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NT secures extra $248m in proposed 2025-26 GST distribution

See how the NT compares to other states when it comes to our share of the GST pie.

New GST carve-up branded a ‘dirty deal’

The NT has secured an extra $248 million from the Commonwealth in this year’s GST distribution, welcomed by the Treasurer as a “big win for the Territory”.

The extra revenue is largely thanks to the GST pool growing by $4bn to $95bn in 2025-26, as the NT’s slice of the pie remains relatively steady.

Every state except Queensland will receive more under the distribution recommended by the Commonwealth Grants Commission on Friday.

Queensland’s $1.2bn fall compared with last year is due to significant growth in its capacity to earn coal royalties, both from higher coal prices and from an increase in the average national coal royalty rate.

Victoria by comparison will receive an extra $3.7bn in GST, due to the absence of a significant coal industry in the state and a rebound in its population growth post pandemic.

NT Treasurer Bill Yan. Picture: Pema Tamang Pakhrin
NT Treasurer Bill Yan. Picture: Pema Tamang Pakhrin

Home to only 0.9 per cent of the population, the NT will receive 4.8 per cent of the GST share.

Put another way, for every dollar the NT contributes, it receives $5.15 back.

That equals $17,605 per person – more than double Tasmania ($6290 per person) and almost seven times Western Australia ($2563 per person).

The significantly higher per capita share attempts to compensate for the Territory’s relatively small population, higher costs of providing services, and unique challenges such as remote communities and infrastructure needs.

NT Treasurer Bill Yan welcomed the funding share as “a crucial step in helping us get the budget back on track”.

“The CLP government has fought hard for the NT’s fair share of GST, and today’s $248 million boost is a big win for the Territory,” he said.

“The Territory faces unique economic and social challenges which have been recognised by the federal government in this year’s distribution.”

Roughly half of the NT’s revenue comes from GST, about a quarter from other federal grants, and the rest from own-source revenue.

Originally published as NT secures extra $248m in proposed 2025-26 GST distribution

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Original URL: https://www.heraldsun.com.au/news/northern-territory/nt-secures-extra-248m-in-proposed-202526-gst-distribution/news-story/60ff3e1bdf9deb710433924e7de080ae