The Use and Abuse of the Commonwealth Finance Power

Abstract

Upholding the Constitution is a fundamental tenet of the legislature, the executive and the judiciary. By its use of the appropriation and grants powers the federal Parliament has expanded its authority in its quest to gain absolute power over the States. As Lord Acton wrote in his famous letter:"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority: ... There is no worse heresy than that the office sanctifies the holder of it". 4 This paper examines some recent and pending Acts which seek to rely upon the appropriations power (s. 81 of the Constitution) for their validity. In doing so, it raises the vexed, but independent questions of standing and justiciability. The role of the Auditor-General, as a supposed watchdog, to warn both the Parliament and the people of abuses of financial power, is also considered. Finally, whether a successful challenge could be mounted to overrule the law on the use of the grants power is canvassed.