Fiscal policy and regulatory advice

(Budget Output 2.2)

Commonwealth Grants Commission

We provided input into the Commonwealth Grants Commission's 2010 Review, which will determine the methods used for distributing GST revenue among the states for the five-year period beginning in 2010. Tasmania's contribution to the Review seeks to ensure that the State's financial needs are recognised under these new methods.

As part of the 2010 Review, we coordinated and hosted a one-week visit by the Commission in April 2008. These discussions provided an opportunity to directly explain to Commissioners the cost and demand pressures influencing the delivery of State Government services in Tasmania and how these might differ in other states. The workplace discussions allowed practical demonstration of cases made by Tasmania in its written submissions by those who are at the forefront of service delivery.

We assisted the Commission in implementing a new process for providing, and quality-assuring, the data that it uses in its annual updates of state GST shares.

Commonwealth-State financial relations

On 26 March 2008, the Council of Australian Governments (COAG) agreed to implement a new framework for Commonwealth-State financial relations. This framework is focusing on improving the quality and responsiveness of government services by reducing Commonwealth prescriptions on state service delivery. The framework will also provide for clearer roles and responsibilities and outcome-based public accountability and is consistent with the broad direction for reform that we have been advocating for a considerable period. We have supported the reform of tied-funding arrangements and are continuing to participate in the development and implementation of the reforms through various working groups established by the Ministerial Council for Commonwealth-State Financial Relations.