What is it about?

This paper explains the political and fiscal consequences of the worst policy decision made by the Australian government in the 21st century.

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Why is it important?

The policy decision discussed in this paper altered Australia's horizontal fiscal equalisation system from one of the most egalitarian in the world to one that will now generating increasing interstate conflict and costs to the federal government.

Perspectives

International academics who cite Australia's HFE as an example of "best practice" need to update their knowledge by reading this article as to how the system now works in the post-2018 context.

Tracy Fenwick
Australian National University

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This page is a summary of: From Full to Partial Equalisation: The Case of Horizontal Fiscal Equalisation in Australia, February 2025, De Gruyter,
DOI: 10.1163/9789004524514_006.
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