Victoria’s population boom delivers $1.8 GST windfall

VICTORIA’S booming population has delivered the state a massive $1.8 billion windfall for the Andrews Government’s election-year Budget.

VICTORIA’S booming population has delivered the state a massive $1.8 billion windfall for the Andrews Government’s election-year Budget.

Nearly $17 billion in GST revenue will be sent to Victoria out of the $65.8 billion pool of cash that is split between the states and territories.

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Victoria’s population grew by 147,000 in the last financial year, the greatest increase ­recorded by any state in history, which forced up the state’s share of overall tax revenue. But the federal government is still considering major structural changes to the GST carve-up, which could see ­Victoria lose as much as ­$1 billion a year.

Victorian Treasurer Tim Pallas says it is “about time Victoria received a fairer share of the GST”.

The split for the next ­financial year, revealed by the independent Commonwealth Grants Commission, will give Victoria back almost 99c in the dollar, up from 93c.

The commission’s formula meant $528 million of the extra $1.8 billion stemmed from the lack of federal infrastructure funding for Victoria.

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Victorian Treasurer Tim Pallas welcomed the extra money and said it was “about time Victoria received a fairer share of the GST”.

“But it doesn’t change the fact that Victorians continue to get short-changed by Malcolm Turnbull on infrastructure funding,” he said.