NSW Premier Chris Minns and Treasurer Daniel Mookhey are questioning Prime Minister Anthony Albanese over a $310 million GST shortfall for NSW in 2024-25.

They argue that NSW is being deprived of $1.65 billion in GST revenue based on the previous year's allocation formula.

In contrast, Victoria and Western Australia are set to receive an increase of $3.7 billion and $838 million respectively in GST funding.

The 2018 changes to the GST distribution system, introduced by the Morrison government, are criticized for their 'no worse off' clause by independent experts, including economist Chris Richardson.

Richardson has calculated that these changes effectively cost each taxpayer an additional $400 annually.

NSW Treasurer Mookhey has labeled the GST allocation system as 'absurd' and expressed concern over the impact on NSW's ability to achieve a budget surplus next year.