Overview
- The Commonwealth Grants Commission set Western Australia’s relativity at 0.82 under the legislated floor, equal to New South Wales and far above the roughly 0.24 it would receive under standard calculations.
- No‑worse‑off and GST pool top‑up payments are estimated at $6.6 billion in 2026–27, up from $6.1 billion, increasing the burden on the federal budget.
- New South Wales’ share drops to 25.5% as Queensland rises to 18.0% and Victoria edges down to 27.2%, though every jurisdiction receives more in dollar terms as the total pool grows to about $108 billion.
- Critics, including economist Saul Eslake, argue the arrangement has shifted tens of billions of dollars and could exceed $60 billion over 11 years, questioning equity given WA’s budget surpluses.
- State leaders on the east coast intensify calls for reform, with NSW, Victoria and Queensland pointing to revenue capacity assessments and recent revisions as evidence the current split needs overhaul.