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Vic looks to federal-state relations reset

Victoria is demanding an overhaul of 'chaotic and punitive' commonwealth-state relations and says Canberra must stick to its funding agreements.

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Source: AAP


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Victoria is calling for a reset of "chaotic" commonwealth-state relations and greater certainty for funding agreements.

Labor Treasurer Tim Pallas says Canberra must stop unilaterally changing agreements "when it suits them", which leaves states to deliver programs after funding is withdrawn.

"There needs to be a reset of the chaotic and punitive approach we have seen to date," Mr Pallas told the McKell Institute in Melbourne on Monday.

"We give the federal government a say in determining state policies and programs on the expectation that the funding it provides will continue.

"All too often though, agreements are abandoned and funding is withdrawn."

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Mr Pallas is expected to raise his concerns with federal Treasurer Scott Morrison at Friday's Council on Federal Financial Relations in Sydney.

In a statement, Mr Morrison said he looked forward to a "constructive discussion" with state and territory leaders.

Mr Pallas further criticised the Turnbull government for going out of its way to be "unpredictable and unreliable", with Victoria often left to learn about funding decisions via media reports

"States need to be treated by federal governments as partners, not serfs," the Victorian treasurer said.

He pointed to the National Disability Insurance Scheme-related Medicare levy, a proposed GST revenue shake-up and national energy guarantee, interventions in state resources policies, and the previous Abbott government's funding cuts for schools and hospitals as evidence of federal unreliability.

"A more collaborative and co-operative approach is required from all sides," he said.

Friday's discussions will cover a range of issues, including the energy guarantee aimed at reducing power prices and helping control emissions, Mr Morrison said.


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