State politics should not overtake Federation reform

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ScreenHunter_4654 Oct. 27 16.32

By Leith van Onselen

It hasn’t taken long for Tony Abbott’s pledge to fix the federation to hit its first stumbling block, with a number of the states hitting back at the proposal to adjust the GST.

Leading the opposition appears to be Victoria’s premier, Denis Napthine, who was first to state that Victoria had no interest in backing a GST rate rise, and instead called for a ‘fairer’ distribution of funds to Victoria, which only receives 88 cents in every dollar of GST revenue raised in the state.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.