Commonwealth Grants Commission

Commonwealth Grants Commission
Statutory authority overview
Formed1933 (1933)
JurisdictionCommonwealth of Australia
Minister responsible
Statutory authority executive
  • Michael Callaghan AM PSM, Chairperson (until 24 June 2025)[1]
Key document
Websitewww.cgc.gov.au

The Commonwealth Grants Commission is an Australian independent statutory body that advises the Australian Government on financial assistance to the states and territories of Australia under section 96 of the Australian Constitution. The commission was established in July 1933 by the Lyons government during the Great Depression to provide impartial advice on the distribution of federal government grants to the states.[2] The commission operates under the Commonwealth Grants Commission Act 1973, and is responsible for measuring the relative fiscal capacity of each state and territory.

The Commission recommends how the revenues raised from the goods and services tax (GST) should be distributed to each state and territory to achieve horizontal fiscal equalisation, a central feature of the Australian federation.

  1. ^ Our Commissioners
  2. ^ Henderson, Anne (2011). Joseph Lyons: The People's Prime Minister. University of New South Wales Press Limited. p. 329. ISBN 978-1-74224-099-2.