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Reform federal relations and strengthen states revenue power

Comments on Dennis Shanahan “PM on the run from policy failures”, 23/04/2010, http://www.theaustralian.com.au/news/opinion/pm-on-the-run-from-policy-failures/story-e6frg6zo-1225857147540

This is exactly why Australia should have state governments as opposed to abolish them. A federal government along can cause much more severe damages to the nation than a system where government powers are limited and there are natural competition between States in terms of policies.

This, however, does not mean that there should be duplication between the federal and state governments. There should be clear clarity between areas of responsibilities between the two levels of government.

The federal should be focused on national defence and security, foreign affairs and trade, immigration and border protection, national economic policies such as fiscal and monetary policies and very limited national infrastructure, national social security system, and play only a coordinating role in other areas of services with only one department as opposed to so many existed currently.

The states should be responsible for education, health, police and justice, housing and social welfares, roads, and etc.

Taxations revenue should be allocated in a way that reflects services responsibilities, removing the ridiculous situation like health and public hospitals where states are projected to not have the financial capacities to meet the future needs.

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