Business Regulation

Federal–State Relations

Endemic problems in federal–state relations are costing Australia billions in wasted government spending and lost economic opportunity.

BCA research reveals federal–state inefficiencies are already a major economic issue costing taxpayers at least $9 billion a year. These inefficiencies require an additional tax burden of $1100 a year to be imposed on every Australian household.

In a federal system, major economic and social challenges cannot be solved by one tier of government alone. Australia urgently needs more collaborative responses and structures embedded in the way our federal and state governments work together to enable them to strategically address major challenges in areas such as education, health and infrastructure.

In 2006 the BCA released Reshaping Australia’s Federation: A New Contract for Federal–State Relations, which proposes a 12-point plan to overcome blockages in the current system and tackle overdue reforms to keep Australia’s economy on track.

In 2007 the BCA launched A Charter for New Federalism, which outlines the steps needed for Australian governments to work more effectively and produce better reform outcomes.

The BCA is actively lobbying state and federal governments on the need to adopt the recommendations contained in these reports.

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