The ACT stands to lose up to $60million a year under proposed changes to how the nation's GST revenue pool is distributed, threatening to plunge the territory budget further into deficit.
The Commonwealth Grants Commission, an independent body that determines what percentage of the GST pool each state and territory receives, believes it would be fairer to allocate the revenue based, in part, on a jurisdiction's population growth rate, arguing their infrastructure needs would be greater.
The changes would significantly benefit Queensland, which NSW Treasury predicts would receive an additional $670 million in 2010-11 if the change was introduced.
However, the ACT, NSW and the Northern Territory stand to lose billions in combined GST revenue in the next few years, prompting a public campaign by the NSW Government this week to protest against the change.
For more, pick up a copy of today's Canberra Times