Review of Costly 2018 GST Reforms: Sustainability, Equalisation, and State Policy Impacts

• The Productivity Commission is reviewing the 2018 GST distribution reforms in Australia.
• The reforms included a new equalisation benchmark, a relativity floor, permanent top-up payments, and a “No Worse Off” guarantee.
• These changes have cost the Commonwealth $22.7 billion so far, with an additional $26.3 billion projected by 2028-29, mainly due to heavy use of the No Worse Off payments.
• The review will assess the reforms’ fiscal sustainability, effectiveness in equalisation, and impact on state policy and service delivery.
• Submissions are due by 27 February 2026, with reports expected in August and December 2026.

Source: pc.gov.au

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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