'Fair and overdue': Malcolm Turnbull explains the government's GST changes for states

Federal treasurer Scott Morrison yesterday announced changes to how the GST is distributed to the states and territories in the biggest shakeup to the consumption tax since it was introduced 18 years ago.

But the reforms will come at a cost to the Budget bottom line to ensure, with the Commonwealth pledging an additional $6.6 billion over the next seven years as the changes are fully implemented by FY26-27 – and $9 billion over the next decade.

Central to government’s plan amid the ongoing fight by state treasurers about the share of GST compared to the revenue they generate is a promise no state will receive less than 75 cents in the dollar.

Under the old formula, Western Australia’s share fell to below 30 cents in the dollar in the wake of the mining boom.

On top of that, the government has pledged that no state or territory will be worse off than they would have been under the current arrangements.

This morning, Malcolm Turnbull took to Facebook to explain the changes:

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