The unknown loser is who pays for the additional Commonwealth funding.
Michelle Grattan speaks with Mark Evans about the week in Australian politics.
To make a concession to the coal lobby would flout the technology-neutral foundation of the NEG and have much more serious implications than throwing in some money to boost the GST pool.
The government's plan released by Treasurer Scott Morrison on Thursday, would ensure the fiscal capacity of all states and territories was "at least the equal of NSW or Victoria, whichever is higher".
The complexity of the reforms might jeopardise the necessary cooperation of overseas businesses, and place consumers at risk of paying wrongly charged GST.
Amazon has barred Australian shoppers from its US site, rather than contend with new GST rules on overseas purchases. But don't expect a stampede at your local branch of Harvey Norman as a result.
The Productivity Commission has recommended reform to the relationship between the federal and state governments. Here are three areas that demand it.
To secede or not to secede, that is the question for WA, as it considers going it alone (though not everyone is taking it seriously).
Applying the GST to banking has much sounder economic underpinnings than the current levy, would have raised much more revenue, and would have applied to all banks rather than just the big banks.
The government shouldn't cave to WA's calls for a change to the way GST is divvied out. The current system has served Australia well.
There are many potential reforms to the tax system that are revenue neutral, from broadening the tax base to replacing transaction taxes.
The government has ordered the Productivity Commission to review how the GST revenue is sliced up.
The governments move to include low-value online bought goods in the GST doesn't treat overseas and local sellers in the same way.
India stands to economically benefit from the introduction of a Goods and Services Tax. Australia could also cash in.
The path back to surplus inevitably winds through state finances. And it's a potholed road.
NSW's no-debt budget comes with a declining share of GST, an issue that must be wrangled with the federal government.
When it comes to Western Australia, key state issues will be more significant than usual in swinging the vote in the 2016 federal election.
The Business Council of Australia speaks for the big end of town - but does it still have the ear of government?
Last week I joined 8,500 Australians on the charity challenge to live below the extreme poverty line, spending just $2 a day on food for five days. It was tough and my diet was far from complete.
The recent history of elections in Australia is a varied one, with some spectacular crashes and own goals along the way.