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Discussion paper

NSW Review of federal financial relations: discussion paper

Working together for a better future
Goods and services tax State and Territory budgets Taxation Federal government State governments Australia

As the nation’s largest economy, New South Wales is seeking to drive a national vision for the federation that encourages innovation and competition. A federation that supports a stronger economy, better services, and ultimately, better outcomes for all Australians.

To open this national discussion, the NSW Government has tasked the Review of Federal Financial Relations (‘the Review’) to:

  • consider the interactions between different levels of government in regard to state funding arrangements
  • examine the New South Wales revenue system with a focus on Commonwealth funding arrangements including the design, complexity and number of funding agreements with the Commonwealth
  • develop options for reform that improve the capacity of New South Wales to meet its funding needs sustainably over the long-term, informed by the objectives of encouraging a more dynamic form of federalism, rewarding state-led economic reform, and securing greater flexibility and autonomy for New South Wales, and
  • provide Government with a realistic assessment of feasibility and implementation issues, as well as a road map to overcome practical obstacles to successful reform.
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