FORMER prime minister Bob Hawke has renewed his call for the abolition of the states and the redrafting of the Australian Constitution.

In a speech at Woodford Folk Festival, he said a new model of federalism that dumped the states in favour of a centralised government would "immensely" strengthen the democratic process.

Before a crowd of more than 1500, he argued that to create the ideal situation for Australia, in which it would optimise a caucus democracy, it would abolish the states.

Mr Hawke said in his vision for the perfect Australia, whichever party won the election would be able to select members of the public to sit in Parliament as members of the ministry.