Grants Commission Cuts $329 Million GST Funding In 2019-20 To South Australia

Grants Commission Cuts $329 Million GST Funding In 2019-20 To South Australia

South Australia Treasurer Rob Lucas

$329 Million GST Write-Down For Next Year

Victor P Taffa

Latest figures released by the independent Commonwealth Grants Commission (CGC) estimate a cut of $329 Million next year (2019-20) in total GST funding to South Australia.

CGC has released its 2019 Relativity update which estimates that South Australia will get $6,946 Million in GST funding next year, compared with the estimate of $7,275 Million included in South Australia’s Mid-Year Budget Review, released in December 2018.

These Relativity updates are issued every year and the CGC has amended our relativity factor from 1.477 to 1.465 which, together with a smaller total GST pool has led to the significant reduction in GST funding to South Australia.

“We won’t know the final estimate of GST funding for next year until the Commonwealth Government releases its budget in April this year.” Treasurer Rob Lucas said.


“Given these relativity updates are issued every year, it is not possible to predict what the CGC will decide for future years. The CGC Report does not include forecasts for any future years.”

“Estimated cut in GST funding for this year (2018-19) is much smaller at about $72 Million and the State Government remains committed to delivering a surplus budget.” Treasurer Lucas said.

“There is no question that the forecast significant cut in GST funding next year will make the task of budget repair even more challenging.”

“Clearly, it is imperative that all departments deliver on the important savings task which were outlined in last year’s budget and we will also need to increase revenue by growing our economy as promised.”

“Union bosses will also need to accept that taxpayers will not be able to afford excessive enterprise bargaining demands which go beyond what the budget is able to afford.” Treasurer Lucas said.



GST                 Goods and Services Tax