Feds offer dollars for state reform

Commonwealth Treasurer Wayne Swan is set to announce a new round of cash incentives to the state governments in an attempt to reinvigorate national economic reforms.

Money to push the state governments to implement regulatory reforms dried up under the Howard government, stalling the progress of much-needed measures to increase productivity and cut red tape.

According to The Australian Financial Review, Swan will link payment of money to objective outcomes by the states. The proposal will be presented to the states in a meeting with key Federal Government figures on Monday.

The meeting will also look at how a promised $150 million in additional funding from the Commonwealth will be used by the states to reduce elective surgery waiting lists.