support practical reform that gives equitable outcomes for NSW, and all other states and territories.

Family in verandah

Transparent, equitable and sustainable

GST revenue helps fund the schools, hospitals, roads, public transport and essential services Australians rely on every day.

Since its inception, GST revenue has been distributed to help make sure people can access comparable government services no matter where they live. This principle remains important and NSW supports it.

But the current system is no longer delivering an equitable outcome.

The 2018 changes were intended to improve the GST distribution system and make it more sustainable and predictable. NSW welcomes the Productivity Commission’s findings that those changes have instead made it less equitable, less consistent and more complex.

The 2018 changes are expected to cost the Australian Government $28.8 billion to 2025–26.

NSW receives less than its population share of GST revenue, while carrying growing responsibilities for the infrastructure and services that support Australia's largest economy and biggest population.

This is not about special treatment for NSW.

NSW recognises that every state and territory has different needs. We support a system that helps all Australians access quality public services, wherever they live.

But we also believe the GST system should be easy to understand, fiscally sustainable and equitable for every state.

That is why NSW has called on the Australian Government and all states and territories to work together towards a transparent, equitable and sustainable system.

NSW stands ready to work constructively with all governments to:

  • achieve a transparent and simple GST distribution system.
  • provide certainty for future budgets.
  • support economic growth and productivity.
  • remain sustainable for future generations.

Have your say

The Productivity Commission invites interested people and organisations to make a written submission or a brief comment.

The Productivity Commission is seeking submissions on the future of GST distribution arrangements.

The NSW Government has made its views known, but this inquiry is also an opportunity for individuals, businesses, community organisations and experts to share their perspective.

If you'd like to contribute to the national discussion, you can make a submission or a brief comment directly to the Productivity Commission.

Submissions are due to the Productivity Commission by Wednesday 30 September 2026.

Make a submission

Make a brief comment

Related links from the Productivity Commission:

NSW Government initial submission to the Productivity Commission inquiry into the 2018 GST distribution reforms

Cover of report

NSW’s preferred approach is the phased introduction of an equal per capita distribution of GST grants with top ups for fiscally weaker states to achieve reasonable equalisation.

Change to the GST distribution system will need national consensus. 

NSW has proposed an alternate position – to return to the pre-2018 GST distribution system with a relativity floor of 0.50 funded by the Australian Government.
 

Read our submission to the Productivity Commission (PDF 715.69KB)

Media releases

Ministerial media release

Productivity Commission highlights need for GST overhaul

The Commonwealth Productivity Commission’s interim report into the GST distribution system is historic.  

CEDA NSW State of the State Keynote Address

Chris Minns, Premier of NSW, Wednesday 29 July 2026, The Fullerton, 1 Martin Place, Sydney.

Address to The McKell Institute

Daniel Mookhey, Treasurer of NSW, Sydney, Wednesday 20 May 2026.
Ministerial media release

GST grants formula should be simple, predictable and transparent

The Minns Labor Government is proposing wholesale change to the annual GST carve-up that continues to rip off the people of New South Wales.
Ministerial media release

NSW loses out again in GST carve-up

New South Wales will receive its lowest GST relativity share since the GST was introduced, leaving Australia’s largest state with $1.4 billion less GST revenue in 2026-27 than Victoria, despite having 1.5 million more people.

More on a fairer GST

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