Rangers are at the top of the league table at the moment with 36 points from 13 matches, five points clear of Hibernian, who are currently second in the standings.
Both the clubs made changes to their respective squads in the summer transfer window, and Rangers midfielder Halliday believes that Hibernian’s team are better now than they were last season.
"I think Hibs have a very good squad this year,” the 24-year-old told STV. “In my opinion it’s a better squad than last year.”
Heart of Midlothian won the Scottish Championship title last season and gained automatic promotion to the Scottish Premiership.
Hibernian and Rangers finished second and third respectively and entered the playoffs along with Queen of the South, who ended up fourth in the standings.
After winning the Premiership playoff quarter-final tie against Queens, Rangers defeated Hibs in the semi-final but lost to Motherwell in the final.
Mark Warburton’s side are favourites to win the league title in the second tier of Scottish football this season, but they are likely to be given a run for their money by Hibernian.