May 2006
Strengthening our Federal System to Improve Outcomes
The Victorian Government is advocating reform to the way Commonwealth, State and Territory Governments work together to develop our human capital through health and education reform. Much of the Commonwealth’s funding contribution to health and education, areas of State constitutional responsibility, is through arrangements known as Specific Purpose Payments (SPPs).
The Allen Consulting Group, at the request of the Victorian Government, has assessed the effectiveness of current SPP arrangements in improving outcomes for our citizens and our economy. The report confirms what a series of reports have consistently found over the past decade – that SPPs focus too much on administration and red tape, and not enough on the outcomes that really matter.
The report finds that SPPs too often reflect a rigid, one size fits all approach from distant Canberra bureaucrats. In a country as diverse and large as Australia, there is a need for more flexibility and diversity in policy development and service delivery if we are to respond to the varied needs of local communities and adapt to change.
Given that Council Of Australian Governments (COAG) considers the National Reform Agenda in July, this report makes a timely contribution to the ongoing debate about how we can make Commonwealth and State Governments work together more effectively.
View the report by The Allen Consulting Group:
An HTML version of this document will be available shortly.
For background information on the National Reform Agenda view the following:
For further information on modelling supporting the national reform agenda, please visit the
Department of Treasury and Finance website.
If you would like copies of these papers in alternative formats, please contact 9651 0736.
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