<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/western-australia" rel="" target="" title="Western Australia"><span>Western Australia</span></a><span> will be handed an extra $6.6 billion by the federal </span><a href="https://www.9news.com.au/government" rel="" target="" title="government"><span>government</span></a><span> next financial year thanks to a </span><a href="https://www.9news.com.au/national/gst-deal-wa-advertising-campaign-productivity-commission-review-explained/2032e532-b8fa-4d49-bb13-e7bac2292608" rel="" target="" title="controversial deal labelled the worst piece of public policy this century"><span>controversial deal labelled the worst piece of public policy this century</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Commonwealth agency responsible for distributing GST payments today announced how much each state and territory will receive in 2026-27.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The biggest winner will once again be WA, despite it boasting the strongest state budget in the country.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/powerball-results-winning-numbers-melbourne-man-deleted-lifechanging-50-million-jackpot-email/54275d79-9675-49d6-b333-13a46c383506" target="_blank"><strong><span>Melbourne man deleted 'life-changing' $50 million Powerball jackpot email</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It will receive $9.3 billion, more than $1.3 billion more than it was allotted last year and a whopping $6.6 billion more than it would have got before a controversial change to how the payments are calculated.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The carve-up deal originally set out to distribute GST based on a state or territory's revenue-raising power to ensure every jurisdiction could provide equal services to its population.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But that system was changed by the Turnbull government and then-treasurer Scott Morrison in 2018.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/western-australia-comes-out-on-top-in-103-billion-gst-carveup-deal/369d01e7-7fc2-44b8-a172-2a3ff1e5ab68" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The new policy – which has been backed by the current government – introduced a new model for distributing GST, which set a floor for payments, meaning each state or territory receives no less than 75 cents for every dollar of GST it raises.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/insufficient-evidence-to-charge-trio-connected-to-dezi-freeman-case-police-say/972e4cb9-0491-4416-9036-d0d5e7423ee5"><strong><span>Dezi Freeman's wife won't be charged over hunt for accused cop-killer</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But WA isn't the only state getting a bigger slice of next year's $103 billion pie.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Queensland's GST distribution will increase by $1.7 billion next financial year, the most significant dollar increase of all the states, due to falling coal prices which have reduced the state government's revenue.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Victoria's percentage share will fall slightly, with dollars redirected to Queensland and WA due to the aforementioned drop in coal and iron ore royalties.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Victoria will still receive about $1.7 billion more than NSW, even though NSW has a larger population.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GST "relativities" – the scores used to determine how much funding a jurisdiction receives – in South Australia and the ACT marginally decreased, and Tasmania and the NT's share increased slightly, owing to changes in First Nations populations and people living in regional areas.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/petrol-australia-energy-minister-chris-bowen-lashes-motorists-for-hoarding-fuel/b4449e6e-74b9-43f8-8dc8-18d893ff2674"><strong><span>Energy minister unleashes over 'un-Australian' petrol act</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The 2026-27 carve-up deal has again cast criticism over the vexed policy, which the agency responsible for the distribution today admitted disproportionately benefits WA.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a submission to the Productivity Commission, the Commonwealth Grants Commission said Western Australia has received around $23 billion more GST revenue in the last five years than it would have if the floor did not exist.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In the current economic circumstances, most states receive less GST revenue than would be needed to provide the average level of services," the submission read.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/pauline-hanson-policies-stance-on-immigration-housing-voting-record-explained/1a21d57d-cddd-4ba5-b1ce-0b564e205b79" target="_blank"><strong><span>One Nation's popularity is surging. But what does Pauline Hanson's party actually stand for?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"At the same time, Western Australia receives more GST revenue than would be needed to provide the average level of services."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Productivity Commission is reviewing how GST is divided between the states and territories.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Public policy expert Robert Breunig has previously called the deal a "disaster", while fellow respected economist Saul Eslake has been even more scathing, calling it "the worst public policy decision of the 21st century thus far" and WA's recent arguments "vacuous" and "without foundation whatsoever".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An interim Productivity Commission report is expected in November.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>