The Commonwealth Treasurer and the Productivity Commission (PC) seem intent on providing a greater share of goods and services tax (GST) grants to Western Australia (WA).
But do you have to change the definition of horizontal fiscal equalization (HFE) to deliver a fiscal advantage to WA, being the outlier fiscally strongest State, at the expense of […]
A number of submissions to the Productivity Commission’s Horizontal Fiscal Equalisation (HFE) Inquiry have argued that GST grants should be distributed between the States equal per capita. But conventional policy goals such as promoting efficiency, equity and productivity at the national level provide no support for this prescription.
NSW and WA have argued to the Inquiry […]
There are some interesting submissions at the PC’s Horizontal Fiscal Equalisation (HFE) Inquiry website.
Victoria, Queensland, SA, Tasmania, ACT and NT are all in favour of HFE albeit with some suggestions for improvement. None of these States buy the line that HFE is undermining reform, growth or productivity. NSW and WA are opposed to HFE and […]