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| HTML | Election 2007: federal-state relations |
10 October 2007The roles and responsibilities of different levels of government in Australia are becoming increasingly unclear. This lack of clarity has allowed ad hoc arrangements to emerge, and encourages sub-optimal policy in vital areas including human services and infrastructure development. Ambiguity makes lines of accountability unclear, has inhibited incentives to produce good policy, has confounded efficient government and undermined the appropriate determination of revenue allocation. How should Australian federalism be reformed? State and federal roles need to be structured so that they are clear, distinct, and work well and the right incentives must be created to support sound policy development.