NSW revolts against commonwealth and states' cost-shifting 'mess'

NSW treasurer Dominic Perrottet announces review of financial relations with Canberra as Victoria watches 'carefully'

New South Wales may have sparked the latest federation stoush, with Australia's largest states open to a potential review of state-federal funding arrangements.

The NSW treasurer, Dominic Perrottet, called the financial relations between the commonwealth and the states "a mess" in his budget speech, while announcing an expert panel to review the arrangements.