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Articles on Federalism

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The states are far better placed to make good education policy for Australians than the Commonwealth. AAP

Hands off, Canberra: education is better off with the states

Could we be witnessing the dawn of a new era of education federalism? It’s rare to hear senior public servants severely and publicly criticise existing institutional and political arrangements and call…
There have been instances of successful federalism - how do we return to these? Flickr/monkeyc.net

How we can reinvigorate the Australian Federation

When our two major levels of government work in partnership, our Federation can function well. The standout period for cooperative federalism was the Hawke/Keating term of government, producing the National…
A formal, transparent and public assessment of infrastructure benefits and costs is the only way to ensure the right decision are made. Dan Peled/AAP

Realising Abbott’s infrastructure dream will need state support

One of the many challenges facing the Australian economy over the next decade or two concerns investment in transport, electricity, water, communications, health and education, and other infrastructure…
Prime Minister Tony Abbott today releases the terms of reference for his government’s federalism white paper. AAP/David Crosling

Federation white paper will look at a slimmer role for Canberra

The Abbott government’s strong preference for limiting the role of Canberra and boosting that of the states is a central thrust in the terms of reference for the white paper on reforming the federation…
An unintended consequence of competitive federalism has led states to abandon high benefit-cost ratio projects for inferior ones. AAP/Alan Porritt

Beggar bowl politics blocks Federation’s potential

Calls to lift the GST rate to placate the states financial challenges will serve to only exacerbate an already severe vertical fiscal imbalance and prolong a deeply unsatisfactory chapter in Australia’s…
The NSW Baird government is relying on asset sales to fund infrastructure, but all state governments have a revenue problem. AAP/Dan Himbrechts

New federalism promise recedes on falling wave of state asset sales

The fiscal relationship between the Commonwealth and the states in Australia’s federal system is unsustainable in the long term. That statement has been difficult to deny ever since the 1940s, when Canberra…
Realistic reforms to federal-state financial relations are possible with the right amount of political will. AAP/Alan Porritt

Could ‘hard budget constraints’ fix the federation’s fiscal feud?

The federal budget reignited debate over federal-state relations with a decision to cut $80 billion funding for the state responsibilities of schools and hospitals over the coming years. So how can federal-state…
What’s the ideal arrangement for funding education? Would responsibility lie with the federal or state governments? AAP

Is education better off in state or federal hands?

The federal budget reignited debate over federal-state relations with a decision to cut $80 billion funding for the state responsibilities of schools and hospitals over the coming years. So how can federal-state…
The chances of a single level of government taking charge of Australia’s health system are slim. AAP/Quentin Jones

Federal-state health relations: can anything be salvaged?

The federal budget reignited debate over federal-state relations with a decision to cut $80 billion funding for the state responsibilities of schools and hospitals over the coming years. So how can federal-state…
Since the first Commonwealth parliament, commemorated in a special 2001 sitting in the Victorian Legislative Assembly, government has grown in unanticipated ways. AAP/Julian Smith

A reformed federation to match the needs of modern Australia

The federal budget reignited debate over federal-state relations with a decision to cut some $80 billion in funding for the state responsibilities of schools and hospitals over the coming years. So how…
Queensland Treasurer Tim Nicholls had little good news to deliver. Dan Peled/AAP

Queensland budget shows why the federation is broken

As Queensland Treasurer Tim Nicholls released the state budget yesterday, one could be excused for not really noticing. Long the poor cousin of Australian Federalism, state budgets rarely get much press…
There is now a large disparity between the respective responsibilities of the Commonwealth and the states and their relative capacities to fund those responsibilities. AAP/Alan Porritt

Federation frozen in time fails as a model of accountable government

The federal budget reignited debate over federal-state relations with a decision to cut some $80 billion in funding for the state responsibilities of schools and hospitals over the coming years. But how…
Australia’s state premiers are avoiding a GST discussion. Daniel Munoz/AAP

GST reform a golden opportunity, soon to be missed by the states

This past Tuesday was another bad day for Australian federalism: the Abbott government’s first budget announced the axing of the COAG Reform Council and the withdrawal of a promised A$80 billion from health…
Former Victorian premier John Brumby, pictured at a COAG meeting in 2008, wants an Australian federation with a better balance between roles, responsibilities and revenue. AAP/Paul Miller

John Brumby: an Australian federation for the future

More than 100 years after Federation, the government’s White Paper on Reform of the Federation presents a historic opportunity to reconsider federal-state relations and responsibilities. How can state…
Ever thus… there is a quite a history of the federal government pulling funding from the states. AAP/Alan Porritt

Funding stoush between the states and feds not so new

The states have some justification in being annoyed about being stripped of $80 billion worth of federal funding for health and education funding. These programs were negotiated on the basis of shared…
The federal budget shows that Tony Abbott is now committed to a strong division of responsibility between the Commonwealth and the states, rather than a more centralised model. AAP/Alan Porritt

Abbott draws up new battlelines in the fight over federalism

When treasurer Joe Hockey detailed his first budget on Tuesday, the announcement that the states and territories were to be stripped of A$80 billion in federal health and education funding agreed to with…
The High Court has given the Commonwealth two serious warnings that it needs to review its extensive spending program since 2009, but these have gone largely unheard. AAP/Lukas Coch

Commonwealth spending back in the High Court’s sights

This week, the High Court heard Toowoomba man Ron Williams’ second challenge to the constitutionality of the Commonwealth’s funding of the National School Chaplaincy and Student Welfare Program. While…
The Commission of Audit has recommended a major recalibration of Australia’s federal system. Why? AAP/Alan Porritt

Will the Commission of Audit lead to another ‘new federalism’?

The Commission of Audit has not flinched from making a tranche of bold recommendations to the Abbott government, but nothing in its report trumps the call for the Commonwealth to withdraw from areas that…
Infrastructure is a key challenge for Jay Weatherill’s South Australian state government, which has been returned to power in a minority government arrangement. AAP/Ben Macmahon

Labor lives to fight another day in South Australia

The electoral uncertainty in South Australia has come to an end, at least for the foreseeable future. To some disbelief, Labor premier Jay Weatherill has managed to overcome the odds – and indeed the polls…

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