Will we ever see a "fair" system of dividing the national tax cake between the states in a way which makes them totally content?
Pre GST we had the Grants Commission, and every year the premiers went cap in hand to Canberra to argue they were poorly treated and were entitled to a bigger share. Queensland was often targeted because of its disproportionately large share -- a hangover from the days when it was given more to build infrastructure across the wide plains.
The GST comes along, and, ditto -- premiers argue they are unfairly treated, Costello counter-argued they have breached their agreement and kept redundant state taxes AND the GST. They have their GST cake and eat it too.
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