GST

As the government seeks to recoup the hundreds of billions of dollars it has spent on its Covid-19 recovery efforts, consultancy firm PwC has recommended a rethinking of the GST

If the Commonwealth government’s proposed reforms for the distribution of the GST revenue between the States and Territories is implemented, about a billion dollars a year of additional commonwealth funds will be spent to ensure “no state will be worse off”. But where the extra funds will come from is left to the imagination.

​Treasurer Scott Morrison has promised big states will no longer be unreasonably subsidising small states in a new GST carve-up with funding boosts totalling $5.2 billion over the next eight years.