Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Hansard source

Not a cut; a lower rate of increase. We were absolutely upfront about this pre-election, and we have been absolutely upfront about this in the budget.

I appreciate that some of the state premiers are unhappy about this. I appreciate that. I should also point out that they are very happy about the infrastructure spending in the budget, and, yes, as far as the states are concerned there are swings and roundabouts. There are some things that they do not like; there are some things that they do like. But what we have done is given them at least three years to prepare, and I am looking forward, through the federation white paper process, to a constructive and collegial dialogue to improve our federation and to try to ensure that the states and territories are sovereign in their own spheres.

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