RAJ REPORT

if horizontal fiscal equalisation.is working why are services in Cairns so far behind Brisbane especially Public Transport——- “consistent with the principle that jurisdictions should have equal capacity to provide infrastructure and services to their citizens”.

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DURING the past 90 years or so, the federal government in Canberra has achieved an overwhelming dominance in our federation. It now exercises this dominance through a patronage system known as horizontal fiscal equalisation.

HFE purports to equalise payments to state and territory governments from the GST and other federal revenues. The final report, last October, of the GST Distribution Review says HFE is “consistent with the principle that jurisdictions should have equal capacity to provide infrastructure and services to their citizens”.

 

 

 

Distribute the GST on per capita basis | The Australian.

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