GST revenue grants
5 GST revenue grants
Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a payment year, of a grant worked out using the formula:
where:
adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.
adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.
GST revenue means the GST revenue for the payment year (see section 6).
pool top‑up means the pool top‑up for the payment year (see section 8A).
Additional financial assistance for transitional payment years
In this section:
transitional year means the 2021‑22 payment year, the 2022‑23 payment year, the 2023‑24 payment year, the 2024‑25 payment year, the 2025‑26 payment year or the 2026‑27 payment year.
If the sum of:
the amount of the grant to which a State is entitled under subsection (1) for a transitional year (the base year); and
the amount of the grant to which the State is entitled under subsection (1) for each transitional year (if any) before the base year; and
the amount of the grant (if any) to which the State is entitled under this subsection for each transitional year (if any) before the base year;
is less than the sum of the amounts of the grants to which the State would, in the Minister’s opinion, have been entitled for the base year, and each transitional year (if any) before the base year, under this section if the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018 had not been enacted, the State is entitled, subject to this Act, to the payment, by way of additional financial assistance for the base year, of a grant equal to the difference.
The Minister must, in forming an opinion under subsection (3):
consult with each of the States; and
have regard to any report of the Commonwealth Grants Commission that the Minister considers relevant.
This Act’s bill:Explanatory memorandumSecond reading speech
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