The Prodcast with Richard Aedy
Aug 27, 2026 · 17 min · 8 segments
PC Commissioner Angela Jackson joins Richard Aedy to unpack the Australian Productivity Commissions' interim report of the GST distribution inquiry - discussing the horizontal fiscal equalisation…
Angela JacksonGuest
Richard AedyHost
Because of the mining boom of the early 2000s, Western Australia found itself with a lot of money, and so much that it became the fiscally strongest state.
So it determines, we look at on average how much do states need to deliver this average level of services, and if you fall well below that, you get a higher balancing item to get you up, and if you only fall a little bit, your balancing item is reduced.
So what we saw is through the mining boom, obviously iron ore revenue started coming in, the royalties, uh, increased, so the own-source revenue in Western Australia went up significantly.
Uh, it went down to a relativity of zero point three, so that means effectively receiving around thirty percent of their population share.
The Western Australian politicians were not happy, and in twenty eighteen, the Morrison government decides to make some changes.
So the first is that no state can receive less than the fiscally stronger of New South Wales or Victoria.
What it effectively means today is that Western Australia is guaranteed at least the same share as New South Wales, as the fiscally stronger of New South Wales and Victoria.
So what that means is no state could fall below zero point seven five, uh, in terms of the GST share.
Zero point seven five is, is what? You get funded for, for three-quarters of a person for each person you've got, right?
Because of the mining boom of the early 2000s, Western Australia found itself with a lot of money, and so much that it became the fiscally strongest state.
So it determines, we look at on average how much do states need to deliver this average level of services, and if you fall well below that, you get a higher balancing item to get you up, and if you only fall a little bit, your balancing item is reduced.
So what we saw is through the mining boom, obviously iron ore revenue started coming in, the royalties, uh, increased, so the own-source revenue in Western Australia went up significantly.
Uh, it went down to a relativity of zero point three, so that means effectively receiving around thirty percent of their population share.
The Western Australian politicians were not happy, and in twenty eighteen, the Morrison government decides to make some changes.
So the first is that no state can receive less than the fiscally stronger of New South Wales or Victoria.
What it effectively means today is that Western Australia is guaranteed at least the same share as New South Wales, as the fiscally stronger of New South Wales and Victoria.
So what that means is no state could fall below zero point seven five, uh, in terms of the GST share.
Zero point seven five is, is what? You get funded for, for three-quarters of a person for each person you've got, right?
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