GST WA: What would changes to the GST distribution mean?

The WA Government has lodged its submission to the Productivity Commission’s inquiry into the 2018 GST Reforms, alongside a People’s Submission representing the voices of more than 6,000 Western Australians — read the reports here. 

The Productivity Commission is preparing its interim report to the Australian Government, to be released on 14 August 2026, with a final report by the end of the year. 

The Productivity Commission’s recommendations aim to assist the Australian Government to decide if the GST Reforms made in 2018 are working as they should, or if the way GST is shared between States could be improved.   

More information will be provided on this website as it becomes available. 

To understand what potential changes to Western Australia’s GST share would mean we should first look at what we currently have allocated.

WA’s share of the GST

The money collected in Australia from GST is distributed to States and Territories based on how much they need to spend and how much they can raise on their own.

The GST Reforms introduced in 2018 have improved the fairness for Western Australia. Despite this WA still receives only 82% of its per person share of the GST revenue.

Without these reforms, WA would receive just 24% of its population share — or about $6 billion less each year.   

The following map shows the GST grants on a per person basis. 

Even with the 2018 Reforms, WA receives the equal lowest share with New South Wales at $3,036 per person.  Queensland receives 6% more, Victoria 29%, ACT 42%, and South Australia 66% more. Tasmania’s share is almost 2.3 times WA’s and the Northern Territory more than 6 times WA’s share.

Without the GST Reforms, WA’s GST grants per person would be just $890 - less than one third of New South Wales, about one eighth of Tasmania’s and one twentieth of the Northern Territory’s.  

 

What does the current GST share mean for WA

Key facts: 

• WA’s GST funds our local hospitals and schools, and it’s also invested in essential infrastructure like roads, ports and power - supporting WA projects that drive the national economy and produce almost half of the nation’s exports.  
• WA receives only 9.1% of the GST share, and if the GST Reforms were withdrawn, WA’s share would fall to only 2.7%, yet:
  • it is home to over 11% of the national population;
  • we produce over 45% of Australia’s goods exports; and
  • we make up 17% of the national economy.
• WA has the largest land mass in Australia but receives less GST than smaller States for regional and remote costs. 
• In 2024-25, WA’s net contribution to the nation was over $12,000 per person – more than 11 times that of NSW (at around $1,050 per person) – the only other State making a positive contribution.

How WA’s GST contributes to the rest of Australia 

Key facts:

• WA subsidises other States via the GST system by around $2 billion per year even with the reforms. Since the GST Reforms began, WA has still contributed $21 billion to the other States.
• WA produces over 45% of Australia’s goods exports but only receives around 9% of the GST share. Without the 2018 GST Reforms, WA would receive only 2.7%.
• WA produces Australia’s highest Gross Domestic Product per capita ($155,644) but receives the equal lowest GST share per capita ($3,036).
• Without the GST Reforms, WA retains only 11% of its iron ore and lithium royalties, with the other 89% given to other States. In comparison, other major mining States keep up to 98% of their mining royalties.
• Since the GST was introduced, WA has contributed $50 billion to the other States and Territories through the GST system.

A strong WA economy means a stronger national economy. WA’s GST is working for all of Australia.

Keeping WA’s fair share of GST.

WA isn’t seeking a greater share. By keeping the current GST distribution Western Australia can:

• Better fund services like health, education and police across WA, including in regional and remote areas, which cost more to deliver
• Invest in social infrastructure like new and expanded schools and hospitals, social and affordable housing
• Provide additional investment in economic infrastructure like ports, utilities and roads that grow not just the WA economy but the national economy
• Continue to grow our strong exports globally with WA already accounting for 45% of national goods exports
• Keep our economy strong, which means more jobs and a better standard of living
• Continue to contribute to Australia’s Gross Domestic Product, the GST and other revenue collections to the Commonwealth, which benefits all of Australia.

How can I take action?

Your voice can make a difference while the Productivity Commission review is taking place.

Find some of the ways you can still get involved.

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