The commonwealth and the states

federalism

a system of gov’t in which law making power is divided sovereignty between one national government and two or more regional governments. depends on two levels of government each sovereign within its sphere of power. requires a constitution to divide and allocate sovereignty (exclusive, concurrent, residual powers)

Division of powers

exclusive, residual and concurrent

Commonwealth

all commonwealth powers are specified and enumerated in the constitution and the commonwealth has no power beyond those written in the constitution. includes exclusive powers which relate strictly to matters of national character e.g. section 52 power over the APS, power to collect excise, bounties, duties tax. states are excluded from making laws on exclusive powers.

concurrent powers

constitution specified and enumerates powers of the commonwealth but doesn’t restrict the states from making laws about them, so these powers can be exercised by both e.g. taxation. some concurrent powers are national in character and “exclusive-by-their-nature” so only the commonwealth makes laws about them (e.g. defense, immigration, nationality). section 109 resolves conflicting laws by invalidating state law to the extent of the inconsistency

State powers

chapter 5 of the constitution saved constitutions and lawmaking powers. state powers include concurrent powers that aren’t exclusive by nature e.g. taxation AND residual powers (powers which aren’t specified in the constitution so they’re automatically a state power and powers about matters that are regional in character e.g. land management, local government)

Separation of powers

Nationally- a GG, a commonwealth parliament , federal executive, federal courts. Regionally- 6 governors, state parliaments, executive gov’t, courts.

Federal bodies

bodies through which two levels of gov’t cooperate to reduce duplication and inefficiency.

Examples of federal bodies

National Federal Reform Council (Prime, state, territory ministers + president of Aus local gov’t association; meets to set national priorities for cooperative federalism, replaced the council of Australian Governments during the pandemic). National Cabinet (streamlined and more frequent meetings of the heads of Australian governments to respond to high priority issues of national significance). High court (interprets the constitutional division of power, adjudicates disputes between Australian governments)

Federal balance of power

balance of power occurs between two levels of government because federalism divides power between them. coercive federalism- national gov’t is more powerful. cooperative federalism- both are equal. confederation- regional gov’t is more powerful.

Factors influencing federal balance of power

high court interprets exclusive and concurrent powers, constitutional referendums change power of a level of gov’t states voluntarily transfer powers to the commonwealth, vertical fiscal imbalance

Vertical fiscal imbalance

extreme financial inequality because the commonwealth collects more taxes and spends less money. the VFI is an extreme source of financial power which the commonwealth uses to coerce states.

Australian type of federalism

fiscal federalism (a form of coercive federalism) because of the significant influence of the fiscal imbalance.

Geography of federalism (federal, regional, territorial)

Canberra is the national capital, holds three branches of gov’t (Commonwealth parliament, federal executive, high court) and GG residence, headquarters of major depts of APS in the Parliamentary Triangle. Regional governments (state parliaments, executives, supreme courts, governors) are in state capitals. Territories are legally different- they mirror states’ political and legal systems but lack sovereignty and only exercise powers delegated by the commonwealth instead of constitution.

Pros of federation

Regional governments are closer to the people, By dividing power, political freedoms are enhanced, Competition between regions are good

Cons of federation

Over government, Leads to conflicts, Divided power can lead to reduction in nation’s ability to make decisions on national issues, e.g. environment, COVID