This submission argues that major barriers to reform in areas such as special purpose payments, state government financial management and infrastructure, are associated with poor cooperation between governments.

Australia’s federal and state governments have a responsibility to achieve greater cooperation in intergovernmental fiscal and infrastructure arrangements, to ensure that deadweight costs are reduced and create greater transparency and accountability for investment, spending and revenue raising.

The submission draws on related BCA publications including its submission to the 2008–09 Budget, Budgeting for Prosperity; A Charter for New Federalism, Infrastructure: Roadmap for Reform, Tax Nation: Business Taxes and the Federal–State Divide and Reshaping Australia’s Federation: A New Contract for Federal–State Relations.

Submission to the Senate Select Committee on State Government Financial Management Inquiry into State and Territory Fiscal Relations and State and Territory Government Financial Management