Economics week 5 package
1. Complete a short summary on the structure of government in Australia. Note the
making of an Act of federal parliament.
The division of power under the Australia Constitution outlines the division of powers between
the federal government, the states and local governments. The Commonwealth Government
consists of the House of Representatives and the Senate. There are six state governments and
two territory governments, and more than six hundred local government areas. Furthermore, the
separation of powers is the division of Australian government institutions and power into
executive, legislative and judiciary branches to avoid a totalitarian oppressive system.
Each state possesses its own constitution and is subject to the Australian Constitution. The
Governor General is the Queen’s representative in Australia, who is the Head of State.
The political party with the majority of seats in the House of Representatives forms the
federal government.
The members of the federal government elect a Prime Minister.
Ministers are appointed by the Prime Minister to form a Cabinet, which formulates and
implements government policy through legislation in the federal parliament.
The procedure of making an Act of Parliament:
- Proposal: an Act of Parliament is proposed by a democratically elected government,
which wants to implement policy.
- Draft bill: submitted to the Prime Minister and Cabinet, and it approved, is drafted by the
relevant government department and timetabled for introduction into parliament.
- House of representatives: most bills introduced here.
o First reading: bill introduced to the house.
o Second reading: Minister responsible gives speech outlining its purpose. Debate
occours.
o Committee stage: bill considered clause by clause and amended.
o Third reading: bill agreed to and passed by the House through a majority vote.
- Senate:
o Bill must pass both houses to become statute or law.
o Minister of the government in the Senate is responsible for bill.
o First reading: bill read to Senators.
o Second reading: debate over purpose and provision of the bill.
o Consideration by a Standing Committee: referred to them for detailed
examination.
o Committee stage: considered clause by clause by all senators.
o Amendments made arising from debate or recommendation from Standing
Committee.
o Third reading: bill formally agreed on by majority vote.
- Royal assent and publication:
, o Governor General signs the bill, which becomes an Act of Parliament.
o Publication in the Commonwealth of Australia Gazette.
o Act comes into operation on day of Assent, or within 28 days of Assent or when
agreed.
2. In what ways is the Australian economy a mixed economy?
Australia is a mixed market economy since the government intervenes to modify the operation
of the free market or price mechanism. The private sector is still responsible for the majority of
economic decision making, but the government intervenes to redistribute income, control
negative externalities, promote competition, provide collective goods and services and to
conduct counter cyclical policies to prevent extreme effects of the business cycle. Additionally,
the economy operates more as a free market during periods of economic wellbeing, but
government intervenes more during time of recession.
3. Copy table 12.4 and comment on exclusive, concurrent and residual powers.
Level of Government Expenditure Revenue
Local Government (Residual Local infrastructure Grants
powers delegated by the Sport, recreation Rates
states to make laws over Regulation and licencing Fines, fees, charges
local responsibilities) Welfare services
State Government Education Grands, taxes, GST, income
(concurrent and residual Health from PTEs, fines, fees,
powers to make laws Community services revenue from privatisation
affecting the state) Public transport and PTEs.
Roads, housing
Cultural facilities
Federal Government Defence Income tax, PAYG, GST,
(Exclusive powers to make Foreign affairs Company tax, customs
laws affecting nation and Social security duties, fringe benefits tax,
concurrent powers shared Health capital gains tax, other
with states). Education, Culture income and other tax.
Economy
Exclusive powers: only exercised by the federal government, include power to make laws
over national matters such as defence, external affairs, immigration, customs, currency.
Concurrent powers: shared by state and federal government, including trade, commerce,
taxation. In some areas, federal government plays major role (social security), and states
dominate in areas such as education, transport.
Residual powers: those exercised by state government and include public order and
safety. Some also are delegated to local governments.
4. Very briefly summarise the ‘size of the public sector’ including key statistics re
employment, consumption, expenditure, government debt etc.
1. Complete a short summary on the structure of government in Australia. Note the
making of an Act of federal parliament.
The division of power under the Australia Constitution outlines the division of powers between
the federal government, the states and local governments. The Commonwealth Government
consists of the House of Representatives and the Senate. There are six state governments and
two territory governments, and more than six hundred local government areas. Furthermore, the
separation of powers is the division of Australian government institutions and power into
executive, legislative and judiciary branches to avoid a totalitarian oppressive system.
Each state possesses its own constitution and is subject to the Australian Constitution. The
Governor General is the Queen’s representative in Australia, who is the Head of State.
The political party with the majority of seats in the House of Representatives forms the
federal government.
The members of the federal government elect a Prime Minister.
Ministers are appointed by the Prime Minister to form a Cabinet, which formulates and
implements government policy through legislation in the federal parliament.
The procedure of making an Act of Parliament:
- Proposal: an Act of Parliament is proposed by a democratically elected government,
which wants to implement policy.
- Draft bill: submitted to the Prime Minister and Cabinet, and it approved, is drafted by the
relevant government department and timetabled for introduction into parliament.
- House of representatives: most bills introduced here.
o First reading: bill introduced to the house.
o Second reading: Minister responsible gives speech outlining its purpose. Debate
occours.
o Committee stage: bill considered clause by clause and amended.
o Third reading: bill agreed to and passed by the House through a majority vote.
- Senate:
o Bill must pass both houses to become statute or law.
o Minister of the government in the Senate is responsible for bill.
o First reading: bill read to Senators.
o Second reading: debate over purpose and provision of the bill.
o Consideration by a Standing Committee: referred to them for detailed
examination.
o Committee stage: considered clause by clause by all senators.
o Amendments made arising from debate or recommendation from Standing
Committee.
o Third reading: bill formally agreed on by majority vote.
- Royal assent and publication:
, o Governor General signs the bill, which becomes an Act of Parliament.
o Publication in the Commonwealth of Australia Gazette.
o Act comes into operation on day of Assent, or within 28 days of Assent or when
agreed.
2. In what ways is the Australian economy a mixed economy?
Australia is a mixed market economy since the government intervenes to modify the operation
of the free market or price mechanism. The private sector is still responsible for the majority of
economic decision making, but the government intervenes to redistribute income, control
negative externalities, promote competition, provide collective goods and services and to
conduct counter cyclical policies to prevent extreme effects of the business cycle. Additionally,
the economy operates more as a free market during periods of economic wellbeing, but
government intervenes more during time of recession.
3. Copy table 12.4 and comment on exclusive, concurrent and residual powers.
Level of Government Expenditure Revenue
Local Government (Residual Local infrastructure Grants
powers delegated by the Sport, recreation Rates
states to make laws over Regulation and licencing Fines, fees, charges
local responsibilities) Welfare services
State Government Education Grands, taxes, GST, income
(concurrent and residual Health from PTEs, fines, fees,
powers to make laws Community services revenue from privatisation
affecting the state) Public transport and PTEs.
Roads, housing
Cultural facilities
Federal Government Defence Income tax, PAYG, GST,
(Exclusive powers to make Foreign affairs Company tax, customs
laws affecting nation and Social security duties, fringe benefits tax,
concurrent powers shared Health capital gains tax, other
with states). Education, Culture income and other tax.
Economy
Exclusive powers: only exercised by the federal government, include power to make laws
over national matters such as defence, external affairs, immigration, customs, currency.
Concurrent powers: shared by state and federal government, including trade, commerce,
taxation. In some areas, federal government plays major role (social security), and states
dominate in areas such as education, transport.
Residual powers: those exercised by state government and include public order and
safety. Some also are delegated to local governments.
4. Very briefly summarise the ‘size of the public sector’ including key statistics re
employment, consumption, expenditure, government debt etc.
