The National and Regional Consequences of Australia's Goods and Services Tax.

The major political parties support the tenet of the original GST agreement that GST change requires unanimous state approval. However, GST change could differentially affect state economies, and thus influence support from individual states. We investigate the potential for GST change to differentially affect state economies. We do this by developing a multi‐regional model of the Australian economy that contains details of the legislated features of the GST. In this model, when we change any element of the GST, the economic effects are informed by regional differences in economic structure and their interactions with the details of our GST theory. [ABSTRACT FROM AUTHOR]