Loser Victoria shouldn’t be a GST winner

The office sweepstakes for the Melbourne Cup is a tradition in Victoria. There are prizes for those holding the ticket for the horses that come in the top three and a consolation prize for the person whose horse is last over the finishing line. If you’re watching the race and know your horse can’t win, you’ll barrack for it to come last.

The way the Commonwealth Grants Commission allocates GST revenue to the states is not unlike a Melbourne Cup sweep. Except there’s no prize for being the best-run state. The money goes to the losers, not the winners. So it’s no surprise that when the GST distributions were announced this week, Victoria was the big winner.