NSW has suffered the biggest loss, $850 million, of any state or territory from an annual carve-up of GST revenue shares.
It’s the biggest single year loss for any state since the tax’s introduction, says NSW treasurer Gladys Berejiklian.
“We are essentially a victim of our own success when it comes to GST revenue,” Ms Berejiklian said in a statement on Thursday night after the Commonwealth Grants Commission, which allocates the revenue collected from the GST, revealed the winners and losers for the 2016/17 financial year.
NSW’s stronger economy, driven by the property market, has led to a smaller slice of the GST pie with the revenue going to other struggling states and territories.
The carve-up has also left the Northern Territory and Tasmania with smaller slices than last year.
The main beneficiary will be Queensland, which is expected to raise an additional $520 million because of its reduced capacity to raise coal royalties and the state’s historically high natural disaster expenses.
Victoria’s increased share from 22.4 per cent to 22.9 per cent – an additional $248 million – was due to an increase in population growth, leaving the state with a greater need for new infrastructure, according to the report.
Victorian Treasurer Tim Pallas said Victoria’s increased share was driven in part by the state’s strong population growth.
“While this modest increase is welcome, our state continues to be shortchanged and Victorians continue to subsidise the GST share of other states, with approximately $1.3 billion redistributed away from Victoria in 2016-17, or around $218 for every Victorian,” he said.