Submission to the Productivity Commission Inquiry on Horizontal Fiscal Equalisation in Australia

The Productivity Commission inquiry into the economic impact of Australia’s GST distribution arrangements is timely.  There is a lack of clarity about the objectives of current arrangements, there is manifest unfairness in the outcomes the system is delivering and worse still, the current system is providing state and territory governments with perverse incentives to turn away productive investment rather than develop their human and natural resources. 

Reforming these arrangements is a critical national task which, if successful, will deliver a more productive national economy, higher economic growth, more and better paid employment opportunities and better living standards.

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