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The Australian federal system has been the
focus of considerable attention in recent years. Both the Australian
Labor Party (ALP) and the Liberal party have increasingly challenged
and questioned the ability of the states and territories to
cope with changed societal needs, especially in such areas as
health care. The parties also have increasingly pushed for Commonwealth
Government control or oversight of many state-run services.
Their activity has suggested a need for a wide-ranging overhaul
of the federal system. Accordingly, the 42nd Parliament
may well be faced with proposals to investigate what the ALP
has called, ‘the intersection of Commonwealth and State government
responsibilities’. These might include:
- a review of areas of overlap and duplication of responsibility
between governments to eliminate inefficiencies and clarify
government responsibilities
- the maintenance of horizontal fiscal equalisation to maintain
suitable government services based on Grants Commission recommendations
- provision of adequate general-purpose funding to local governments
- specific purpose payments that are appropriate to national
objectives and the achievement of national standards
- oversight of such payments to ensure they are used for the
purpose for which they have been allocated, and
- working to ensure that lower-level governments are able
‘to maintain and steadily improve their economic and social
infrastructure’.
The Rudd Government might also work to encourage
governments to voluntarily:
- harmonise revenue bases and tax administration, and
- support arrangements to integrate the administration of
all government taxes and charges, particularly if this can
lead to economic benefits such as lower compliance costs for
business.
A tangential federalism issue involves companies
allegedly shifting jurisdictions so as to avoid their occupational
health and safety and workers’ compensation responsibilities
and obligations. The ALP has said it will stop this practice
with the help of the states.
Library documents
Scott Bennett, ‘The politics of
the federal system’, Research Brief, no. 4, Parliamentary
Library, Canberra, 2006–07.
Richard Webb, ‘Developments in
Commonwealth-state financial relations’, Research Brief,
no. 11, Parliamentary Library, Canberra, 2005–06.
Richard Webb, ‘The Commonwealth
Government’s role in infrastructure development’, Research
Paper, no. 8, Parliamentary Library, Canberra, 2003–04.
Documentation
Australian Labor Party web site: http://www.alp.org.au/.
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