The good and the bad of the budget

It results in people taking less responsibility for their actions. I would especially extend co-payments to things like state school fees (although this is a state issue). Even a token payment would lead to increased parental buy in and that necessarily means better educational outcomes. And if I had my way entirely, school grants would be paid directly to families to use as they see fit, while all schools would be required to charge fees.

However, these criticisms aside, the budget did have some good points.

The carbon tax and mining tax are going.

Cutting back on spending and the axing or merging of the many frivolous government entities is the right thing to do. This is where most of the savings come from, even if our nation will spend $30 billion more this year than it earnt. That's $1,200 debt in the last 365 days for every man, woman and child.

There have been 230 Federal programs abolished and 70 agencies, bodies or boards given the flick. The climate change agencies were a prime target and it seems many have been cut. That's good news. But there are many more to go.

A big win is the $2.5 billion in savings achieved from the sensible and humane measures undertaken to stop people smuggling. Six more detention centres will close.

Finally, this budget has highlighted a glaring problem in the state of our Federation.

For too long, Canberra has interfered in the roles and responsibilities of the states. It controls their income and it controls their expenditure. Every election, both sides of politics promise grants for a hospital here, a road there and a new school program. It's bad policy, bad governance, bad for holding anyone to account and bad for competition.

The states are dependent on the Federal Government due to mission creep centralisation by successive Labor and Liberal administrations. It should not be this way and the states should be free to raise their own revenue, provide their own services and compete with each other.

Hockey has thrust this problem into the spotlight by simply cutting back on Federal payments while citing the fact the Canberra should not be responsible for schools and hospitals. It's true. But it's also cheeky.

You can expect a debate to begin almost immediately about an increase to the GST. That's not necessarily a bad thing.

It could lead to real taxation reform, including lower income tax and result in a much clearer delineation of responsibility between the levels of government.

And if that happens, it means this budget will have kick-started the most necessary and most required debate about federation that Australia hasn't had since World War Two.