The Productivity Commission’s Interim Report has delivered a blunt verdict on the 2018 GST distribution changes: they haven’t worked. The Commission finds the reforms have weakened fiscal equalization, created perverse outcomes, increased costs to the Commonwealth, added complexity, and disproportionately benefited Western Australia while offering no real stability for other states. It also debunks long‑standing myths about who “pays” GST and who “gets it back”. With three clear options on the table, the Federal Government now faces a major test of its commitment to equity and responsible budgeting — and both major parties must decide whether they will prioritise national fairness over political expediency.

2026-08-14 PC Interim Report on 'The Worst Public Policy Decision of the 21st Century Thus Far'