Recent Commonwealth reforms changed how revenue from the Goods and Services Tax (GST) is distributed to states and territories. The inquiry examined the impact of these reforms on Victoria’s GST allocation.
It also considered the impact of the end of the ‘no worse off’ guarantee. The guarantee aims to ensure no state is disadvantaged by the shift to the new system. It will expire in 2026–27 when the transition period ends
On 4 August 2021, the Legislative Assembly agreed to the following motion:
That this House refers:
an inquiry into Commonwealth support for Victoria to the Economy and Infrastructure Standing Committee for consideration and report no later than 30 March 2022 and the Committee should consider various issues associated with the inadequacy of Commonwealth support for Victoria, including, but not limited to:
a) Victoria’s share of federal GST funding; and
b) the expiration of the ‘no worse off’ GST guarantee.