Productivity Commission Seeks Feedback on Effectiveness of 2018 GST Reform and Revenue Distribution

• The Productivity Commission released an issues paper for consultation on the operation of the 2018 GST reforms.
• The 2018 reforms changed GST revenue distribution to stabilize state funding, introduced a new equalization benchmark, a minimum relativity, and a perpetual Commonwealth top-up.
• States are guaranteed “no worse off” payments during a six-year transition period (2021-22 to 2026-27).
• The consultation seeks feedback on the effectiveness, sustainability, and possible alternatives to the current GST arrangements, as well as their interaction with other Commonwealth payments.
• Consultation closes February 27, 2026; interim report due August 28, 2026; final report due December 31, 2026.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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