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Commonwealth Grants Commission

CGC

1933 – present

Independent statutory body that advises the Australian Government on how Commonwealth funding should be distributed among the states and territories, and since 2000 on the relativities used to share GST revenue.

How it came into existence

Established in 1933 under the Commonwealth Grants Commission Act 1933 to inquire into claims by the less populous states, initially South Australia, Western Australia and Tasmania, for special grants under section 96 of the Constitution; it was created in the wake of the Western Australian secession movement.

Legislation: Commonwealth Grants Commission Act 1973

Changes during its life

  1. 1973The Commonwealth Grants Commission Act 1973 replaced the 1933 Act and broadened the Commission's functions.
  2. 1 July 2000Began providing the relativities used to distribute GST revenue among the states and territories.

Main functions

  • Advice on horizontal fiscal equalisation
  • Recommending GST revenue sharing relativities
  • Assessment of state and territory fiscal capacities
  • Inquiries into special grants and other financial assistance

Where it sits

In the portfolio of Department of the Treasury.

Type of body
Non-corporate Commonwealth entity
Portfolio
Treasury
Accountable authority
Secretary of the Commission – Commonwealth Grants Commission Act 1973 section 7 (3)(b)
ABN
64 703 642 210

Lineage

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Sources