Costing Constitutional Change: Estimating the Cost of Five Variations on Australia's Federal System

Australia's system of government is by far the most centralised of the four 'classic' federations, hosting extremely centralised states, exceptionally weak local governments, and little of the substantive decentralisation and subsidiarity often presumed to derive from a federal structure. Five variations on the present structure are examined to estimate the costs of improved decentralisation, including New States models as traditionally advocated, Regional States models based on the ACT combined state–local prototype, and a National–Local model comprising a strengthened national government and local governments in essentially their present form. 1 Results indicate that the Regional States or National–Local models could deliver greater decentralisation while saving over $20 billion per annum compared to the present system. Generally, the analysis suggests that coherent modelling of alternative government structures may be more feasible than previously thought.