Harmonising of endless red tape is a must for business and states alike! Before Australians start to compete with each other, they must first compete with the rest of the world!
Massive simplification of our tax act and the trade practise act will enable just that, which in no way prevents states from competing with each other for business migration.
Setting a state up and running like a seriously down-sized corporation competing for customers, would assist just that very outcome; albeit, resented to hell and back by eternally unproductive, empire building, power hungry autocrats?
If Campbell Newman is genuine, rather than yet another perpetually pontificating and combative politician, then much of what his Govt administers, can be outsourced to voluntary unpaid boards, made up as they were in tough past times of recently retired or semi-retired professionals.
This would seriously reduce demands on the states limited budget, leaving open the possibility of reduced or repealed payroll tax; or, funds able to be diverted into overdue infrastructure, like say flood mitigating dams, which will enable and underpin many new wealth creating developments and decentralisation, west of the great divide. Don't ask how, just do it! Rhrosty.

A step in the right direction toward doing away with the federal government altogether.

This way it is not just about IR laws, but gives individuals more options in every area of life - if any one state's laws are draconian and unacceptably oppressive for someone, there is more of a chance they can find refuge in a different state.