Part 1: Australias Federal Relations  -  2022-2023

Overview

In 2022–23, the Australian Government will provide state and territory governments (states) with $170.2 billion in total payments, including payments of $81.8 billion for specific purposes like schools and hospitals, and general revenue assistance of $88.5 billion.

Through its payments to the states, the Australian Government is:

contributing $118.7 billion from 2022–23 to 2025–26 for public health and hospital services, including $1.8 billion for continuing COVID-19 support to 31 December 2022

providing $59.5 billion from 2022–23 to 2025–26 to invest in nation-building infrastructure

investing $115.1 billion in Quality Schools funding from 2022–23 to 2025–26, with an additional $265.0 million for the new Schools Upgrade Fund and $192.0 million for the Student Wellbeing Boost

providing $1.7 billion from 2022–23 to 2025–26 to preschools

delivering 480,000 fee-free TAFE places over 4 years, beginning with 180,000 fee-free TAFE places in 2023 through its contribution of $550.1 million to the 12-Month Skills Agreement

permanently boosting the size of the GST pool that is distributed among the states each year. From 2021–22, the Australian Government will inject $600.0 million annually into the GST pool, followed by a further $250.0 million annually from 2024–25, with this amount to grow each year in line with the underlying growth of the GST

providing an estimated $15.7 billion in horizontal fiscal equalisation (HFE) transition payments from 2022–23 to 2025–26 to support the transition to the new HFE system.