The Commonwealth Grants Commission has continued a trend of calling on Western Australia and Queensland to pull their weight in the federation.
The main beneficiary of this trend has been the Sydney-Melbourne-Canberra axis.
Expect some screams from Premiers Richard Court and Peter Beattie. The screams will be inconsistent with their boasts that their states are the new economic powerhouses of the Commonwealth. They are the new powerhouses and so should pull their weight under the general federal principle that the common wealth of the nation is distributed so each resident of the nation gets, as far as possible, equal access to government services.
The ACT used to help subsidise (although only slightly) the poorer states (South Australia, Tasmania and the Northern Territory) now it will be slightly subsidised by the larger states.
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