Chapter Four

Question 1

Define Autonomous Power

Answer 1

The concept that each level of government in a federal system has the right to make laws over their designated areas of authority.

Question 2

Define Federal Compact

Answer 2

A division of powers between the Commonwealth government and the State governments.

Question 3

Define Federal Balance

Answer 3

The existing balance of powers between the Federal and State level governments.

Question 4

Define Constitutional preamble

Answer 4

It sets out the purpose of the act, and gives it authority under the Queen and the House of Commons to unite the six states into one country.

Question 5

Define Exclusive powers

Answer 5

Areas that only the federal government can create laws in such as coining money or raising armed forces.

Question 6

Define Concurrent powers

Answer 6

Areas that the State and Commonwealth governments can act in, Commonwealth law will always override a state law if there are any discrepancies.

Question 7

Define Residual powers

Answer 7

Any power that is not listed in concurrent powers or exclusive powers are the responsibility of the State governments.

Question 8

Define Convention of the constitution

Answer 8

The Westminster conventions associated with the constitution that have been left out, such as that the Governor General must follow the advice of the Prime Minister.

Question 9

Define The State’s house of Review

Answer 9

What the senate was intended to be in the constitution, a house where the states could review any decision made in the lower house.

Question 10

Define The People’s House of Government

Answer 10

The house represented by the people, it is able to initiate money bills.

Question 11

Define Coequal Powers

Answer 11

The concept that the upper and lower houses both have the same powers, save that fact that the lower house can initiate money bills and the upper house cannot.

Question 12

Define Double Dissolution

Answer 12

If the Senate blocks one specific bill once, and then after three months it blocks it again, the Governor General can call a double dissolution election in which both houses of parliament are dissolved.

Question 13

Define Express Powers

Answer 13

The powers of the Governor General that are exercise on behalf of the Parliament, such as being commander in chief of the armed forces.

Question 14

Define Original Jurisdiction

Answer 14

The jurisdiction of the High Court to interpret all constitutional disputes.

Question 15

Define Appellant Jurisdiction

Answer 15

The jurisdiction of the High Court to hear cases that have been appealed up through the court hierarchy.

Question 16

Define Constitutional Referendum

Answer 16

Explained in section 128 of the constitution, if the constitution is to be changed at all then it must be voted on and receive ad double majority both among the states and the people.

Question 17

Define Westminster Conventions

Answer 17

The conventions not mentioned in the constitution which are expected to be followed. These include rules such as the Prime Minister must be a member of the lower house and so must the ministers and the Prime Minister and Ministers must have a majority in the lower house to be able to form government.

Question 18

Define Vertical Fiscal Imbalance

Answer 18

A situation in which the State governments are spending more money than they are earning and likewise the Federal government is earning more money than it can spend.

Question 19

Describe why dual federalism appealed to the writers of the Constitution in 1901

Answer 19

Dual federalism appealed to the writers of the constitution because it gave the states a level of local autonomy roughly equal to that of the commonwealth. This is what most states wanted from unification at the time, the benefits of a unified nation whilst still being able to administrate their local government.

Question 20

Summarise the main provisions of the Australian Constitution

Answer 20

Chapter one creates a federal parliament, detailing a bicameral parliament with coequal powers. Chapter two creates a federal executive, giving all executive power to the Queen and in her absence the governor general. Chapter three creates the original jurisdiction of the high court. Woven throughout the entire constitution is a division of powers between the state and federal governments, and also the last section creates the process of referendums.

Question 21

What is the ‘federal balance’ and explain how it has shifted since federation.

Answer 21

The federal balance is the balance of power between the state and commonwealth levels of government. At federation the balance of power was very much so in the hands of the State Governments, however now it has swung to the opposite with the commonwealth having the most power. The factors that have led to this shift are referendums, referral of powers and un-challenged legislation, financial power and high court judgments.

Question 22

Explain what is meant by the term ‘referral of powers’

Answer 22

If the State governments can no longer maintain areas of responsibility they can voluntarily relinquish them to the Commonwealth, an example the Tasmanian government giving their powers of railways to the Commonwealth.

Question 23

Give Reasons as to why the Commonwealth has become the dominant financial partner in the federal relationship

Answer 23

The Commonwealth has become the dominant financial partner because of its seizure of the income tax, tied grants, high court decisions and the constitution. The constitution gave the Commonwealth exclusive control over customs and excise duties, which at federation was the nation’s highest income source. Over time however, the Commonwealth gained the power to issue personal and company income tax under the Uniform Tax Agreement in 1942 which was designed for the war. This forced the states to rely on imposing their own tax, or accepting tied grants from the Commonwealth government. Judgments of the high court have also over time increasingly ruled in favour of the Commonwealth, which contributed to an overall vertical fiscal imbalance which increased the State’s reliance on tied grants.

Question 24

How are states able to maintain power within the federal balance?

Answer 24

There are some very important residual powers that are left to the states, such as public health and education as well as areas of criminal law. The States can still collect revenue through sources such as payroll tax, stamp duties, land tax and also fees and charges.

Question 25

Explain the GST and the problems that arise with it?

Answer 25

The GST tax is a tax imposed on the purchase of all goods and services, collected by the federal government but allocated to the states. The purpose of the tax is to create horizontal fiscal equalisation, that is trying to equalise the economy of each individual state. This means that if one state is undergoing an economic boom and another is struggling, one state will receive comparatively less than the other state. This causes problems such as increasing tension with the state of WA which receives a far smaller proportion of the GST then it creates.

Question 26

Explain the role of local governments

Answer 26

Local governments do not have independent authority and must follow legislation laid out by the State government. There are huge differences in population sizes and physical areas within all the local governments. They have areas of responsibility such as maintaining local parks, supporting local sports clubs and maintaining rubbish collection policies. They can generate revenue through local fees and rates on properties.