Jim Chalmers in to adopt NZ economic ‘wellbeing’ plan

Jim Chalmers has backed a new National Federation Commission to support the adoption of New Zealand’s’ ‘wellbeing’ economic framework and lift Australians out of poverty.

Jim Chalmers in Question Time in Parliament House in Canberra. Picture: Sean Davey.

Jim Chalmers has backed a new National Federation Commission to support the adoption of New Zealand’s “wellbeing” economic framework and lift Australians out of poverty.

The opposition treasury spokesman said on the back of the national cabinet, federation reform must be implemented to help “better measure what matters”.

Delivering a speech at the launch of Everald Compton’s Dinner with the Founding Fathers book in Brisbane on Thursday night, Mr Chalmers said a Commission could support “steps towards a wellbeing framework like New Zealand’s”.

“In doing so the Commission could act as a bridge between different government levels, to better align funding and service delivery by measuring local outcomes and advising on how governments can work together,” Mr Chalmers said.

“This would allow us to undertake more effective place-based interventions to target social mobility in concentrated communities of disadvantage.

“Federation reform matters but only if it’s a prompt to better measure progress, identify what policies are working, which are failing, and correct them before we leave communities behind.”

Mr Chalmers said “outcomes for real people in real communities should be the touchstone” for federation reform.

“We can properly recognise the First Australians. Have an Australian head of state. Fixed four-year terms. We can ensure that intergenerational disadvantage doesn’t cripple our communities and divide our nation as we emerge from COVID-19,” he said.

Mr Chalmers said in recent years the federation had “reached an impasse” and criticised the effectiveness of Scott Morrison’s national cabinet.

“When it was formed in May to replace COAG it was lauded as new era of co-operation and compromise. But even from the get-go, there were concerns about how it would translate its initial success early in the crisis to comparable success in the recovery.”

“Unfortunately, these fears are being realised. Over six months we’ve seen both the great potential and the historic frustrations of our federation on show. But on its own COAG via Zoom won’t cut it.”

Mr Chalmers said any vehicle for cooperative federalism must include a local government voice and support from “institutions, structures and processes that prioritise and incentivise our leaders to build a functioning federation and focus on jobs”.

“The economic challenge we face going forward is the biggest in almost a century. Almost a million Australians are unemployed. To tackle this jobs crisis, we need federal co-operation more than ever.”

“More engagement, not less. But we need the federation to be supported by structures that provide continuity beyond the political cycle – so a culture of problem-solving can overcome blame-shifting and bargaining.

“An approach that empowers communities from the bottom up. Where the fiscal firepower of the Commonwealth can be directed to areas of the greatest need, not used as a trump card on an already tilted table.”

Mr Chalmers said a COAG Economic Reform Council, which Bill Shorten took to last year’s election, should be considered and given the autonomy to “examine, track and report to COAG on long-term reform priorities”.