From GST to gambling to gun buybacks, Australia’s federation isn’t working

GST distribution.

National Disability Insurance Scheme reforms.

Data centre regulation.

The national gun buyback.

These are just some of the big policy challenges the federal government is trying to navigate with the states and territories, many of which were raised at this week’s meeting of National Cabinet.

Corralling the premiers and chief ministers around a specific legislative agenda has long been a challenge.

But Australia’s federation – one of the oldest and most stable in the world – has that tension built in.

Australia’s federation is underpinned by a concept called “competitive federalism”.

This shapes politics and policy at both the state and federal levels, for the better and the worse.

So what is competitive federalism and how is it supposed to work? Racing to the top Competitive federalism is the idea that state and local officials determine their own policies to compete with other jurisdictions.

It’s said to reduce waste, improve accountability and citizen representation, and lead to more efficient economic and market outcomes.

According to this logic, citizens in Queensland have different policy preferences and priorities than those in Victoria, for example.

This is why policies and laws differ from state to state.

Elected regional officials often have more information and knowledge about what their own states need or want.