CANBERRA, ACT, Sept. 24 -- The Treasurer of Australia issued the following media release:
Today we've released the terms of reference for the Productivity Commission Inquiry into the 2018 changes to the Goods and Services Tax distribution required under legislation.
This work will ensure we have the best possible system to pay for the schools, hospitals and essential services Australians need and deserve.
It's about making sure these arrangements are delivering the best value for states and territories, as well as hardworking Australian taxpayers.
In 2018, the Parliament legislated changes to the independent, arms‑length GST revenue distribution process. This was the first significant change made to the GST since it was introduced in 2000.
The 2018 legislation requires that the operation of the changes be reviewed by the Productivity Commission by the end of 2026.
The Productivity Commission Inquiry will look at ways in which the federal financial relations system can best promote fiscal sustainability across the states and territories and the Commonwealth.
The PC will investigate whether the current arrangements are working efficiently, effectively and as intended, while being cognisant of the Commonwealth's policy commitments in relation to GST distribution, and with Terms of Reference that are deliberately broad enough to enable it to look into issues raised by states and territories.
I have asked the Productivity Commission to invite the public to make submissions on any matter raised by the Terms of Reference.
The Productivity Commission will provide an interim report to Government by 28August 2026 and a final report before 31December 2026.
All government budgets are under pressure and that's why the Commonwealth is kicking in billions more dollars to boost state and territory budgets in the national interest.
Over the next fouryears, this includes investing $137.3billion in the Better and Fairer Schools Agreement, $53billion in the Land Transport Infrastructure Projects Agreement, $9.8billion in the National Skills Agreement, and $7.5billion for the National Agreement on Social Housing and Homelessness.
Responsible economic management is a hallmark of the Albanese Government.
At the same time as we're rolling out tax cuts for every taxpayer, we've managed to get the budget in much better nick, delivering the biggest turnaround in a parliamentary term in history by banking revenue and trimming Liberal rorts and waste, but the Commonwealth budget is still under pressure.
We'll continue to do what we reasonably and responsibly can to ease the burden on states and territories, acknowledging the difficult budgetary position we inherited after a wasted decade under our predecessors.
Disclaimer: Curated by HT Syndication.
