TAG: horizontal fiscal equalisation

Changing the definition of Horizontal Fiscal Equalisation – by Robert Schwarz

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 […]

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Horizontal fiscal equalisation and disincentive effects – by Jim Hancock

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 […]

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Unequal fiscal burdens and interstate migration – by Robert Schwarz

Is it fair to have to move interstate because of the taxpayer burden of public health costs of the elderly in one’s state of residence?
Under the system of horizontal fiscal equalization (HFE), state governments are given equal capacity to provide public hospital services even if there are different numbers of elderly in one state rather […]

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States’ submissions to Productivity Commission Horizontal Fiscal Equalisation 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 […]

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