Economists Warn GST System Punishes Success, Rewards ‘Populist’ Mediocrity

The annual debate over the redistribution of GST continues after Victoria received an extra $3.6 billion.

Australian dollar coins and banknotes in Melbourne, Australia on April 4, 2024. AAP Image/Joel Carrett

Days after the Commonwealth Grants Commission (CGC) released its latest GST redistribution decision, economists are renewing their critique of the system, and how it encourages states not to make tough decisions to improve productivity.

The report grants Victoria an additional $3.6 billion while slashing Queensland’s share by $1.2 billion.