The release of the Commonwealth Grant Commission’s GST Relativities for 2025-26 show Western Australia still receives the lowest share of GST per capita in the country.
WA’s guaranteed floor of 75 cents per dollar collected of GST will remain for the coming financial year.
Victoria’s share is set to increase from 96 cents to $1.07 per dollar of GST, at the expense of revenue flows to Queensland and New South Wales.
CCIWA Chief Economist, Aaron Morey, said WA continues to subsidise weaker economies.
“The reforms in 2018 thankfully softened the blow and we now have a system that is somewhat fairer, but the fact remains WA still gets the smallest return in the nation on every dollar of GST revenue we create,” he said.
“States like Victoria should be focusing on developing their own economies like WA has done.”
Mr Morey said that it is in the nation’s interest to retain the 2018 reforms.
“The GST system prior to 2018 disincentivised states from further developing their own economies.
“The deal to lock in the 75 cent floor was a significant win for WA and recognised the oversized contribution our state makes to the national economy.
CCIWA has welcomed previous commitments from Prime Minister Anthony Albanese that there will be “no change” to WA’s share of the GST.
