Fiscal Equalisation in Australian Federalism: Share and Share Alike?

The sharing of revenue between the states to achieve fiscal equality has long been an important and internationally notable feature of Australian federalism. While horizontal fiscal equalisation is always prone to dispute, unprecedented conflict erupted in the Australian system in the second decade of this century and resulted in changes that brought the long‐standing principles of the system into question. Central to both the origins and the crisis of the equalisation system was the State of Western Australia, a long‐time beneficiary transformed into a much‐aggrieved donor. This article outlines the history and nature of the system before analysing the causes, character, and consequences of the 2018 changes.