Commonwealth Grants Commission
Part of the Treasury portfolio and a Federal authority, also called CGC
An independent statutory authority that operates under the Commonwealth Grants Commission Act 1973. The Commission recommends to the Australian Government how general revenue assistance should be allocated between the States and Territories. The Commission's recommendations are based on the principle of horizontal fiscal equalisation, which is defined as: A distribution of Goods and Services Tax revenue to State and Territory Governments such that, after allowing for material factors affecting revenues and expenditures, each would have the fiscal capacity to provide services and their associated infrastructure at the same standard, if each made the same effort to raise revenue from its own sources, operated at the same level of efficiency and maintained the average per capita net financial worth.
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