Overview

• Treasurer Jim Chalmers formally tasked the Productivity Commission to examine whether the arrangement is fair, delivers value for money and is fiscally sustainable for both levels of government.
• The inquiry timetable sets submissions closing on February 27, an interim report due August 28, and a final report to government by the end of 2026.
• Under the 2018 reform, no state’s GST share falls below 75 cents per dollar and the Commonwealth tops up the pool, a policy initially forecast to cost $2.3 billion over four years.
• The blowout to about $60 billion by 2029 is largely tied to stronger‑than‑assumed iron ore prices that have lifted WA’s revenue capacity.
• WA leaders and business groups have begun campaigning to keep the deal, as eastern states intensify calls for change and the Commission weighs potential alternatives and reform incentives.