I began by suggesting that while reform of Commonwealth–state relations might not appear to be an exciting subject for discussion, it is absolutely crucial to national economic and social planning for the next generation and beyond.

While Australia is adequately served by its constitutional arrangements that are now more than 100 years old, we must recognise that we have failed to achieve the right balance of shared responsibility and fiscal discretion between our state and federal governments.

In addition, we must heed Donald Horne’s nearly 50-year-old call to action, to realise that the days of the lucky country are well and truly numbered and that substantive action is required if we are to become the clever country, or the innovative country, or the prosperous country.

For this to occur, a joint approach between the Commonwealth and the state governments is crucial to laying the groundwork for our future prosperity—implementing the National Reform Agenda and the National Innovation Agenda and meeting out water and climate change challenges.