The Australian political system can only be understood in the context of its federal structure.
Hence, Federalism is the name given to the form of government that unites separate political entities/states within a single national system, but which allows each political entity/state to retain its independence. In Australia, this was achieved in 1901 through the creation of the Federal (also known as Commonwealth) Parliament and Government, with the six States giving up some of their powers, but remaining independent. Federalism In AustraliaFederalism can be seen in a number of ways:
In practice, there is much over-lap between the Federal and State governments. The history of the Australian federation is also largely the history of competition between these two levels of government. The Federal Government has become the dominant influence in the political system, because of its control of taxation collection. The States now depend to a large extent on the financial largesse of the Federal Government. The Federal Government now collects between 70-80% of all taxation revenue, but the expenditure of this money is divided more equally between the Federal and State governments. Hence, federal-state financial relations are a crucial aspect of the Australian political system. Throughout the 20th century, negotiations and haggling between the States and Canberra were a regular feature of the political climate, particularly at the annual Premiers’ Conferences where the dispersal of federal money was decided. The advent of the Goods and Services Tax in July 2000 ushered in a fundamental change in federal-state relations, the proceeds of the GST being reserved for the States. The old-style Premiers’ Conferences were discontinued. The Federal Government retained its dominant position, however, through its collection of personal income taxes. The hegemony of the Commonwealth Government has been assisted by a number of factors:
Advantages of Federalism
Disadvantages of Federalism
Recent IssuesAn understanding of federalism is the key to understanding the Australian political system. A number of issues demonstrate this:
|