Federalism and Australian Local Government: Reflections upon the National Inquiry into Local Government Finance

In: Environment and planning. C, Government and policy, Band 5, Heft 2, S. 123-135

Abstract

In 1984 the Hawke Government appointed a National Inquiry to review the federal revenue-sharing grants for local government introduced eight years previously, and to propose desirable aims and a basis for future federal support. Australian local government is on a small scale and closely under the control of state governments; federal support raises complex issues of intergovernmental relations. In this paper, the wide-ranging Report of Inquiry, and its political outcome, are related to basic issues about federal-state relations and the rationale and extent of federal interventions. In particular, the Australian experience is interesting for its attempts at combining vertical redistribution of revenue with ambitious and detailed equalisation policies, financed at federal level but administered by independent state agencies.