P&L12 - Political and Legal Power: Federalism in Australia

The Intergovernmental Agreement represents the most significant reforms of Australia’s federal financial relations in decades. It recognises that the States have primary responsibility for many areas of service delivery but that coordinated action is necessary to address Australia’s economic and social challenges.

Horizontal fiscal equalisation (HFE) is the transfer of fiscal resources between jurisdictions with the aim of offsetting differences in revenue raising capacity and the cost of delivering services. Its principle aim is to allow sub-national governments to provide similar standards of public services at a similar tax burden.

News, Research and Analysis
Articles on Vertical fiscal imbalance

This chapter examines this issue in the context of the Australian federation.

Legislative powers of the Parliament

Exclusive power over customs, excise, and bounties

Revenue from customs and excise duties

Trade within the Commonwealth to be free

Financial assistance to States