Topic 7: Federalism in Australia Flashcards
(31 cards)
What is fedralism?
A system of government where power is constitutionally divided between a central authority (the Commonwealth) and regional authorities (states/territories). Each level has sovereignty in some areas.
What is fiscal federalism?
The financial relationships and arrangements between levels of government, especially how the Commonwealth uses its superior financial powers (taxation and grants) to influence and control state governments.
What is cooperative federalism?
A model where the Commonwealth and states collaborate to address issues of shared interest. It respects the autonomy of states while working toward common goals.
Seen in policies requiring coordination, such as COAG’s National Ice Strategy.
What is coercive federalism?
The Commonwealth imposes its policies on the states, often through financial leverage (tied grants).
Section 96 has enabled this coercive trend, transforming cooperative structures into instruments of Commonwealth control.
What is Vertical Fiscal Imbalance (VFI)?
Occurs when the Commonwealth collects more revenue than it needs, while the states collect less than they need. Currently, the Commonwealth collects 80% of revenue but only accounts for 50% of spending. This makes states reliant on federal funding. VFI is the product of the High Court’s validation of Commonwealth taxation laws (Uniform Tax Case).
What is Horizontal Fiscal Equalisation (HFE)?
Ensures all Australians have access to comparable public services regardless of the state’s wealth. Administered by the Commonwealth Grants Commission using a formula to distribute funds fairly among states. It seeks equity between states such as WA (resource-rich) and Tasmania (with fewer internal revenue sources).
What is the federal balance of power?
The federal balance of power refers to how legislative and financial powers are shared or divided between the Commonwealth and the states. It can shift over time due to:
- High Court interpretations
- Use of S96 tied grants
- Financial dominance (VFI)
- Successful constitutional referenda (1946, 1967).
Since federation, the trend has overwhelmingly shifted in favour of the Commonwealth.
What is coordinate federalism?
A traditional model of federalism where the Commonwealth and states operate independently in their areas of power with minimal overlap or interference. Has been replaced by cooperative or coercive forms due to VDI and increasing Commonwealth use of grants.
What is the Doctrine of Implied Immunities and Instrumentalities?
This doctrine was established to prevent the Commonwealth and states from interfering with each other’s operations. For instance, in the Railway Servants Case (1906), the High Court ruled that the Commonwealth could not legislate over state employees, protecting state sovereignty. However, this doctrine was abandoned in later cases, such as Engineers’ Case (1920), which significantly broadened Commonwealth power and diminished the protections of this doctrine.
What is Section 87?
This is the ‘Braddon Blot’. This required the Commonwealth to return 75% of customs/excise revenue to states for 10 years post-federation. Named a “blot” due to concerns it unfairly favoured smaller states. The provision expired and was not renewed, contributing to the Commonwealth dominance and its financial power.
What is Section 96?
This is ‘Grants Power’. Allows the Commonwealth to make financial grants to states on conditions it sees fit. Section 96 has become one of the most powerful tools in shifting the federal balance. It allows the Commonwealth to bypass constitutional restrictions and influence residual powers (like education, infrastructure) using conditional tied grants.
An example is the National School Chaplaincy Program (NSCP) is funded via tied grants following the Williams cases.
What is Section 106?
Continues the existence of state constitutions.
What is Section 107?
Preserves state powers unless exclusively transferred.
What is Section 108?
Existing state laws continue post-federation unless inconsistent with federal law. These provisions form the legal basis for state sovereignty within the federation.
What is Section 109?
Provides that when a state law is inconsistent with a Commonwealth law, the Commonwealth law prevails, and the state law is invalid to the extent of the inconsistency. This section is crucial in maintaining federal supremacy in concurrent areas and ensures a consistent legal framework across Australia.
A key case is WorkChoices (2006), where the High Court upheld Commonwealth legislation under the corporations’ power, overriding several state industrial laws.
What is the National Federation Reform Council (NFRC)?
Established in 2020 to replace COAG. Comprises the National Cabinet and various reform councils. Intended to improve efficiency and responsiveness of intergovernmental relations. Focuses on critical areas like health, education, and economic recovery. It reflects on the increasing executive centralisation.
What are exclusive powers?
Only the Commonwealth can legislate (S90 customs/excise and S115 currency).
What are concurrent powers?
Shared powers (s51(ii) taxation). If inconsistent, s109 gives Commonwealth law priority.
What are residual powers?
Powers not listed in Constitution (education, criminal law, health). Remain with states but increasingly influenced by Commonwealth via S96 grants.
What are the roles and functions of COAG?
The Council of Australian Governments (1992–2020) facilitated cooperation between Commonwealth, states, and territories. Focused on national priorities requiring joint action, such as NDIS and anti-terror laws. Enabled collaborative federalism and strategic policy development.
What are the roles and functions of the National Cabinet?
Created in response to COVID-19 to coordinate federal and state policy in health, economy, and crisis management. Made permanent in 2020. A smaller, more streamlined version of COAG. Operates with greater frequency and flexibility.
What are the various grants administered by the Commonwealth Government?
1) General Purpose Payments (GPPs): Untied grants — states have discretion over spending (GST revenue)
2) Specific Purpose Payments (SPPs): Tied grants with strict conditions. Used in education, healthcare, housing.
3) National Partnership Payments (NPPs): Conditional payments negotiated under agreements to support reforms. All forms of grants allow the Commonwealth to exercise power over areas constitutionally under state jurisdiction.
What is the Engineers’ Case (1920)?
S51(xxxv): Overturned the doctrine of implied immunities and instrumentalities. The High Court adopted a literal interpretation of s51, vastly expanding Commonwealth legislative power and allowing it to legislate over state employees.
What is the Railway Servants Case (1906)?
S51(xxxv): Concerned whether the Commonwealth could legislate industrial relations for state government employees. The Court ruled that the Commonwealth could not extend its arbitration power to state employees, affirming the implied immunities doctrine and protecting state sovereignty. This case was later overturned by the Engineers’ Case.
