Garnaut Fitzgerald Review of Commonwealth-State Funding

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CHAPTER 13: Commonwealth–State Financial Relations for the 21 st Century Table 13.2 summarises the overall funding distribution before and after the application of the guarantee for 2002–03 (the base year) for all States. Table 13.3 shows projections of the distributions resulting from our model in 2007–08 (year 5) and Table 13.4 shows 2012–13 (year 10). Further details are provided in Appendix D, including parameters and assumptions used in the calculation of these projections. TABLE 13.2: Projected distribution – base year ($ million) 2002–03 NSW VIC QLD WA SA TAS ACT NT AUST General purpose grants 10 549 7 849 5 960 3 167 2 481 841 598 415 31 861 Health and Aged Care Program 3 471 2 576 1 884 972 822 251 152 83 10 212 Education and Training Program 1 329 956 744 374 301 102 62 49 3 917 Sub-total 15 349 11 381 8 588 4 513 3 605 1 195 812 547 45 989 Guarantee benchmark 14 583 10 201 8 457 4 374 4 185 1 620 850 1 717 45 989 Adjustment - 766 -1 180 - 130 - 139 581 426 38 1 170 0 Total 14 583 10 201 8 458 4 374 4 185 1 620 850 1 717 45 989 TABLE 13.3: Projected distribution – year 5 ($ million) 2007–08 NSW VIC QLD WA SA TAS ACT NT AUST General purpose grants 13 143 9 776 7 584 4 005 3 012 976 710 505 39 709 Health and Aged Care Program 4 300 3 200 2 391 1 234 999 296 184 103 12 707 Education and Training Program 1 657 1 181 952 468 364 116 74 61 4 874 Sub-total 19 100 14 157 10 928 5 706 4 375 1 387 969 669 57 290 Guarantee benchmark 17 262 12 074 10 235 5 269 4 836 1 789 967 2 025 54 456 Adjustment - 807 - 915 - 304 - 192 461 403 - 1 1 356 0 Total 18 293 13 242 10 623 5 514 4 836 1 789 968 2 025 57 290 TABLE 13.4: Projected distribution – year 10 ($ million) 2012–13 NSW VIC QLD WA SA TAS ACT NT AUST General purpose grants 17 052 12 674 10 036 5 266 3 804 1 170 871 635 51 509 Health and Aged Care Program 5 299 3 949 3 021 1 555 1 209 346 221 126 15 725 Education and Training Program 2 063 1 452 1 197 591 436 129 88 76 6 032 Sub-total 24 413 18 075 14 255 7 412 5 448 1 645 1 181 838 73 266 Guarantee benchmark 20 325 14 212 12 306 6 306 5 560 1 960 1 090 2 376 64 135 Adjustment - 724 - 684 - 345 - 196 111 315 - 16 1 538 0 Total 23 689 17 391 13 910 7 216 5 560 1 960 1 165 2 376 73 266 FINAL REPORT [198]
CHAPTER 13: Commonwealth–State Financial Relations for the 21 st Century 13.3 The new model and intergovernmental issues The proposed model would be based on a new intergovernmental agreement, building on the 1999 Intergovernmental Agreement. The new intergovernmental agreement would set out the Commonwealth’s commitment to maintain grants to the two largest national programs and total payments to each State in real per capita terms. It would lay down the basic principles for operation of the three cooperative national programs. Ministerial Councils would develop specific agreements for the Health and Aged Care, Education and Training, and Indigenous Community Development Programs. They would specify multi-year objectives for the national programs and be reviewed annually. Multi-year rolling budgets and performance indicators would be identified, by which performance against objectives would be assessed. The agreement for each national program would also specify minimum service outcomes and an estimated minimum level of real per capita expenditure necessary to deliver that level of service. Each State would be required to achieve the agreed outcomes, sometimes partially specified in terms of minimum levels of services. However the States would be free to achieve these outcomes and levels of service with the most cost-effective means available to them and without obligation to commit specified amounts of inputs. States would also be free to provide services above the agreed minimum standard. The new approach would give effect to the objectives set out in the recent SPP Principles agreed by all the States. In regard to education and training, existing bodies have roles in setting broad objectives to meet the needs of the community in areas such as access, choice, equity and excellence in schooling, and vocational preparation. The Australian National Training Authority is the Commonwealth statutory authority that currently provides a national focus for vocational education and training. The Australian National Training Authority administers national programs and the Commonwealth component of funding for the national vocational education and training system. It also plays an advisory role to the Ministerial Council of Commonwealth, State and Territory Ministers, which is responsible for vocational education and training. Under the new arrangements, the Ministerial Council for Education and Training would consider whether these established bodies would continue in the same or modified roles. FINAL REPORT [199]
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Review of Commonwealth-State Fundin
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TABLE OF CONTENTS CHAPTER 9: Equity
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THE REVIEW COMMITTEE FINAL REPORT [
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EXECUTIVE SUMMARY Overall assessmen
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EXECUTIVE SUMMARY Each State would
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CHAPTER 1: Overview and Summary of
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CHAPTER 2: How the System Grew: A H
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CHAPTER 3: The Current System TABLE
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CHAPTER 3: The Current System 3.3 G
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CHAPTER 3: The Current System Natio
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CHAPTER 3: The Current System FINAL
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CHAPTER 4: Allocation of General Pu
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Chapter 5: Specific Purpose Payment
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CHAPTER 6: Comparative Fiscal Posit
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CHAPTER 7: Other Federations 7.2 Ve
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CHAPTER 7: Other Federations In add
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CHAPTER 7: Other Federations Compar
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CHAPTER 7: Other Federations FINAL
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CHAPTER 9: Equity Chapter 1 notes t
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CHAPTER 9: Equity Both SPPs and gen
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CHAPTER 9: Equity Table 9.3 shows t
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CHAPTER 9: Equity 9.3 Horizontal di
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CHAPTER 9: Equity Many ways to rais
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CHAPTER 10: Efficiency and Economic
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Page 240 and 241: GLOSSARY Efficiency: allocative eff
Page 242 and 243: GLOSSARY merit goods (health, educa
Page 244 and 245: FINAL REPORT [234] GLOSSARY
Page 246 and 247: BIBLIOGRAPHY Buchanan, JM 2001, Fis
Page 248 and 249: BIBLIOGRAPHY Government of Victoria
Page 250 and 251: BIBLIOGRAPHY Watts, RL 1999, Compar
Page 252 and 253: INDEX E economic activity / growth
Page 254 and 255: INDEX O other Federations Canada ·
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Garnaut Fitzgerald Review of Commonwealth-State Funding

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