Federalism

Question 1

Types of power included in federalism

Answer 1

Legislative power and financial power

Question 2

Sovereignty

Answer 2

Supreme power to govern

Question 3

Federalism

Answer 3

Division of sovereignty

Question 4

Federal balance of power

Answer 4

How sovereignty is divided

Question 5

Undivided sovereignty

Answer 5

Present in unitary systems with one central government such as the UK and NZ

Question 6

Australia’s federal system

Answer 6

Purpose of constitution was the create a federal system (outline how power was divided between the six colonies and newly created federal government), Division of power related to both financial and legislative powers of the Commonwealth and States, Founding fathers intended Australia to be coordinate (started) or cooperative however overtime it has become more coercive

Question 7

Coordinate federalism

Answer 7

Each level of government is relatively autonomous within its own sphere of influence

Question 8

Cooperative federalism

Answer 8

Even balance of power between central and regional governments, substantial cooperation, demonstrated in national cabinet

Question 9

Coercive federalism

Answer 9

Strong central government

Question 10

Exclusive powers

Answer 10

Power which may only be exercised by the Commonwealth Parliament, S90- customs and excise duties, S52- Commonwealth public service and the seat of federal parliament

Question 11

Concurrent powers

Answer 11

Lawmaking powers over which both the Commonwealth parliament and the State parliaments share jurisdiction, S51 (ii)- taxation, S51 (xxi)- marriage, S109- Commonwealth law prevails over states to the extent of any inconsistency

Question 12

Residual powers

Answer 12

Law making powers left with the states at the time of federation that aren’t listed in the constitution, S107- every power of the colonies remain with them unless otherwise specified in the constitution (saving powers of state parliaments)

Question 13

Financial powers- s51 (ii)

Answer 13

Taxation, states also raise taxes under this power (exception of customs, bounties and excises under s90)

Question 14

Financial powers- s87

Answer 14

Required the Commonwealth to pay the States 75% surplus revenues from s90 for the first 10 years

Question 15

Financial powers- s90

Answer 15

Customs bounties and excise, charge on goods crossing borders or forms of taxation applied to goods

Question 16

Financial powers- s92

Answer 16

Requiring interstate trade to be absolutely free

Question 17

Financial powers- s96

Answer 17

Commonwealth can determine the terms and conditions of the grants it makes to the states

Question 18

Cases do to with changing the balance in financial powers

Answer 18

Uniform tax case (1942)- commonwealth receiving income tax which is 57% of Australia’s tax, states challenged but ruling favoured the commonwealth, Ha and Hammond V NSW (1997)- defined “what is excise”, Cole and Whitfield (1998)- restriction on small lobsters was found to go against s92 as it was limiting trade of South Australian lobsters, Betfair (2008)- argued that it went against s92 for WA residents to bet on Tasmanian sports

Question 19

Vertical fiscal imbalance

Answer 19

When the expenditure of a level of government doesn’t correspond with its own sources of revenue, Federal government having excess revenue but the states having a deficit

Question 20

Horizontal fiscal equalisation aim and calculation

Answer 20

Aim is to ensure all Australians enjoy the same standards, whether their state of residence is richer or poorer, Commonwealth Grants Commissions calculates the size of grants to the states based on how much money each state needs to provide a level of government services to their citizens equal to other states

Question 21

Horizontal fiscal imbalance in the States

Answer 21

WA currently receives 70c back for every $1 under the distribution of the GST by the grants commission, States with low fiscal capacities are raised to the average fiscal capacity of states, All states are raised to the capacity of the fiscally strongest (currently WA), Remaining GST revenue is distributed to all states on an equal per capita basis

Question 22

How federal balance can be changed

Answer 22

Referendums (minimal impact)- unlikely to pass if it gives the government/Commonwealth lots of power, Voluntary referral powers and unchallenged legislation (minimal impact)- terrorism, family law (referred by every state except WA), Cooperative arrangements (increasing impact)- national disability scheme, Financial power (major impact), High court judgements (Major impact)- greatest agent of constitutional change

Question 23

Cases to do with legislative power changing balance

Answer 23

Peterwald’s case (1904)- s90, Railway servants case (1906)- s51 (xxxv), Engineers case (1920)- s51 (xxxv), Koowarta (1982)- s51 (xxix), Tasmanian dams (1983)- s51 (xxix), Workchoices (2006)- s51 (xx)

Question 24

Referral powers

Answer 24

Section 51 (xxxvii)- affects only the referring state, Rare as states are protective of their powers, Criminal law powers in relation to the crime of terrorism were referred in 2002, Family law powers were referred between 1986-1990 (except WA)

Question 25

National cabinet

Answer 25

Formed as an emergency federal forum to meet the challenge of COVID-19, Composed of the PM, premiers of States and Chief Ministers of Territories, Had an advantage of COAG as they could meet frequently (met weekly) and make rapid decisions, Showed the significance of States power- opening borders, elective surgery restrictions, now meet around every 2 months

Question 26

COAG

Answer 26

Peak ‘ministerial council’ of the federation, ‘Ministerial council’- PM, state Premiers, Territory chief ministers, president of the local government authority, Meets regularly to debate, plan and monitor programs that are jointly administered by the Commonwealth and States/territories, met twice a year