The national cabinet of state and territory leaders was established in March 2020 to coordinate Australia's response to coronavirus, but it's not the first time the states and territories have had to work together for a shared end goal.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
On this day in 1959, The Canberra Times reported that the six state premiers had finally accepted a six-year tax reimbursement plan from the federal government at the annual Premiers' Conference in Canberra.
But the final agreement came after days of dramas and 'near breakdowns' as the premiers struggled to compromise.
New South Wales Premier Mr Joseph Cahill, claimed the Commonwealth's plan unfairly reduced the per capita payments between NSW and Victoria from 14/8 to 4/8 and asked for an additional £1,800,000.
Meanwhile, South Australian Premier Sir Thomas Playford argued there had been a £1 million miscalculation in the reimbursements South Australia was entitled to.
As a result, both premiers voted against the Commonwealth's original £242,500,000 offer.
The acting Prime Minister Mr John McEwan provided a compromise for both premiers and said that "on re-examination the Commonwealth would feel justified in granting NSW an extra £1 million."
Mr McEwan also agreed with South Australia's miscalculation claim and agreed to an additional £1 million for the state.
The amended plan brought "the total allocation for the base year 1959-60 to £244,500,000 for the six States" the Times said.
But the acting Victorian Premier, Mr Arthur Rylah, was still not satisfied.
The Times reported that "Mr Rylah hotly disputed the amended plan, claiming that it left Victoria 'odd man out'."
After Mr Rylah voted against the amended plan, the only premier to do so, it was up to federal treasurer Mr Harold Holt to try and convince him otherwise.
"The treasurer made a strong plea to Mr Rylah to reconsider his vote, as it would be unfortunate if a sense of grievance were perpetuated throughout the six-year term of the new formula," the Times reported.
Eventually Mr Rylah voted with the other premiers in favour of the plan.