Australian federalism

Federalism in australia news

It drastically reduced their revenues and the States have become more reliant on the Federal Government to fund their services and projects through Section 96 of the Constitution. In relation to facilitation payments they are only paid if certain things are done, deemed to be reforms of national significance. Since , a statutory agency of the Commonwealth government, the Commonwealth Grants Commission, has been responsible for determining the way transfers are distributed among the States and Territories to accomplish this goal. At Federation it was pretty clear who had the power for what. This resulted in a very expansive definition of the corporations power in s. Governor Game to Lang, 13 May in B. The idea of replacing the states with regions defined along rational economic lines was an interesting feature of these results. These culminated in a draft Constitution that was put to popular vote in the individual colonies, and eventually approved by the electors, after a final round of changes met the higher threshold of support required in New South Wales. At the same time we have seen innovation and reform, some coming from above and some from below.

Inevitably any discussion of proposals for significant change, such as the republic or a bill or charter of rights, is caught up in an argument about these institutions, most particularly the states. What power and influence do they have in determining outcomes?

Federalism in australia essay

Resources mean power, power leads to temptation and more often than not temptation leads to coercion and control. We all have pride in what we do and the institutions we serve and this can blind us to the bigger picture. And when the Federal Government funds a service or a project, they may want some control over it. At the outset, Australia had a very low degree of economic integration, effectively comprising six parallel economies focused on trading a similar range of products with the outside world rather than with each other Mathews and Jay , There are a couple of other bits and pieces in other sections of the Constitution that outline Federal power, but unless it is described in the Constitution, the power was designed to remain with the States. Only a Bill of Rights can do that. In the absence of support for constitutional amendment, change has been effected in the largest part by: i coercive use of the spending power; ii centralizing constitutional interpretation by the High Court; iii coercive use of the international treaty power; and iv cooperation. He believes we should fund the States properly or get rid of them. Today, transfers contribute roughly 45 percent of State revenue and conditional grants over half of that. This is seen as creating an opportunity for reform of Australia s federal system of government. This is clearly demonstrated in the debate currently going on within the Commonwealth over the meaning of the words in the Murray—Darling legislation. The distribution of the GST to the states and territories was never going to be a successful resolution of this matter.

Financial Agreement Act Cwlth 29 The Royal Commission on the Constitution investigates various matters relating to the Constitution: powers of the Commonwealth working of the Constitution since Federation possible changes to the Constitution, and a number of specific matters including aviation, company law and health.

This leads me to my second point for the day. In proposing this approach Victoria had drawn on the experience of the National Competition Policy of the s.

The way that the GST is split between the States and Territories is quite complex and is done on a needs basis. As Australia entered the new century it had become clear that the economic challenge was also a social challenge, particularly in health, education and social welfare generally.

Legislative Change and Voluntary Cession Those instances of sub-constitutional change have all had a coercive character and thus represent classic instances of encroachment by the Commonwealth on the States.

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So while Australia may have started as a layer cake, over time we have become more like a marble cake hope you know your cakes! Sincethe net revenue of the GST, a national value-added tax, has been distributed as general purpose payments according to a strict levelling formula determined by the Grants Commission.

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Chronology of Australian federalism