NSW slams ‘absurd’ GST system as WA gets another $6.2b

Michael Read, Samantha Hutchinson, Tom Rabe and Gus McCubbing

Updated Mar 12, 2024 – 5.48pm, first published at 2.00pm

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NSW Treasurer Daniel Mookhey has demanded the current “absurd” system for carving up GST revenue be reformed after his state’s latest allocation was slashed and Western Australia reaped an extra $6.2 billion.

Debt-laden Victoria was the biggest winner in the annual distribution of the GST pool, which will increase $4.8 billion to $89.5 billion in financial year 2025, the Commonwealth Grants Commission said on Tuesday.

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. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

Samantha Hutchinson is the AFR's National Reporter. Most recently, she was CBD columnist for The Sydney Morning Herald and The Age. Before that, she covered Victorian and NSW politics and business for The Australian, the AFR and BRW Magazine. Connect with Samantha on Twitter. Email Samantha at samantha.hutchinson@afr.com.au

Tom Rabe is the WA political correspondent, based in Perth. Connect with Tom on Twitter. Email Tom at tom.rabe@nine.com.au

Gus McCubbing is a journalist at the Australian Financial Review in Melbourne. Connect with Gus on Twitter. Email Gus at gus.mccubbing@afr.com