2020 Review - Consultation

Draft Report

On 25 June 2019, the Commission provided the Commonwealth Treasurer with the draft report for the 2020 methodology review. The report was a consultation document on the data sources and methods the Commission proposes to adopt in its final report. State submissions on the draft report were received in September and October 2019.

Draft Report

Submissions

Consultation on specific issues

During a review, we consult on various topics outside the normal consultation rounds.

Revenue Consultancy

The Commission has undertaken a consultancy to produce estimates of the elasticities of State revenue bases with respect to differences in tax rates. The results of this consultancy could be used to inform the Commission’s decision on whether to make elasticity adjustments to its measures of States’ revenue bases in the 2020 Review. Appendix Two of the consultants’ report addresses States’ comments on the estimation of elasticities.

Urban Transport Consultancy

The Commission has undertaken a consultancy to re-examine its assessments of State urban transport recurrent and infrastructure expenditure as part of the 2020 Review.

The Commission decided to break the consultancy into two stages. The first stage investigated the theoretical framework for considering State and Territory urban transport expenditure, identified potential expenditure drivers and evaluated the available data. Stage two strengthened and refined the theoretical framework established in stage one, and built a functional model around this framework.

Consultants' Reports

Submissions

Improving the policy neutrality of the Mining revenue assessment

Mining revenue is an area where policy neutrality concerns can arise when a State has a dominant share of the production of a mineral. Commission staff are seeking views on whether the Commission should improve the policy neutrality of the mining assessment and, if so, how it should do that. Submission on this issue are due by 25 January 2019.

Staff discussion paper

Substitutability Levels for the Health Category

For the 2020 Review, the Commission is re-estimating the substitutability levels for the health category to inform the calculation of non-State sector adjustments. This paper describes the approach staff have taken in reviewing the levels of substitutability and the estimated levels for each Health component. Staff have also proposed the most appropriate indicators for measuring non‑State sector services.

Staff discussion paper

Submissions

Approach To Estimating Administrative Scale

Re-estimating the quantum of the administrative scale costs is a priority for the Commission in the 2020 Review. This paper describes the approach staff intend to use and provides our initial estimates of administrative scale costs for the education and health functions.

Staff discussion paper

Submissions

Staff draft assessment papers

On 20 April 2018, we released a series of staff discussion papers on draft assessments for the 2020 Review.

Submissions

Submissions received on the staff draft assessment papers and quality assurance strategic plan, as well as the Commission position paper on The Principle of HFE and its Implementation.

Staff research papers

The Principle of HFE and its Implementation

On 12 May 2017, CGC staff released a staff discussion paper on the objective of horizontal fiscal equalisation (HFE), supporting principles and guidelines, and associated implementation issues. Following consideration of submissions, the Commission released a position paper on the topic.

Commission position paper

On 27 September 2017, the Commission released a paper on its interim positions on the objective of horizontal fiscal equalisation (HFE), supporting principles and guidelines, and associated implementation issues. The positions taken in the paper will provide initial guidance for the Commission’s further work on assessment methods, but will remain open to further consultation and possible adjustment over the course of the review.

Submissions

Submissions on this paper are included with submissions on the draft assessment papers.

Staff discussion paper

On 12 May 2017, staff released a discussion paper on The Principle of HFE and its Implementation. The discussion paper put questions on which the Commission was seeking views.

Submissions

Submissions on the staff discussion paper on The Principle of HFE and its Implementation.

Quality assurance strategic plan

The Quality Assurance Strategic Plan for the 2020 Review documents the processes the Commission will put in place to quality assure its work and to demonstrate that these processes have been implemented. This plan is a living document that will be updated to reflect developments in the Commission’s work programs, IT systems and business processes.

Submissions

Submissions on this paper are included with submissions on the draft assessment papers.

Work Program

On 1 December 2016, after receiving terms of reference for the 2020 Review, we wrote to Heads of Treasury seeking input into the work program for the review. A final program was agreed in early 2017.

Agreed Work Program

Letter to Heads of Treasury

State Responses