Centralism by stealth

According to the Liberal Party platform, this is how Australian federalism should operate.

Alternatively, one can say that Australia is an integrated common market, with people and companies commonly undertaking activities across state borders.

Moreover, Australia exists in a globalised world, with the complication of different rules in different states a reason not to come to Australia.

In this case, there to be only one set of rules (usually encapsulated in legislation) made by one legislative body – in our case, the Australian Parliament.

The states would have the role of (effectively) an English county council, concentrating on service provision based on national standards.

A "seamless" national economy achieved in the manner anticipated by Tanner.

Now, the way the current system works is that when the "governor's club" that is COAG makes the decision to "harmonise" regulation, a working party of public servants broadly determine the contents of legislation.

Their recommendations are then forwarded to a COAG committee or working group, which then passes it to COAG itself, for final endorsement.

If it is constitutionally appropriate for the states to legislate so as to achieve harmonisation, one state will develop and pass model legislation through its parliament with the remaining states or territories subsequently passing legislation that picks up the model legislation.
 
Whilst nominally capable to amend legislation, state parliaments – including those chambers without ALP majorities - have typically accepted the national legislation without batting an eyelid, on the grounds that "COAG decided".

This system can give rise to what can be called a "democracy deficit".

When harmonising up to nine separate systems into one, some laws in force in some states will either be changed or abandoned.

As well, larger players with both ample resources and the knowledge of how the less than transparent COAG process operates can influence the system so that legislative outcomes reflect their interests.