CHAPTER 9 Flashcards
What does section 52 do?
- Power over the commonwealth public service
- site of commonwealth seat of government (ACT)
What does section 115 do?
Prohibits states issuing own currency, coining and printing money
What does section 90 include?
Customs and excise taxes
What does section 51 include?
-Includes concurrent heads of power
Eg. s51(is) taxation
- includes some powers which are exclusive by nature
Eg. s51(vi): defence
What does s109 do?
S109 invalidates states laws that conflict within commonwealth laws, to the extent of inconsistency.
Define concurrent powers?
Powers granted by the Constitution to the Commonwealth and State Parliaments. They are shared powers. Predominantly in s52
Define residual powers?
All government powers not specified or enumerated in the constitution. They are exercised by the states. (s107)Eg. Transport.
, health
What is s51(ii)
Taxation power
- broad concurrent power
- states also can raise taxes under this power ( excluding Elise, customs and duties)
- income tax is controlled by commonwealth
What is s90
Customs, duties and excise powers
- charges on goods crossing a border, or taxes or applied goods
- exclusive to federal government
- multiple HC challenges over what taxes can be included Eg. Ha vs Hammond 1997
What is s96?
The grants power
- a mechanism to allow the commonwealth to transfer surplus revenue to the states
- the commonwealth may pass a law granting the states money
- untied grants: states can spend however it sees fit ( general purpose payments)
- tied grants : allow commonwealth attach conditions and dictate how they spend it.( specific purpose payments)
Define specific purpose payments?
Monetary grants that are given to States and Territories by the Commonwealth under section 96 which must be used on the terms and conditions laid down by the Commonwealth. Tied grants.
Eg.assets recycling scheme (ended in 2016) cmth encouraged states to sell state owned infrastructure and get money to use in and create new infrastructure.
Define general purpose payments?
Grants made from the Commonwealth to the States under s96 of the Constitution. No condition are attached and it is up to the states to sped as they think fit. Eg. GST
What is s87 do?
- ‘ the Braddon blot’
- another mechanism to transfer monies from commonwealth to states
- requires commonwealth to pay 75% of surplus from s90 revenue collected (excise)
- ten year time limit from federalism (is now a SPENT section)
What is s94 do?
- extensive residual powers require the states to be able to fund expensive public services ( roads, prisons, housing, police, transport etc.)
- s94 requires commonwealth to distribute its surplus revenue to the states in a manner ‘it deemed fair’
- parliament responded by putting money into trust funds to cover future spending which meant that there was no money left over for the states
- now a REDUNDANT section
Issue with tied grants?
- impacts state sovereignty
- allows federal government to interfere
What does s92 do?
- trade between states is to be ‘ absolutely free’
- guarantees that no state can make laws which give them a trade advantage or disadvantages trade with another state.
Define vertical fiscal imbalance?
- the imbalance in taxing powers and spending obligations between the two levels of government within a federation.
- in Australia the commonwealth collects more revenue than it needs and states much less than they need.
- the VFI forces states to accept grants, often tied grants to meet their spending obligations
What sections preserve state sovereignty?
- s107
- 108?
- s106?
Define financial powers?
The power to levy taxes and raise and spend money. These include the power to make conditional grants to the States (s96).
Define federalism?
Divided sovereignty in which power of the states is divided between one central government and two or more regional governments. Each sovereign within their own territories and over their own people