摘要：Australia's approach to allocating Commonwealth untied grants to States and Territories (the States) has given their equitable allocation precedence over issues such as efficiency, revenue stability, regional asymmetric shocks, accountability and transparency2. In recent years, the Commonwealth has left the determination of what is an equitable allocation of untied grants to the Commonwealth Grants Commission (CGC) who advises it on their allocation. An explanation for this approach might be that while ever States cannot agree on an alternative, the Commonwealth is not motivated to impose a different fiscal equalisation methodology to that applied by the CGC. However, there is reason to expect that in the future the Commonwealth might take a different view as evidence grows of pressure for a rethinking of current grant arrangements. This evidence includes
