Last year CoAG endorsed the Bracks Government's proposal third wave of national economic reform which included cutting red tape and human capital issues such as health and education that involved in investing in the capabilities of the Australian people. It was argued that the new national reform agenda could add 3 per cent to GDP after ten years from improved business efficiency and competitiveness, reduced red tape and increased labour force participation.

There seems to be little rush to implement the reform agenda at the moment. Though there is ongoing background work by the various working parties on the different issues, the cohesion between the states and the commonwealth appears to be fraying. You can see the fraying around the $10 billion federal administration of water, the states moving on carbon trading scheme without Canberra.