Spending

Question 1

What are the 3 types of Grants?

Answer 1

1. General revenue grants = compensate States for losing income tax
2. Special Assistance Grants = adjusting financial inequaity between States
3. Specific Purpose Grants = specific reason for why money can be used e.g. typically activities which fall outside head of power

Question 1

What is the key issue in Spending?

Answer 1

• Whether Commonwealth is allowed to provide financial assistance to pay states (s92)

Question 2

What is a case significant to the Spending and Taxing of States?

Answer 2

Unfirm Tax Cases –> 1942

Question 3

What is the First Issue in determining a Spending Questions?

Answer 3

• Is the law within the scope of s96?

Question 4

What is the Second Issue in determining the validity of a grant?

Answer 4

• Are there any limitations of the grant?

Question 5

At the end, what are we determining about the financial assistance provided by the Cth?

Answer 5

Whether it is VALID or INVALID

Question 6

What is a Limit to s96?

Answer 6

States MUST be constitutionally capable of fulfilling the conditions

Question 7

Can Grants be in conflict with any constitutional provisions?

Answer 7

Moran’s case –> s.51 prohibits the Commonwealth from discriminating b/w States and PART of states

Question 8

What section is Appropriation’s Power?

Answer 8

• S81

Question 9

What does s81 state?

Answer 9

• ALL money/revenues received by Executive Gov –> goes into ‘Consolidated Revenue Fund’ = bank which enables Federal Government to finance expenses

Question 10

What does s83 state?

Answer 10

Money can only be withdrawn under appropriation by law

Question 11

What does s81 and 83 aim to achieve?

Answer 11

• Ensure parliamentary control of ‘purse strings’ of government

Question 12

The power of expenditure is LIMITED, not conferred by s 81 or s83, instead…

Answer 12

Cth requires ANOTHER law relying on HOP that authorises spending

Question 13

First Issue for Appropriation?

Answer 13

Have the funds been VALIDLY appropriated

Question 14

Second Issue(s) for appropriation?

Answer 14

Does the Cth Executive have STATUTORY power to spend the funds?

AND

Does the Executive have power to spend UNDER s 61?