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That's just a supply chain issue. If the States were responsible for raising revenue via income tax and GST, they'd have the ability to fundJobKeeper too.
Yes that would be the ideal situation where the States can then compete for population via tax. That would actually keep the States in line and stop the clowns in WA winging year in year out about hard done by they are. The stupidity of the current is system is that it encourages largess by the States as there is no fiscal responsibility or consequences. They can just screw up with bad policy then go cap in hand to Canberra with a hard luck story.