Australia’s states drown in debt

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I’ve often wondered why state premiers don’t push back against the federal government’s mass immigration policy.

Historical NOM

The federal government receives approximately 80% of the nation’s tax receipts, while states and local governments receive approximately 20%.

This ‘vertical fiscal imbalance’ means that the federal government reaps the lion’s share of the benefits of mass immigration through increases in personal and corporate taxes.

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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.