The long-term transfer of power from the states to the Commonwealth has been abruptly undone over the last twelve months, and the vaccine rollout debacle will put things in reverse.
One of the long-running subtexts of neoliberal policymaking in Australia since the 1980s has been that Australia’s internal borders are a relic of colonialism that frustrate economic efficiency.
If we can’t abolish the states then we can make sure that regulatory differences between them are harmonised; that national — or at least east coast — markets in essential services like electricity and water operate effectively; that competition-policy prevents state governments that cling to government-owned bodies from unfairly competing with the private sector.
High Court decisions in the cases of Hammond v New South Wales and Ha v New South Wales on state taxes, and the Howard’s government GST, further subordinated the states to the Commonwealth in taxation matters.
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