The Federal Government has paid $200 million to the states and territories in recognition of the 15 Seamless National Economy reforms which have been assessed as completed by the COAG Reform Council.
The 2011-12 reward payment recognises the 15 completed reforms up to the end of 2011, including the delivery of a national consumer law, standard business reporting, consumer credit reforms and a national health professionals registration and accreditation scheme, and provides an incentive to the states and territories to complete the remaining reforms in line with COAG agreed outcomes and timeframes.
These reforms are a key element of the Government's competitiveness and productivity agenda, which will help drive investment, jobs, innovation and growth in Australia's economy.
In determining the levels of reward payments for 2012-13 ($250 million), the Government will have regard to the extent to which remaining reforms have been completed, based on advice from the COAG Reform Council.
The Prime Minister has today written to the states and territories advising them that the 2012-13 reward payments will be paid dependent on the delivery by each jurisdiction on the final reform priorities, in particular the national occupational health and safety and trades licensing reforms.
Business continues to advise governments that a national occupational health and safety framework is its highest priority and the national benefits of this reform are supported by both the relevant COAG Regulation Impact Statement and assessments by the Productivity Commission.
Furthermore, under the licensing reforms, tradespersons, including electrical, plumbing and gas-fitting, refrigeration and air-conditioning, and property occupations, will require only one licence to work in all states and territories.
This will not only lower costs for business and consumers but also enhance workforce mobility and allow employers to hire interstate staff to address local skills shortages.
It is the responsibility of all levels of government to ensure regulations are in place to lift national productivity and facilitate the mobility and efficient allocation of resources.
The Productivity Commission recently examined 17 of the deregulation priorities and estimated that, with full implementation, these reforms could lower business and other costs by about $4 billion per year and, through improvements to productivity, increase GDP by over $6 billion in the longer term.
State/Territory Reward Payment (paid on a per capita basis as agreed)
ACT $3.220 million
NSW $64.212 million
NT $2.062 million
QLD $41.010 million
SA $14.725 million
TAS $4.533 million
VIC $49.554 million
WA $20.683 million