The Productivity Commission (Commission) has released its report into the effect of Horizontal Fiscal Equalisation (HFE) on productivity, efficiency and economic growth, which will inform changes to the way in which the revenue collected from the GST is shared between the states and territories.

In response to Commission’s report, the Treasurer, the Hon Scott Morrison MP, said that the Federal Government will introduce changes to reinforce and protect the ‘fair go’ system used to distribute GST, which provides protection to smaller states and removes the volatility in how GST revenue is distributed by removing the impact of significant economic events such as the mining boom.