On 5 May 2017, the Federal Treasurer tasked the Productivity Commission to undertake an inquiry into Australia’s system of Horizontal Fiscal Equalisation (HFE), which underpins the distribution of GST revenue to the states and territories.

On 19 May 2017, the Productivity Commission invited submissions to its Inquiry into HFE, with a focus on two main themes: the impact of HFE on the community, economy and state governments; and whether or not there are alternatives to the current HFE system and its implementation by the Commonwealth Grants Commission. The Commission issued a guidance note outlining the key information it will seek to ask and answer as part of this inquiry.

The Northern Territory Government lodged its submission to the Productivity Commission Inquiry into HFE in
July 2017.

Northern Territory Submission to the Productivity Commission Inquiry into Horizontal Fiscal Equalisation July​  2017

The Productivity Commission is expected to release a Draft report in October 2017 and a Final report in
January 2018. Further information on the Productivity Commission inquiry into HFE can be found here: http://www.pc.gov.au/inquiries/current/horizontal-fiscal-equalisation