Statement from the Shadow Treasurer

Statement – GST carve up review confirms Victoria falling behind Australian States 

James Newbury, Shadow Treasurer

The Commonwealth Grants Commission’s 2025 Methodology Review into Goods and Services Tax (GST) distribution has confirmed that Victoria is no longer an economic leader, but a national tax taker, as the Allan Labor Government’s reckless financial mismanagement continues to weaken the state.

Once a powerhouse of the national economy, Victoria is now reliant on a record-high share of GST funding to prop up Labor’s unsustainable budget strategy.

The review confirms that Victoria now requires an additional $3.7 billion in GST revenue, increasing per capita receipts from $3137 to $3647—a staggering $510 increase per person. This shift exposes the cracks in Labor’s economic model, as Victoria becomes increasingly dependent on the rest of the country to stay afloat.

The review also confirms that Victoria leads the nation in tax collection, with Victorians paying more in property taxes than any other state.

Land Tax accounts for 13.4 per cent of Victoria’s revenue, compared to 11.4 per cent in New South Wales.

Stamp Duty accounts for 22.5 per cent of revenue, compared to 18.5 per cent in New South Wales.

Victoria’s total tax take for the year is $39.2 billion, the highest in the country.

Shadow Treasurer James Newbury said the review exposes Labor’s unsustainable economic plan, which relies on massive tax hikes and rapid population growth to cover budget black holes

“The review is a red-letter day, as Victoria has officially shifted from an economic leader to a national tax taker,” Mr Newbury said.

“The review also recognises Victoria’s soaring population growth, with Jacinta Allan confirming her plan to grow Melbourne from five million to nine million people—without any real plan for the infrastructure or services needed to support it.”

“Jacinta Allan and her Labor Government’s budget strategy is nothing more than a Ponzi scheme—relying on more taxes and more people to paper over their economic failures.”

Instead of creating a strong and self-sustaining economy, Labor continues to rely on high taxes, skyrocketing debt, and handouts from Canberra, pushing more Victorians to the brink while failing to invest in the infrastructure and services our state desperately needs.

The Liberals and Nationals will continue to fight for lower taxes and responsible economic management, so Victoria can once again be leader in the national economy.”