Policies > Cost of state governments

How to save at least $30 billion each year if we had no state governments:

(9+4+1+1+4+12) =31

Health Duplication - $9 Billion on non essential administration between the different layers of government. (see bottom of page for more information).

Education spending duplication - $4 Billion on non essential administration between the different layers of government

Cost of 6 state premiers - $1 Billion per year

Cost of 6 state treasurers- $1 Billion per year

Other costs of 6 state parliaments/ general administration - $4 Billion per year (political staffers, planners, consultants, rents, expenses)

Transport inefficiencies - Cost the nation $12 billion each year in lost productivity due to traffic congestion that state governments have ignored the problem for decades. This is expected to rise to a $20 Billion annual cost by 2020.

This comes to $31 Billion. The cost is still rising as politicians give themselves pay rises and traffic congestion costs rise every year. The savings to abolish state governments is going to grow every year. I estimate by 2030, we will save ourselves $50 Billion each year by not having state governments.

Other costs:

Retirement - the cost in retirement of the current batch of state politicians is $2 Billion dollars.

(the average retirement pension is $100 000 per year, x the 500 state politicians living on average 40 years after they leave parliament). This figure excludes state politicians who served in previous parliaments in the 70's, 80's, 90's etc. It excludes new politicians who get elected at new elections. They get very generous retirement payments - and we pay for it every year and after every election it gets worse.

Business costs - The businesses in Australia have a tough time sorting through the different state government laws that each new parliament thinks of. The Business Council of Australia estimated that one large Australian business that has operations across Australia has compliance costs of around $4 million each year. If the largest 3000 businesses in Australia have similar cost the the total is $12 Billion each year in unnecessary administration to satisfy each state governments statutory requirements. This $12 billion cost is passed on to other businesses in the form of higher prices and these higher prices make Australian businesses less internationally competitive and makes the Australian consumer pay higher prices. There are over 1 million businesses in Australia, the $12 billion could be much higher

(So when you add up all the costs associated with state governments - it costs our nation about $45 Billion per year to have state governments, but as a conservative figure we say $30 Billion each year to keep the critics happy).

$30 Billion is 6% of the total tax received by the three levels of government of $500 billion. Any organisation, any household can cut expenses by 6% but not our government. Labor and Liberal find reform too hard.

For more detail on the Health Spending:

The National government spends $4 Billion in administration costs to work out how much health funding to give to the state governments each year.

The state governments collectively spend another $ 3 Billion in administration costs to work out how much health funding to give to the Area Health Services.

The Regional Health Services collectively spend another $ 2 Billion in administration costs to work out how much Health funding to give each hospital in that area health service. The above figures are growing each year.

That is $A 9 billion wasted in political administration each year before one Australian patient is treated by a doctor or nurse. That $A 9 billion should be spent on more hospital beds and GP clinics that offer free doctor's consultations to Australian people. We have so many layers of government administration for each area of government spending. We have to many layers of government in Australia and you are paying for it.

	Become a fan on Facebook
	Follow us on Twitter
	Become a member of No State Governments
	Share on Facebook
	Share on Twitter

The newsletter will inform you periodically about No State Governments.
Your email address
Subscribe	Unsubscribe

Policies > Cost of state governments

How to save at least $30 billion each year if we had no state governments:

Read more... Policies