Essays on Federalism Creates Both Advantages and Disadvantages for Business Coursework

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The paper "Federalism Creates Both Advantages and Disadvantages for Business" is an outstanding example of business coursework.   Federalism is very important for the development of business and the economy of the nation. A diminution in Federal-State relations has an adverse effect on business and reduces the latter’ s productivity. In the past decade, the revenues of the government have increased in an unprecedented manner and generated $87 billion in additional revenues. This beneficial development has served to reduce pressure to review inefficient policies, such as federal state duplication and the imposition of unwarranted regulations on businesses (Milliner, 2008).

However, it is to be borne in mind that even a strong economy cannot hide inefficiencies for a long time. In Australia, the federal and state governments have not been able to work in a coordinated manner on issues of national importance. In the absence of proper federal-state relations, businesses face a number of constraints and find it difficult to invest in new projects, become innovative, procure qualified staff, compete and expand their businesses. Moreover, companies have to function under different state rules, and they have to adopt different planning strategies in different states.

This hinders their expansion and growth. In addition, some companies have found it difficult to provide employment to eligible aspirants (Milliner, 2008). Moreover, audit regimes differ from state to state, and the larger companies have to undergo multiple audits for the same infrastructure project at different levels of government. This has resulted in deferred investments. The outcome of these constraints is that the people of Australia experience higher prices, less choice, fewer job opportunities and lower returns on investments (Milliner, 2008). The Business Council of Australia (BCA) has been conducting research in areas that are crucial to the economic and social prosperity of Australia.

It has conducted research in areas like infrastructure, innovation, education, regulation and taxation (Milliner, 2008). Most of the leaders of business ignore federalism, and the additional cost resulting from a different state and federal regimes is passed on to the consumer. In general, there is a diversity of laws between countries. However, in addition, Australia depicts diversity between the laws of the states (Roskam). The federal government assumed charge of industrial relations, and this was accepted willingly by the business community. The business community is justified in fearing centralised power.

A powerful government denotes an ambitious government. If the Australian government were to be accorded greater power, it would exercise greater control over policy matters including those relating to business. It is acceptable for laws to vary between nations; however, there should be no variance of laws within a specific country (Grabosky & Braithwaite, 1993). A section of the present stock of corporate reform seekers may not be aware of the Ben Chifley regime of the past.

Those who had heard of the excesses of that regime could even contend that in the globalised economy, no Australian government would dare to harm the business community (Craven, October 17, 2006, Pg. 12 ). The quality of education differs from state to state. Therefore, if the quality of education in some states deteriorates, education in the other states remains unaffected. However, if education is centralised, then the whole educational system could be at risk of failure (Craven, October 17, 2006, Pg. 12 ). This concept applies to all policy areas from transport to health.


List of References

Business Council of Australia. (n.d.). A Charter for New Federalism. Retrieved October 4, 2009, from

Craven, G. (October 17, 2006). Business gets its absolutes out of order. The Australian (Australia) .

Diamond, L. J., & Plattner, M. F. (2006). Electoral systems and democracy. JHU Press.

Flint, D. (2007, September 14). Fiscal balance must prevail. Retrieved October 4, 2009, from Online opinion:

Grabosky, P., & Braithwaite, J. (1993). Business Regulation and Australia's Future. Retrieved October 5, 2009, from Australian Institute of Criminology:

McLean, I. (2002, November 25). Fiscal Federalism in Australia. Retrieved October 5, 2009, from

Milliner, R. (2008, September 12). Making Federalism Work: The Economic Imperatives. Retrieved October 3, 2009, from

National Workers' Compensation And Occupational Health And Safety Frameworks. (2005, March 15). Retrieved October 5, 2009, from Australian Council of Trade Unions:

Phillips, K. (April 14, 2006). Federal scheme a monopoly buster. The Age (Melbourne, Australia) .

Roskam, J. (n.d.). Federalism and the Liberal Party. Retrieved October 3, 2009, from

Twomey, A., & Withers, G. (2007, April). Australia's Federal Future: Delivering Growth and Prosperity. Retrieved October 4, 2009, from

Williams, P. (August 21, 2007). Disputes abound in a complex and fragile relationship. The Courier Mail (Australia) .

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