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Chronology of Australian federalism
3 May 2007
This Chronology is issued electronically. It will be kept
up-to-date online. The date of the latest update is noted clearly
above.
The Australian federal system, established in 1901, is one of
the oldest functioning federal systems in the world. It grew out of
a political culture in which separate colonies operated as
independent units and was an integral part of the Federation deal
between the colonies. However, in recent years the system has come
under increasing criticism as being outdated and indeed harmful to
Australia s future. This chronology traces the main points in our
federal system s story.
Contents
Introduction
Chronology of Australian
Federalism
Appendix 1:
Constitutional Provisions
Legislative powers of the
Parliament
Exclusive powers of the Parliament
Powers of the Houses in respect of
legislation
Consolidated Revenue Fund
Money to be appropriated by law
Transfer of property of State
Uniform duties of customs
Payment to States before uniform duties
Exclusive power over customs, excise and
bounties
Exceptions as to bounties
Trade within the Commonwealth to be free
Payment to States for five years after uniform
tariffs
Distribution of surplus
Financial assistance to States
Commonwealth not to give preference
Taking over of public debts of States
Agreements with respect to State debts
Inconsistency of laws
Taxation of property of Commonwealth or
State
Rights of residents in States
Appendix 2: Parliamentary
Library papers on Australian federalism
Introduction
The Australian federal union, which came into being in 1901, is
one of the oldest federations in the world. The establishment of
the Australian model was not a matter of chance, for the drafters
of Australia s Constitution were used to a governmental arrangement
in which the colonial parliaments were sovereign and held a great
deal of power. Those who attended the Federation Conventions of the
1890s were influenced by this, and they were determined to ensure
that their home colonies retained a governmental structure
possessing significant legislative powers.
The future of the Australian federal system is today a matter of
intense debate and speculation. The Parliamentary Library has
recently published a research paper which outlines the background
of the federal system and discusses its future. This chronology
aims to trace the history and development of the main aspects of
the Australian federal system and is intended to complement the
Library s research paper and to enable readers to understand why
the system looks and performs as it does today.
An appendix sets out the pertinent sections of the Australian
Constitution and provides a list of relevant papers published by
the Parliamentary Library.
Back to top
Chronology of Australian Federalism
Milestones
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Details
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Source
Documents
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1786 7
|
Captain Arthur Phillip receives commissions for the
establishment and the government of the colony of New South Wales.
The second commission (2 April 1787) confers on Phillip a similar
constitutional position to that held by governors in the American
colonies.
|
Historical Records
of Australia, series I, vol. 1 8
|
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1788
|
Formal proclamation of the colony of New South Wales (7
February).
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C. M. H. Clark, Select
Documents in Australian History 1799 1850, 46
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1825
|
Van Diemen s Land is separated from New South Wales by
proclamation.
|
Historical Records
of Australia, series III, vol. IV, 304 6
|
|
1829
|
Government is established in Western Australia.
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An Act to provide for the
government of Western Australia 1829 (UK)
|
|
1834
|
Government is established in South
Australia.
|
South Australian
Colonization Act 1834 (UK)
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1850
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Port Phillip district is separated from New South Wales.
|
Australian Constitutions
Act 1850 (UK)
|
|
1854
|
Responsible government is established in Tasmania.
|
Constitution Act
1854 (Tas)
|
|
1855
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Responsible government is established in New South Wales.
|
Constitution Act
1855 (NSW)
|
| |
Responsible government is established in Victoria.
|
Constitution Act
1855 (Vic)
|
|
1856
|
Responsible government is established in South Australia.
|
Constitution Act
1856 (SA)
|
|
1859
|
Queensland is separated from New South Wales; responsible
government is established.
|
Letters Patent erecting
Moreton Bay into a Colony, under the name of Queensland
1859
Order in Council
empowering the governor of Queensland to make laws, and to provide
for the Administration of Justice
|
|
1863
|
The Crown annexes to South Australia that part of New South
Wales that eventually is to become the Northern Territory.
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Letters Patent
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|
1863
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The first of many
19th Century inter-colonial conferences is held in
Melbourne in March April, and a number of common problems are
discussed, including tariffs, convict transportation, immigration
and communications. Queensland and Western Australia do not
attend.
|
Minutes of the
Inter-Colonial Conference, held in Melbourne in
the months of March and April 1863
|
|
1883
|
An intercolonial convention
held in Sydney proposes the establishment of a Federal Council of
Australasia with legislative authority over several matters
including:
- relations with Pacific islands
- prevention of the influx of criminals
- fisheries beyond territorial limits
- enforcement of court judgments beyond colonial boundaries
- enforcement of criminal process beyond colonial boundaries
- other matters including defence, quarantine, patents weights
and measures, recognition of marriage and divorce beyond colonial
boundaries.
|
Australasian Convention,
1883, Report of the proceedings November and December,
1883
|
|
1885
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The Federal Council of
Australasia is established. It is an intercolonial body with
limited legislative power which meets intermittently between 1886
and 1899; New South Wales never joins the Council.
|
Act to Constitute a Federal
Council of Australasia 1885 (UK)
Act to bring into
operation Act of Imperial Parliament 1885 (Vic)
Federal Council
(Adopting) Act 1885 (Qld)
Federal Council
(Adopting) Act 1885 (WA)
The (Tasmanian) Federal
Council Act 1885 (Tas)
Federal Council
Adopting Act 1888 (SA)
|
|
1890
|
Responsible government is established in Western Australia.
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Western Australia
Constitution Act 1890 (UK)
|
|
1890
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A Federation conference is held Melbourne.
|
Official Record of the
Proceedings and Debates of the Australasian Federation Conference
1890
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|
1891
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The National Australasian
Convention, Sydney, drafts a constitution, but this is not
ratified.
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Official Record of the
National Australasian Convention Debates 1891
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|
1897 8
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The Australasian Federal
Convention meets in Adelaide, Sydney and Melbourne, using the work
of the 1891 Convention in drafting an Australian Constitution.
|
Offical Record of the
Australasian Federal Convention Debates 1987, 1898
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|
1899
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The so-called Secret
Premiers Conference makes changes to the draft Constitution.
|
|
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1901
|
The Constitution of the Commonwealth of Australia which
established a federal structure of government takes effect when the
Commonwealth of Australia is inaugurated on 1 January.
Various parts of the Constitution indicate its federal
nature:
- section 51 specifies the powers of the Commonwealth, with the
residue remaining the responsibility of the States
- Chapter IV (sections 81 105) is designed to protect the
financial position of the States.
|
Commonwealth of Australia
Constitution Act 1900 (UK)
|
|
1903
|
The High Court of Australia is established in accordance with
Chapter III of the Constitution.
|
Judiciary Act 1903
(Cwlth)
|
|
1904
|
The federal system of
conciliation and arbitration is established, featuring the
Commonwealth Court of Conciliation and Arbitration.
|
Commonwealth
Conciliation and Arbitration Act 1904
|
|
1908
|
Legislation permits the Commonwealth to pay all surplus revenue
into trust accounts (initially to finance pensions), thus
undermining section 94 of the Constitution. This was upheld by the
High Court.
The legislation also terminates the reimbursement of the
majority of customs and excise duties to the States as provided for
under section 87 of the Constitution.
|
Surplus Revenue Act
1908 (Cwlth)
New South Wales v
Commonwealth (1908) 7 CLR 179
|
|
1910
|
A constitutional amendment
is carried giving the Commonwealth unrestricted power to take over
State debts.
|
Constitution Alteration
(State Debts) Act 1909 (Cwlth)
|
|
1910
|
The reimbursement of customs and excise revenues to the States,
as provided in section 87, of the Constitution is ended.
This is replaced by the first regularised scheme of Commonwealth
grants to states (25 shillings per capita).
|
Surplus Revenue Act
1910 (Cwlth)
|
|
1910
|
The imposition of land tax
is the first Commonwealth move to share an important State tax
base.
|
Land Tax Assessment Act
1910 (Cwlth)
|
|
1911
|
The Northern Territory is surrendered to the Commonwealth by
South Australia and becomes subject to Commonwealth governance.
|
Northern Territory
Surrender Act 1907 (SA)
Northern Territory
Acceptance Act 1910 (Cwlth)
Northern Territory
(Admin) Act 1910 (Cwlth)
|
|
1911
|
The Federal Capital Territory is separated from New South
Wales.
|
Seat of Government
Acceptance Act 1909 (Cwlth)
Seat of Government
(Admin) Act 1910 (Cwlth)
|
|
1913
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The Inter-State Commission,
as provided for in sections 101 and 103 of Constitution, is
established to regulate interstate commerce and trade and to
arbitrate in disputes between the states.
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Inter-State Commission
Act 1912(Cwlth)
|
|
1914
|
The Commonwealth begins to
levy estate duties.
|
Estate Duty
Assessment Act 1914 (Cwlth)
|
|
1915
|
The Commonwealth enters the
field of income taxation.
|
Income Tax Assessment
Act 1915 (Cwlth)
|
|
1915
|
High Court holds that the Inter-State Commission cannot be
constituted as a court and therefore cannot act as a court.
|
New South Wales
v Commonwealth(1915) 20 CLR 54
|
|
1920
|
The High Court overturns
the principles underpinning early High Court cases dealing with
intergovernmental relations, wherein the Court had attempted to
preserve the clear distinction between Commonwealth and State
powers. The Court now holds that the Commonwealth is entitled to
exercise its legislative power to the fullest extent necessary,
thus expanding the potential reach of its power irrespective of the
existence of State powers.
|
Amalgamated Society of
Engineers v Adelaide Steamship Co Ltd (1920) 28 CLR 129 (the
Engineers Case)
|
|
1920
|
The Inter-State Commission
is allowed to lapse by a failure by government to replace retiring
members.
|
|
|
1923
|
The Commonwealth uses
section 96 of the Constitution to make the first specific purpose
grants to the States. These are for the building of roads.
|
Main Roads Development
Act 1923 (Cwlth)
|
|
1926
|
The High Court confirms
that specific purpose payments from the Commonwealth to the States
can be directed to areas of government responsibility that are not
included in formal Commonwealth responsibilities.
|
Victoria v
Commonwealth (1926) 38 CLP 399 (Roads Case)
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1927
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The Financial Agreement
between the Commonwealth and the States establishes the Loan
Council, designed to bring governmental borrowing under central
control.
A new arrangement for
grants to the States is put in place with debt assistance payments
replacing the per capita grants.
|
Financial Agreement Act 1928 (Cwlth)
|
|
1927 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.
The Royal Commission recommends an increase in Commonwealth
powers.
|
Report of the Royal
Commission on the Constitution, 1929
|
|
1928
|
A constitutional amendment
is carried giving constitutional validity to the Loan Council.
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Constitution Alteration
(State Debts) Act 1928 (Cwlth)
|
|
1932
|
NSW Premier Lang is
dismissed by the Governor on the grounds he broke Commonwealth law
in ignoring Commonwealth Proclamation No. 42 of 1932, which
specified that NSW public servants were to pay State revenue from
certain taxes to the Commonwealth rather than the State.
|
Governor Game to Lang, 13
May 1932 in B. Foott, Dismissal of a Premier, 210
|
|
1933
|
The Commonwealth Grants
Commission is established to advise the Commonwealth Government on
state applications for special financial assistance.
|
Commonwealth Grants
Commission Act 1933 (Cwlth)
|
|
1934
|
A conference of
Commonwealth and state ministers meets at Melbourne to discuss
aspects of the federal system.
|
Conference of
Commonwealth and State Ministers on Constitutional Matters
1934
|
|
1942
|
A convention of
Commonwealth and state representatives discusses the question of
giving the Commonwealth Parliament extra powers in relation to the
matter of post-war reconstruction.
|
Convention of
Representatives of the Commonwealth and State Parliaments on
Proposed Alteration of the Commonwealth Constitution. Record of
Proceedings.
|
|
1942
|
Commonwealth legislation
establishes the Commonwealth's effective monopoly over income
taxation. This is confirmed in the First Uniform Tax Case. The
Commonwealth reimburses the States through annual tax reimbursement
grants.
|
Income Tax (Wartime
Arrangements Act 1942 (Cwlth)
Income Tax Assessment
Act 1942 (Cwlth)
States Grants (Income
Tax Reimbursement) Act 1942 (Cwlth)
|
|
1942
|
The High Court says that
the uniform taxation legislation is a valid use of Commonwealth
power.
|
South Australia
v Commonwealth (1942) 65 CLR 373 (First Uniform Tax
Case)
|
|
1945
|
The Commonwealth
establishes the Universities Commission and Commonwealth Office of
Education, the latter to advise the Minister concerning the grant
of financial assistance to the States and to other authorities for
educational purposes .
|
Education Act 1945
(Cwlth)
|
|
1946
|
The Commonwealth legislates
for uniform income tax arrangements to continue indefinitely.
|
Income Tax (War-time
Arrangements) Act 1946
|
|
1946
|
A constitutional amendment
is carried giving the Commonwealth power to make special laws with
respect to certain social services.
|
Constitution Alteration
(Social Services) Act 1946 (Cwlth)
|
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1957
|
The Commonwealth monopoly over income taxation remains in place,
despite a second State challenge.
|
Victoria v
Commonwealth (1957) 99 CLR 575 (Second Uniform Tax Case)
|
|
1959
|
The Commonwealth replaces tax reimbursement grants to the States
with financial assistance grants.
|
|
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1967
|
A constitutional amendment
is carried giving the Commonwealth power to make special laws with
respect to Aborigines living in the States and to include
indigenous peoples in the national census.
|
Constitution Alteration
(Aboriginals) Act 1967 (Cwlth)
|
|
1968
|
Limits are placed upon the matters which can be appealed from
the High Court to the Privy Council, and appeals to the Privy
Council from other federal courts and territory supreme courts are
abolished.
|
Privy Council
(Limitation of Appeals) Act 1968 (Cwlth)
|
|
1971
|
As a consequence of a High
Court decision, the Commonwealth gains power to control a
substantial part of internal Australian trade when conducted by
corporations.
|
Strickland v Rocla Concrete Pipes Ltd (1971) 124 CLR
468
|
|
1973
|
Victoria calls upon other
governments to join in a constitutional convention to consider
problems of Australian federalism.
Australian Constitutional
Convention, Sydney session.
|
Proceedings of the Australian Constitutional Convention
1973
|
|
1974 75
|
The first payment is made
of Commonwealth general revenue assistance to local government.
|
Grants Commission Act 1973 (Cwlth)
|
|
1975
|
The High Court confirms
that sovereign rights over territorial seas and the continental
shelf are vested in the Commonwealth.
|
New South Wales v Commonwealth (1975) 135 CLR
337
|
|
1975
|
Australian Constitutional Convention, Melbourne session.
|
Proceedings of the
Australian Constitutional Convention 1975
|
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1975
|
Legislation is passed for
the re-creation of the Inter-State Commission.
|
Inter-State Commission
Act 1975 (Cwlth)
|
|
1976
|
The Commonwealth replaces
general revenue grants to the States and local government with
personal income tax sharing grants.
|
States (Personal Income
Tax Sharing) Act 1976 (Cwlth)
Local Government
(Personal Income Tax Sharing) Act 1976 (Cwlth)
|
|
1976
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Australian Constitutional Convention, Hobart session.
|
Proceedings of the
Australian Constitutional Convention 1976
|
|
1976
|
The Advisory Council on
Inter-Government Relations is established with aim of improving
co-ordination between the Commonwealth, State and local
governments. It is located in Hobart.
|
Debates,
H of R, 23 Sept 1976
|
|
1977
|
Australian Capital
Territory and Northern Territory residents gain the right to vote
in constitutional referenda.
|
Constitution Alteration
(Referendums) 1977
|
|
1978
|
The Commonwealth legislates for a limited re-entry by the States
into the field of income taxation. No State moves to do so.
|
Income Tax
(Arrangements with the States) Act 1978 (Cwlth)
|
|
1978
|
Self-government is established in the Northern Territory.
|
Northern Territory
(Self-Government) Act 1978 (Cwlth)
|
|
1983
|
The High Court states that, subject to constitutional
limitations, the external affairs power in the Constitution gives
the Commonwealth power to legislate on a matter of international
concern whether or not Australia is a party to a treaty on that
matter.
|
Commonwealth v
Tasmania (1983) 158 CLR 1 (Tasmanian Dam Case)
|
|
1983
|
Australian Constitutional Convention, Adelaide session.
|
Proceedings of the
Australian Constitutional Convention 1983
|
|
1983
|
The Inter-State Commission is re-established.
|
Inter-State Commission
Amendment Act 1983 (Cwlth)
|
|
1985
|
Australian Constitutional Convention, Brisbane session.
|
Proceedings of the
Australian Constitutional Convention 1985
|
|
1986
|
A major step in Australia s attaining independence from the
United Kingdom is taken:
- the Australian States and the Commonwealth confirm their
sovereign, independent status from Britain
- Britain can no longer legislate for any part of Australia
- all Privy Council appeals from Australian courts other than the
High Court are ended, although it remains theoretically possible
for some appeals to be taken under s.74 of the Constitution
- State governors are not representatives of the British
Government, and
- States can now legislate to repeal or amend any UK legislation
extending to them.
|
Australia Act
1986 (Cwlth), Australia Act 1986 (UK)
|
|
1986
|
The Advisory Council on
Inter-Government Relations is abolished.
|
|
|
1985-88
|
A Constitutional Commission inquires into and reports on the
possible revision of the Australian Constitution.
|
Final Report of the
Constitutional Commission 1988
|
|
1988
|
Self-government is
established in the Australian Capital Territory.
|
Australian Capital
Territory (Self-Government) Act 1988 (Cwlth)
|
|
1989
|
The Inter-State Commission is abolished for the second time.
|
|
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1992
|
The Council of Australian Governments is established as the peak
inter-governmental forum.
|
|
|
1997
|
State excise/franchise tax regimes are struck down.
|
Ha v New South
Wales (1997) 189 CLR 465
|
|
1998
|
A Northern Territory Statehood referendum is held but statehood
is rejected by voters.
|
Referendums Act 1998 (NT)
|
|
1999 2000
|
A goods and services tax is introduced.
|
A New Tax System
(Goods and Services Tax) 1999 (Cwlth)
|
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1999 2000
|
From 1 July 2000, the
Commonwealth provides to the States revenue from the goods and
services tax under the Intergovernmental Agreement on the
Reform of Commonwealth State Financial Relations, replacing
financial assistance grants and other general purpose grants.
|
A New Tax System
(Commonwealth State Financial Arrangements) Act 1999
(Cwlth)
|
|
2006
|
The High Court gives broad
construction to Commonwealth corporations power, a decision with
implications for many areas of government. This is seen as creating
an opportunity for reform of Australia s federal system of
government.
|
New South Wales v
Commonwealth of Australia; Western Australia v Commonwealth of
Australia [2006] HCA 52
|
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There are a number of sections of the Constitution which have
had an important bearing on the moulding of current Federal-State
relations, especially financial relations. These include:
51. The Parliament shall, subject to this
Constitution, have power to make laws for the peace, order and good
government of the Commonwealth with respect to:
(i) trade and commerce with other countries and
among the States.
(ii) taxation; but so as not to discriminate
between States or parts of States.
(iii) bounties on the production or export of
goods, but so that such bounties shall be uniform throughout the
Commonwealth.
(iv) borrowing money on the public credit of the
Commonwealth.
(xx) foreign corporations, and trading or
financial corporations formed within the limits of the
Commonwealth.
(xxiiiA) the provision of maternity allowances,
widows' pensions, child endowment, unemployment, pharmaceutical,
sickness and hospital benefits, medical and dental services (but
not so as to authorise any form of civil conscription), benefits to
students and family allowances.
(xxix) external affairs.
(xxxi) the acquisition of property on just terms
from any State or person for any purpose in respect of which the
Parliament has power to make laws.
(xxxvii) matters referred to the Parliament of the
Commonwealth by the Parliament or Parliaments of any State or
States, but so that the law shall extend only to States by whose
Parliaments the matter is referred, or which afterwards adopt the
law.
52. The Parliament shall, subject to this
Constitution, have exclusive power to make laws for the peace,
order and good government of the Commonwealth with respect to:
(i) the seat of government of the Commonwealth,
and all places acquired by the Commonwealth for public
purposes.
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53. Proposed laws appropriating revenue or
moneys, or imposing taxation, shall not originate in the
Senate...
The Senate may not amend proposed laws imposing taxation, or
proposed laws appropriating revenue or moneys for the ordinary
annual services of the Government.
The Senate may not amend any proposed law so as to increase any
proposed charge or burden on the people...
81. All revenues or moneys raised or received
by the Executive Government of the Commonwealth shall form one
Consolidated Revenue Fund, to be appropriated for the purposes of
the Commonwealth in the manner and subject to the charges and
liabilities imposed by this Constitution.
83. No money shall be drawn from the Treasury
of the Commonwealth except under appropriation made by law.
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86. On the establishment of the Commonwealth,
the collection and control of duties of customs and of excise, and
the control of the payment of bounties, shall pass to the Executive
government of the Commonwealth.
87. During a period of ten years after the
establishment of the Commonwealth and thereafter until the
Commonwealth otherwise provides, of the net revenue of the
Commonwealth from duties of customs and excise not more than
one-fourth shall be applied annually by the Commonwealth towards
its expenditure.
The balance shall, in accordance with this Constitution, be paid
to the several States, or applied towards the payment of interest
on debts of the several States taken over by the Commonwealth.
88. Uniform duties of customs shall be imposed
within two years after the esta
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89. Until the imposition of uniform duties of
customs:
(i) The Commonwealth shall credit to each State
the revenues collected therein by the Commonwealth.
(ii) The Commonwealth shall debit to each
State-
(a) the expenditure therein of the Commonwealth
incurred solely for the maintenance or continuance, as at the time
of transfer, of any department transferred from the State to the
Commonwealth.
(b) the proportion of the State, according to the
number of its people, in the other expenditure of the
Commonwealth.
(iii) The Commonwealth shall pay to each State
month by month the balance (if any) in favour of the State.
90. On the imposition of uniform duties of
customs the power of the Parliament to impose duties of customs and
excise, and to grant bounties on the production or export of goods,
shall become exclusive.
On the imposition of uniform duties of customs all laws of the
several States imposing duties of customs or excise, or offering
bounties on the production or export of goods, shall cease to have
effect, but any grant of or agreement for any such bounty lawfully
made by or under the authority of the Government of any State shall
be taken to be good if made before the thirtieth day of June, one
thousand eight hundred and ninety eight, and not otherwise.
91. Nothing in this Constitution prohibits a
State from granting any aid to or bounty on mining for gold,
silver, or other metals, nor from granting, with the consent of
both Houses of the Parliament of the Commonwealth expressed by
resolution, any aid to or bounty on the production or export of
goods.
92. On the imposition of uniform duties of
customs, trade, commerce, and intercourse among the States, whether
by means of internal carriage or ocean navigation, shall be
absolutely free.
But notwithstanding anything in this Constitution, goods
imported before the imposition of uniform duties of customs into
any State, or into any colony which, whilst the goods remain
therein, becomes a State, shall, on thence passing into another
State within two years after the imposition of such duties, be
liable to any duty chargeable on the importation of such goods into
the Commonwealth, less any duty paid in respect of the goods on
their importation.
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93. During the first five years after the
imposition of uniform duties of customs, and thereafter until the
Parliament otherwise provides:
(i) the duties of customs chargeable on goods
imported into a State and afterwards passing into another State for
consumption, and the duties of excise paid on goods produced or
manufactured in a State and afterwards passing into another State
for consumption, shall be taken to have been collected not in the
former but in the latter State.
(ii) subject to the last subsection, the
Commonwealth shall credit revenue, debit expenditure, and pay
balances to the several States as prescribed for the period
preceding the imposition of uniform duties of customs.
94. After five years from the imposition of
uniform duties of customs, the Parliament may provide, on such
basis as it deems fair, for the monthly payment to the several
States of all the surplus revenue of the Commonwealth.
96. During a period of ten years after the
establishment of the Commonwealth and thereafter until the
Parliament otherwise provides, the Parliament may grant financial
assistance to any State on such terms and conditions as the
Parliament thinks fit.
99. The Commonwealth shall not, by any law or
regulation of trade, commerce, or revenue, give preference to one
State or any part thereof over another State or any part
thereof.
105. The Parliament may take over from the
States their public debts as existing at the establishment of
the Commonwealth*, or a proportion thereof according to the
respective numbers of their people as shown by the latest
statistics of the Commonwealth, and may convert, renew, or
consolidate such debts, or any part thereof; and the States shall
indemnify the Commonwealth in respect of the debts taken over, and
thereafter the interest payable in respect of the debts shall be
deducted and retained from the portions of the surplus revenue of
the Commonwealth payable to the several States, or if such surplus
is insufficient, or if there is no surplus, then the deficiency or
the whole amount shall be paid by the several States.
[* deleted by referendum in 1910].
105A. (1) The Commonwealth may make agreements
with the States with respect to the public debts of the States,
including:
(a) the taking over of such debts by the
Commonwealth.
(b) the management of such debts.
(c) the payment of interest and the provision and
management of sinking funds in respect of such debts.
(d) the consolidation, renewal, conversion, and
redemption of such debts.
(e) the indemnification of the Commonwealth by the
States in respect of debts taken over by the Commonwealth.
(f) the borrowing of money by the States or by the
Commonwealth, or by the Commonwealth for the States.
(2) The Parliament may make laws for validating any such
agreement made before the commencement of this section.
(3) The Parliament may make laws for the carrying out by the
parties thereto of any such agreement.
(4) Any such agreement may be varied or rescinded by the parties
thereto.
(5) Every such agreement and any such variation thereof shall be
binding upon the Commonwealth and the States parties thereto
notwithstanding anything contained in this Constitution or the
Constitution of the several States or in any law of the Parliament
of the Commonwealth or of any State.
(6) The powers conferred by this section shall not be construed
as being limited in any way by the provisions of section one
hundred and five of this Constitution.
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109. When a law of a State is inconsistent with
a law of the Commonwealth, the latter shall prevail, and the former
shall, to the extent of inconsistency, be invalid.
114. A State shall not, without the consent of
the Parliament of the Commonwealth, impose any tax on property of
any kind belonging to the Commonwealth, nor shall the Commonwealth
impose any tax on property of any kind belonging to a State.
117. A subject of the Queen, resident in any
State, shall not be subject in any other State to any disability or
discrimination which would not be equally applicable to him if he
were a subject of the Queen resident in such other State.
Appendix 2: Parliamentary
Library papers on Australian
federalism
Scott Bennett, The politics of constitutional
amendment , Research Paper, no. 11, 2002 03, http://www.aph.gov.au/library/pubs/rp/2002-03/03RP11.htm
Scott Bennett, The politics of the Australian federal system ,
Research Brief, no. 4, 2006 07, http://www.aph.gov.au/library/pubs/rb/2006-07/07rb04.pdf
Luke Buckmaster and Angela Pratt, Not on my
account! Cost-shifting in the Australian health system ,
Research Note, no. 6, 2005 06, http://www.aph.gov.au/library/pubs/rn/2005-06/06rn06.htm
Brian Galligan, Parliament s Development of
Federalism , Research Paper, no. 26, 2000 01, http://www.aph.gov.au/library/pubs/rp/2000-01/01RP26.htm
John Gardiner-Garden, Commonwealth expenditure
on Indigenous affairs 1968 2004 , Research Note, no. 18,
2004 05, http://www.aph.gov.au/library/pubs/rn/2004-05/05rn18.htm,
Marilyn Harrington, Commonwealth funding for
schools since 1996: an update , Research Note, no. 41,
2003 04, http://www.aph.gov.au/library/pubs/rn/2003-04/04rn41.htm
Denis James, Federal-state financial relations:
the Deakin prophecy , Research Paper, no. 17, 1999 2000,
http://www.aph.gov.au/library/pubs/rp/1999-2000/2000rp17.htm
Greg McIntosh, Caring for the kids. Commonwealth
funding for child care , Research Note, no. 18, 2003 04,
http://www.aph.gov.au/library/pubs/rn/2003-04/04rn18.htm
Greg McIntosh, The changing face of public
housing , Research Note, no. 24, 1999 2000, http://www.aph.gov.au/library/pubs/rn/1999-2000/2000rn24.htm
Greg McIntosh, Child care support what do
families get? , Research Note, no. 11, 2006 07, http://www.aph.gov.au/library/pubs/rn/2006-07/07rn11.pdf
.
Greg McIntosh and Janet Phillips, The
Commonwealth-state Housing Agreement , E-Brief, 2001,
http://www.aph.gov.au/library/intguide/sp/statehouseagree.htm
Peter Prince and Thomas John, The Constitution
and industrial relations: is a unitary system achievable? ,
Research Brief, no. 8, 2005 06, http://www.aph.gov.au/library/pubs/rb/2005-06/06rb08.pdf
Saunders, Cheryl, The Parliament as partner: A
century of Constitutional review , Research Paper, no. 3,
2000 01, http://www.aph.gov.au/library/pubs/rp/2000-01/01RP03.htm
Ann Twomey, Federal Parliament s changing role
in treaty making and external affairs , Research Note, no.
15, 1999 2000, http://www.aph.gov.au/library/pubs/rp/1999-2000/2000rp15.htm
Richard Webb, Commonwealth general purpose
financial assistance to local government , Research Paper,
no.1, 2003-04, http://www.aph.gov.au/library/pubs/rp/2003-04/04RP01.htm
Richard Webb, The Commonwealth Government s role
in infrastructure provision , Research Paper, no. 8, 2003
04, http://www.aph.gov.au/library/pubs/rp/2003-04/04rp08.htm
Richard Webb, Commonwealth road funding since
1990 , (updated 1 March 2004), Research Paper, no. 7, 2003
04, http://www.aph.gov.au/library/pubs/rp/2003-04/04rp07.htm
Richard Webb, Developments in Commonwealth-state
financial relations since 2000-01 , Research Brief, no.
11, 2005 06, http://www.aph.gov.au/library/pubs/rb/2005-06/06rb11.htm
Richard Webb, Horizontal fiscal equalisation , Research
Note, no. 1, 2002 03, http://www.aph.gov.au/Library/pubs/rn/2002-03/03rn01.htm
Richard Webb, Public finance and vertical fiscal imbalance ,
Research Note, no. 13, 2002 03, http://www.aph.gov.au/Library/pubs/SearchResults.asp
Richard Webb, The Australian loan Council ,
Research Note, no. 43, 2001 02, http://www.aph.gov.au/library/pubs/rn/2001-02/02rn43.pdf
For copyright reasons some linked items are only
available to members of Parliament.
Chronologies are written for members of Parliament,
being located on the Internet they can be read by members of the
public, however some linked items are available to members of
Parliament only, due to copyright reasons.
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Comments to: web.library@aph.gov.au
Last reviewed 14 June, 2007
by the Parliamentary Library Web Manager
Commonwealth of Australia
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