Treasurer Josh Frydenberg has caved into states and territories demanding a legislated guarantee they be no worse off under changes to the way the GST is carved up.
Under a compromise agreed to by the coalition partyroom on Tuesday, draft laws will be introduced on Thursday containing safeguards to ensure every jurisdiction will be in a better financial position over a set period.
The guarantee will cover the transition period from 2021/22 to 2026/27.
