Labor's Western Australia win renews federalism debate

Significance

The campaign was dominated by tensions with the federal government over the border controls instituted by Western Australia Premier Mark McGowan as part of efforts to limit the spread of COVID-19 in the state. These tensions have fed state-level concerns about the increasing reach of the federal government in Canberra.

Impacts

• Labor continues to dominate state governments across the country but remains in opposition at the federal level.
• States may seek a new revenue model, including the right to levy income taxes.
• Business groups may side with the states as they push for reforms in their relations with Canberra.