States to share in $166b of federal funds

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The states are set to share in $166.4 billion from the federal government over the next financial year.

The budget papers released on Tuesday reveal the Morrison government will permanently boost the size of the GST pool to be distributed among the states each year.

The injection will be $600 million a year until 2023/24 and $250 million a year from 2024/25.

In 2022/23, the states will get $80 billion from the GST, out of $84.8 billion in general revenue assistance.

It is the second year in the six-year transition to the updated GST distribution system, which will ensure that no state will have a per capita GST share lower than the fiscally stronger of NSW or Victoria.

Payments to the states for specific purposes will total $81.6 billion – down $9.3 billion due to the unwinding of temporary COVID-19 measures and bringing forward of grants for local government.

These payments cover agreements in areas such as housing, health, infrastructure and schools.

The GST carve-up 2022/23 (including top-ups and transition payments):

NSW $25.5 billion

VIC $18.9 billion

QLD $17.8 billion

WA $5.9 billion

SA $7.4 billion

TAS $3.2 billion

ACT $1.5 billion

NT $3.7 billion


Paul Osborne
(Australian Associated Press)


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