As the accountable authority of the Commonwealth Grants Commission (CGC), I present the CGC’s 2018–19 annual performance statements, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity for the reporting period, and comply with subsection 39(2) of the PGPA Act.

(signed) Michael Willcock
Secretary
17 September 2019

Performance results
The CGC measures its performance using the performance criteria outlined in the CGC’s Corporate Plan 2018–19 and Portfolio Budget Statements 2018–19.

Commissioners visited each state and met with state officials from June to September 2018, as part of the ongoing consultation for the 2020 review of the methodology to be used to calculate the relativities for distributing GST revenue among the states from 2020–21 (2020 Review). In addition, commission staff released a discussion paper relating to the updated per capita relativities for use in distributing GST revenue among the states in 2019–20 (2019 Update). Submissions were received from the states and other interested parties in relation to both the 2019 Update and the 2020 Review.

External auditors attested to the technical quality and accuracy of the work underlying the GST relativities.

In line with the CGC’s outcome and the terms of reference for the 2019 Update and 2020 Review, the Commonwealth Treasurer received the 2019 Update report on 19 February 2019 and the draft report for the 2020 Review on 25 June 2019.

The GST revenue sharing relativities for 2019–20 complied with the instructions in the terms of reference received from the Treasurer on 11 February 2019. The draft report for the 2020 Review was prepared, and provided to the Treasurer on 25 June 2019, in accordance with the terms of reference for the review received on 28 November 2016.

The Federal Financial Relations (GST Revenue Sharing Relativities for 2019–20) Determination 2019, made by the Treasurer on 14 March 2019, used the commission’s recommended relativities.

While some states would have preferred a different treatment of a number of issues, most states expressed a high degree of acceptance of the well-established processes by which the CGC discharges its responsibilities.

Analysis of performance against the CGC’s purpose
The activities of the CGC are contingent upon the receipt of terms of reference from the Commonwealth Treasurer. In 2018–19, the CGC acted upon terms of reference for both the 2019 Update and the 2020 Review.

The main activity during the year was the presentation to the Treasurer of the Report on GST Revenue Sharing Relativities: 2019 Update. The Commonwealth and states received the report on 19 February 2019, as required by the terms of reference. The report was released publicly on 28 February 2019.

During 2018–19, the CGC continued work on the 2020 Review, which is scheduled for completion by 28 February 2020. The 2020 Review requires a comprehensive review of all data and methods underpinning the calculation of the GST revenue sharing relativities. In June 2019, the Commonwealth Treasurer received the draft report for the 2020 Review, in line with the terms of reference for the review.