CGC chair reappointed

Michael Callaghan has been reappointed part-time chair of the Commonwealth Grants Commission.

“This proposed reappointment would ensure the CGC continues to provide high-quality advice to the government on the distribution of the GST revenues,” reads a statement congratulating Callaghan on his reappointment.

Prior to the role of CGC chair – a position he has held since 2020 – Callaghan spent almost 40 years with the Australian Treasury, including as chief of staff to former treasurer Peter Costello.

Callaghan also served as the prime minister’s special envoy – international economy and was deputy secretary responsible for the Macroeconomic Group from 2008 to 2012. He also spent four years on the International Monetary Fund executive board in Washington DC.

Established in 1933, the CGC is an independent body that provides advice to the federal government on how revenue on the goods and services tax should be distributed to the states and territories, so that financial support is equalised between jurisdictions.

The CGC’s recommendations are considered at annual meetings of the treasurers of the Commonwealth, states, and territories. 

However, there have been disputes in the past as to whether the CGC has been successful in equalising financial support between states and territories. Concerns have also been raised over allegations of pork-barrelling by successive Australian governments. 

Changes were made to the CGC framework last year. They include new obligations for ministers, accountable authorities, officials and third parties involved in grants administration.