The federal government has commissioned a review of the distribution of GST revenue to the states and territories. The announcement coincided with Prime Minister Julia Gillard’s visit to Western Australia yesterday – a state which says they’ve been penalized because of the mining boom.
The government says the review will lead to a simpler, fairer, more predictable and more efficient GST distribution to states and territories… but will it ?
Catherine Zengerer was joined by Professor John Quiggin from the University of Queensland to discuss the issue. She asked Professor Quiggin what Treasurer Wayne Swan means by the term “horizontal fiscal equalisation.”