This governance failure is characterised by limits to the democratic legitimacy of State Governments in transacting urban policy, foregone opportunities to efficiently fund infrastructure from land taxes and the development process and severe vertical fiscal imbalance which has cultivated generally unhelpful involvement by the Australian federal government in cities.
The paper further argues that the creation of genuine metropolitan governments is essential if Australian cities are to realise their full potential. A reform pathway is discussed whereby the Commonwealth (the Australian federal government) would facilitate the formation of metropolitan governments by sharing the national tax dividend from better cities with the States.
SGS Principal and Partner Marcus Spiller presented this paper to the Greater China - Australia Dialogue on Public Administration 2018 Workshop in Shanghai, September 2018.