Equalisation grants can affect a state's fiscal behaviour because its tax policies can affect the size of its grant. For a large state, an increase in its tax rate will increase the standard tax rate used to calculate the grant for that base and thereby reduce (increase) the state's grant if it...

This article examines the redistributive impact of Commonwealth outlays and taxes (including outlays directed through and to the States)and two possible alternative systems of distributing Commonwealth funding amongst the States

Australia's current intergovernmental grant allocation framework fails to take a balanced approach when assessed against the criteria of efficiency, equity, transparency and accountability. Particularly compromised is the criteria of efficiency, resulting in states having little incentive to...

The March 2014 Report of the National Commission of Audit and the Commonwealth's tax reform and federalism discussion papers published in the first half of 2015 provided some early insights into the Coalition Government's agenda for reforming the national tax system and fiscal federalism. One...