Debt-laden ‘poor state’ Victoria to get GST bailout

Michael Read, Paul Karp, Tom Rabe and Gus McCubbing

Mar 14, 2025 – 1.40pm

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Major states will be forced to pay for Daniel Andrews’ pandemic largesse and subsidise Victoria for the first time in the annual GST carve-up, as economists urge the state’s new treasurer to rein in spending and get her finances in order.

The Commonwealth Grants Commission said on Friday that Victoria’s GST take will increase by $3.9 billion to $28 billion – the highest of any jurisdiction – as the fiscally challenged state drew more from the reserve than it notionally deserved on a population basis. The overall GST pool in 2025-26 would rise by $4.5 billion to $95.2 billion.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.

Paul Karp is The Australian Financial Review’s NSW political correspondent.

Tom Rabe is the WA political correspondent, based in Perth.

Gus McCubbing is a journalist at the Australian Financial Review in Melbourne.