Welcome to Dr Lincoln's blog

Welcome for visiting my blog. Hope you enjoy the visit and always welcome back again. Have a nice day!


Reforming Australian fiscal equalisation

This is still work in progress.

Key points:

  1. establish an equalisation fund: 50% from the GST and 50% from Commonwealth
  2. the rest of GST distributed EPC among the States
  3. have representatives from the States seconded to the Commission
  4. HFE should take account its impact on national resource allocation efficiency, productivity and economic growth
  5. HFE should encourage innovations in governance and services provision, e.g. governemnts in smaller states may consider outsource some of its functions or services to larger states, as opposed to do them by their own


  1. more transparent
  2. incentive for the Commonwealth interested in the process and outcome
  3. more incentives for low costs or efficient or revenue rich States, but still achieve equalisation
  4. due to increased transparence, expect CGC to develop better, more robust assessment methodologies
  5. increased understanding by the States conducive to improved incentive for better data
  6. inclusive of more States and Commonwealth inputs into the process

No comments:

Post a Comment