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Federal Constitutional Power Over the Economy
Authors:Zines  Leslie
Abstract:This article examines the non-fiscal powers of the federal Parliamentof Australia to make laws to control the economy. Although thecommerce power in Australia was inspired by that in the U.S.Constitution, the High Court of Australia has not followed theliberal interpretation of the commerce power adopted by theU.S. Supreme Court since 1937. However, other express federalpowers, particularly those relating to corporations and externalaffairs, have been used for purposes that in the United Stateswould be encompassed by the commerce power. While the AustralianParliament does not have the degree of power possessed by Congress,the judicial trend is toward broader interpretations of federalpowers. Also discussed is Section 92 of the Australian Constitution,which declares that "trade, commerce and intercourse among theStates shall be absolutely free." This provision, which limitsboth federal and state power, was interpreted for many decadesas embodying the principle oflaissezfaire. In 1988 the HighCourt of Australia held that its scope is limited to prohibitinglaws that discriminate against interstate commerce with a protectionistpurpose or effect.
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