I’ve aimed to give you a flavour of what we are doing to modernise Commonwealth–state relations—and to give you two examples of the types of reforms we will be able to deliver, building on this new federal platform. My examples have focused on school reform because it brings together two of my longstanding policy interests. Education is both economic policy and social policy. It is now the key policy area where good economics and good moral values combine to produce the best results. This is the reason why social democratic parties around the world run for office promising their three top priorities will be ‘education, education and education’. In a world of technological change and globalisation, we owe it to the next generation of Australians to provide the best possible education. This matters for all children—but it matters especially for the most disadvantaged.

For Labor, better schools are the cornerstone of a decent society. Indeed, quality schools might well be the best anti-poverty program available. Education increases productivity and participation, it builds prosperity and it also offers the hope of breaking the intergenerational cycle of poverty.

Modern federalism will enable us to finally undertake bold reforms to Australia’s school system—notwithstanding the fact that the responsibility for schools policy in this country straddles Commonwealth–state boundaries. Our modernisation of the federation is driven by the same practical spirit that inspired Federation itself: a desire to create systems that stand the best chance of delivering for the Australian people.

We want to encourage innovation and problem solving at the local level—providing states with greater budgetary flexibility in return for greater transparency and accountability. And we are committed to major reforms to make public services work better, which we are backing with substantial new funding. Underpinning what we are doing is what I have called ‘the Australian way’. The Australian way is the idea that we are all richer when we are able to participate in the economy, that inequality is bad economics and that better education is vital to creating a better society.

For me, these are moral certainties and they inspire the reforms that we are undertaking today.