The Australian argues in its editorial that the states need greater reliance on user-pays, in health, education, transport and much else.
Faced with their own unsustainable debt-to-revenue ratios, states need to be realistic about the health, education, transport and other services they can afford. They need to seek out and enact major efficiencies and greater reliance on user-pays, in health, education, transport, new freeway projects and much else.
They need to be frank with Australians about the fact our living standards, including the social wage, have been bolstered artificially by running up debt for future generations to repay. Given rising costs, an ageing population and ever more sophisticated and costly treatments, the health system needs to be overhauled comprehensively, both federally and at state level.
The commonwealth, too, should provide leadership in spending reform. It can no longer persevere with a tax-and-transfer system in which one-third of working families receive more in benefits than they pay in tax.
Hard decisions need to be made after political leaders have considered all options.
