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Tag: federalism

Squabbling and secession: more signs of a broken federation

Squabbling and secession: more signs of a broken federation

Since examining South Australia’s ‘bank tax’, there have been three more occasions where states have gone on the attack against the state of the federation, each more attention-grabbing than the next. The first salvo came from the WA Liberals, with their leader Mike Nahan stating that the party was considering legal action against the federal government over the way GST has been distributed. This unusual suggestion caused a slight ripple, but seems in hindsight more like a portent of something bigger to come. Secondly came the Victorian government, who flat-out demanded an extra $420 million to account for population growth on the back of arguing that Western Australia had actually been a net beneficiary of federal grants since federation. Finally, the WA Liberals returned with a bigger, though watered-down, warning, passing a motion to examine the feasibility of seceding from the commonwealth.

Other than attempting to give us the truly awful non-word ‘WAxit’, what is the logic behind these actions, and what is the Australian government planning to do about it?

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Creative taxation: the sign of a failing federation

Creative taxation: the sign of a failing federation

This week found Jay Weatherill, the Premier of South Australia, once again attacking Australian banks, this time on the back of the Commonwealth Bank recording a nearly $10 billion profit, while being accused in the same week of money laundering. Weatherill’s aggression towards the banking sector comes during his government’s campaign to get a new bank levy through the state parliament, just as the federal government did earlier in the year. Unlike the federal levy, which had near unanimous political support, this state levy is being opposed by the state opposition and Nick Xenophon’s party, while the banks are in a far greater state of discontent than they were when the federal levy was introduced.

So, what’s actually going on?

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