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This article by Nigel Ray, Executive Director of Intergovernmental Relations in 2009, introduces a new framework for federal financial relations aimed at improving the quality and effectiveness of government services. The framework emphasizes rationalized and centralized payments, performance and financial reporting, and incentives for reform across various sectors such as healthcare, education, infrastructure, and public services. It discusses key elements of the reform, including targeted programs, grants, and partnerships, and highlights the need for ongoing collaboration to address fiscal imbalances. The article advocates for refining financial relationships to enhance service delivery and optimize public resources.
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Reforming financial relations - improving the quality and effectiveness of government services Nigel Ray Executive Director Intergovernmental Relations 2009 22 July 2009
Four key elements of the new framework Rationalised and centralised payments Performance reporting Financial reporting Incentives for reform
Four key elements of the new framework Rationalised and centralised payments Rationalised and centralised payments Performance reporting Financial reporting Incentives for reform
Rationalising payments National healthcare SPP Financial assistance grants National schools SPP Targeted programs Snowy Non-govt capital Elective surgery Youth health Non-govt schools - current Local roads Govt schools - current Royalties COAG National Partnership payments Aged care Australia Health Care Agreement Other local Ind. house Govt capital SAAP Computers In schools National Partnership project payments National disabilityservices SPP National public health Organ donation Disability Services ACT Nurses Health Paymentsto local government National affordable housing SPP CSHA Indigenous education Targeted programs AusLink National skills and workforce development SPP Skilling Australia’s Workforce General revenue assistance Young disabled GST payments
Four key elements of the new framework Rationalised and centralised payments Rationalised and centralised payments Performance reporting Performance reporting Financial reporting Financial reporting Incentives for reform Incentives for reform
Chart 1Vertical fiscal imbalance since federation(Grants as a percentage of total state revenue) • Source: Mathews and Jay 1997, Australian Treasury estimates