Thats completely screwed up. If you wanted a strong central government you would want a unitary not a federal system.
The founding fathers envisioned a limited commonwealth (the cth government only has authority under 'exclusive powers' enumerated in the constitution, and the states have 'residual powers' everything else.
None of the Constitution’s framers would ever have imagined, back in the 1890s or in 1901, that a century or so later the Australian States would be as emasculated as they are today: that they would be so dependent upon the Commonwealth for their governmental finances.
More specifically, none of the framers would have anticipated that the ‘corporations’ power (s 51(xx)) would be held to allow the Commonwealth to take over the field of industrial relations; that the ‘external affairs’ power (s51(xxix)) would be deemed to enable the Commonwealth to enact far-reaching environmental, human rights and industrial relations laws; or that the States could be cajoled into abjuring income tax powers, not least because four federal statutes — passed at the same time (during the Second World War) and consecutively numbered — were assessed or judged individually (and, of course, held to be valid) and not as part of a package.
Put simply Australia doesn't work because it is a federation trying to behave like a unitary system.
And NSW does well because it gets the lions share of GST revenue allocations.