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WI THOUT PREJ UDI CE
Mr Daniel Andrews 4-5-2014
daniel.andrews@parliament.vic.gov.au
5
Cc Mt Tony Abbott
Tony.Abbott.MP@aph.gov.au

Premier D. Napthine
denis.napthine@parliament.vic.gov.au 10

20140504-G. H. Schorel-Hlavka O.W.B. to Mr Daniel Andrews - cc-Mr Tony Abbott

Daniel,
I understand that you propose to have municipal/shire council rates to be limited to CPI 15
increases unless the Minister decides otherwise.
As a CONSTITUTIONALIST I have in the past written to premier D. Napthine and Mr Tony
Abbott PM about this issue.
As you may be aware the Federal Government in 2009 made pensions and other welfare
payments to be increased with the CPI. Previously, when standing as an INDEPENDENT 20
candidate in elections I promoted that because the Commonwealth had tied pensions and welfare
payments to the CPI then council rates must likewise be kept within this as otherwise it
conflicted with Commonwealth law.

25
http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pu
bs/rp/BudgetReview200910/WelfarePensionReforms




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QUOTE
Welfare payments Reforms to pensions

Budget Review 2009-10 Index 5
Budget 2009 10: Welfare payments
Reforms to pensions
Peter Yeend
The Government presented several substantive reforms to the provision of income support to the retired aged
(the age pension) and most other pension payment recipients in the 200910 Budget under the heading of 10
Secure and Sustainable Pensions.[1] These proposed measures are:
a one-off increase in the single rate of pension of $30 a week. The increase will apply to the Age
Pension, Disability Support Pension, Service Pension, Carer Payment, Wife Pension, Widow B Pension and Income
Support Supplement. The increase is not to be provided to Parenting Payment Single (PPS) recipients
a new Pension Supplement which replaces the current Utilities Allowance,[2] Pharmaceutical 15
Allowance,[3] Telephone Allowance[4] and the Goods and Services Tax (GST) pension supplement.[5] The Pension
Supplement is to also be paid to recipients of Widow Allowance, Partner Allowance and other income support
payment recipients over Age Pension age
an increase in the pension income test taper rate, for income in excess of the income test free area,
from 40 cents in the dollar to 50 cents in the dollar 20
a new income test treatment of earned income from employment. Only half of the first $500 of
fortnightly employment income will be included in the income test. Pensioners can get a maximum benefit of
$125 per fortnight under this Work Bonus
the closure of the Pension Bonus Scheme
the upgrading of the indexation requirements for the pension from the current 25 per cent of Male Total 25
Average Weekly Earnings (MTAWE) to 27.7 per cent of MTAWE
an increase in the qualification age for the Age Pension from age 65 to age 67 to be phased in from
2017 to 2023
revised pension lump-sum advance payment arrangements allowing higher lump-sum payments
amounts and more than one advance in a year 30
a new seniors supplement payment for recipients of a Commonwealth Seniors Health Card[6] or Gold
Card combining both the current Seniors Concession Allowance (SCA)[7] and the Telephone Allowance, and
the development of the Pensioner and Beneficiary Living Cost Index (PBLCI).[8]
Harmer review of pensions
There has been public agitation for increases in the rate of the pension, especially for age pensioners, for some 35
time. The Government announced a general review of the tax system on 13 May 2008.[9] As part of the review,
the Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, announced that
the Secretary of her portfolio department, Dr Jeff Harmer, would undertake a review of the pension system. The
Pension Review (Harmer Review) undertook an investigation into measures to strengthen the financial security of
seniors, carers and people with disabilities. The Government released the findings of the Harmer Review on 12 40
May 2009.[10] The key findings of the Harmer Review addressed through the pension reforms announced in the
200910 Budget are:
single full rate pensioners should be a priority. The existing single rate of pension does not adequately
recognise the costs for those wholly reliant on the pension to support them
the relativity of the rate of pension for singles to that of couples is too low and should be in the range 45
of 64 to 67 per cent. Currently it is around 60 per cent



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the payment of existing supplements and allowances could be simplified by integrating them into either
a pension supplement or the base rate
pension payments should be tied to changes in the actual cost of living faced by pensioners and
there is scope to target pension increases to those who have little or no private means.
One-off increase in the single rate of pension of $30 per week 5
Finding number 3 of the Harmer Review stated:
The Review finds that, on the basis of its analysis of the outcomes achieved by pensioners, evidence provided in
the consultations and its analysis of relative needs, the relativity of the rate of pension for single people living by
themselves to that of couples is too low.[11]
There was no couple rate of pension from 1909 to 1961, just one rate paid to all persons who qualified. There 10
was then a split to a lower partnered rate recognising that two persons sharing the same accommodation
enjoyed some benefits and the costs were not double that of one person; for example, rates and the cost of
utilities could be shared.
The Harmer Review also commented on the pension rate and adequacy issue:
Finding 6: The Review finds that, taking into account the totality of the package of the current pension base 15
rates, supplements and the value of the Seniors Bonus, the rate of pension paid to couples appears to be
adequate for those pensioners living in their own homes or public rental housing, and without unusually high
costs of health or disability.[12]
The Harmer Review concluded that, in the main, the totality of assistance to coupled pensioners was adequate.
However, the Reviews analysis did identify an additional group for whom the current rates of total assistance do 20
not appear to be providing a basic acceptable standard of living, that is, pensioners who do not own their own
homes and rent privately:
Finding 7: The Review finds that there is strong evidence that many pensioners in private rental housing face
particularly high costs and have poor outcomes. Rent Assistance and social housing have complementary roles
to play in addressing the financial security of these pensioners. The Review notes that the government has 25
proposed an increased investment in social housing and considers that reforms to Rent Assistance would
complement this.[13]
There are thus two main reasons for the one-off increase in the rate of the single pension. Firstly, its relativity to
the combined partnered rate of pension. Secondly, the pension rate is inadequate for pensioners to live on
against the increasing cost of living, where the pension is their only means of support. The current rates of 30
pension from 20 March 2009 are $569.80 per fortnight (pf) for singles and $475.90 pf for each member of a
couple.[14] The one-off $30 per week increase plus the $2.49 Pension Supplement will bring the single rate of
pension to 66.3 per cent of the combined partnered rate of pension.
Pension rate increases against increases in the cost of living
As a matter of legislative requirement, pension rates are indexed twice a year to either Consumer Price Index 35
(CPI) increases or to 25 per cent of Male Total Average Weekly Earnings (MTAWE). Whichever factor provides the
greater increase is the factor used. Since 1997, when it was made a legislative requirement, it has been the
indexation to MTAWE that has in most cases provided for the pension rate increases, not the CPI increases. Prior
to that the previous Hawke and Keating governments maintained the pension rate at 25 per cent of MTAWE as a
matter of policy, providing for three separate one-off ad hoc increases above the CPI factor. 40



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Table 1 tracks the relativity of pension rates to the CPI from March 2003 to March 2008.
Table 1: Increases to the single pension rate under actual and alternative scenarios, March 2003 to March 2008

Source: Department of Families, Housing, Community Service and Indigenous Affairs (FaHCSIA), Annual report
200708, Canberra 2008, p. 137, viewed 19 May 2009, 5
http://www.fahcsia.gov.au/about/publicationsarticles/corp
/Documents/2008%20Annual%20Report/default.htm
As can be seen, against cost of living increases (that is, the CPI) the pension rate has more than maintained its
adequacy. This is due to its indexation against 25 per cent of MTAWE. However, as the Harmer Review
suggested, those in the private rental market have done less well. The Government has claimed the proposed 10
single pension rate increase is to improve the financial security of pensioners.[15] It is aimed at addressing the
problem of those in private rental. Table 2 demonstrates that age pensioners in private rental have done less
well, in real terms, compared to those not in private rental.
Table 2: Maximum payments to recipients of pension: index of real pension rates, June 2003 to June 2008
2003 2004 2005 2006 2007 2008
Age Pensionsingle 100.0 103.0 103.0 105.1 107.0 108.2
with Rent Assistance 100.0 102.5 102.5 104.2 105.8 106.8
Age Pensioncouple 100.0 103.0 103.0 105.2 107.0 108.3
with Rent Assistance 100.0 102.7 102.7 104.6 106.3 107.4
Source: Department of Families, Housing, Community Service and Indigenous Affairs, Annual report 200708, 15
Canberra 2008, p. 135, viewed 19 May 2009, http://www.fahcsia.gov.au/about/publicationsarticles/corp/
Documents/2008%20Annual%20Report/default.htm
Other measures in the pension package are aimed at addressing the issue of the future maintenance of the rate
of pension. These are the proposed new indexation factor of 27.7 per cent of MTAWE and the new indexation
benchmark, the PBLCI. From September 2009, the rate of pension will be indexed to three factors: movements in 20



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the CPI, 25 per cent of MTAWE and the proposed new index for pensioners and beneficiaries, the PBLCI. There is
no indication yet as to what factors the PBLCI will consist of.
Pension Supplement
The pension changes presented in the 200910 Budget feature a collapsing of several supplementary pension
payments into a new Pension Supplement. The Pension Supplement will be $1462.76 a year for a single person 5
or $2199.60 for couples. For the 20 September 2009 rate increases, the Pension Supplement rate will increase
the amounts provided to single pensioners by $2.49 per week and $10.14 per week (combined), or $5.07 per
week each, for partnered rate recipients.
The new Pension Supplement replaces the current Utilities Allowance, Pharmaceutical Allowance (PhA),
Telephone Allowance and the Goods and Services Tax (GST) pension supplement. The Pension Supplement is to 10
be paid fortnightly from 20 September 2009 and from 1 July 2010 pensioners will have the choice to be paid
quarterly. The Pension Supplement is also to be accompanied by a Seniors Supplement which will combine both
the current Telephone Allowance and the Seniors Concession Allowance for CSHC holders.[16]
Pension Supplement income test
The Pension Supplement, unlike the payments it is replacing, can be reduced by income. Currently, the 15
supplement payments that are to be replaced are not income tested, with entitlement contingent only on a
person being entitled to a qualifying pension or benefit payment. With the proposed new Pension Supplement,
even were income reduces the qualifying pension or benefit payment to zero, the Pension Supplement can still
be paid and then reduced by income. The reduction rate will be at the same rate as the proposed new pension
income test taper rate, that is, 50 cents in the dollar for excess income over the free area. The Pension 20
Supplement can be reduced to $15.20 a week for a single or $22.90 a week for couples before it is also not
payable.
Comment
The Pension Supplement will enable the simplification and rationalisation of several different payments.
Currently the PhA and the GST pension supplement are part of the pension rate but the Utilities Allowance and 25
the Telephone Allowance are not part of the rate. For the first time, persons whose income exceeds the income
test cut-off point for the basic pension may still be entitled to some supplement payment in the form of the
Pension Supplement.
The pension rate increases and the Pension Supplement are not to be provided to recipients of the PPS. The PPS
originated in 1973 as the Supporting Mothers Benefit, then later the Supporting Parents Benefit and later the 30
Sole Parent Pension. Since its inception, it has been paid at the pension rate of payment and using the pension
means testing arrangements. Not including the PPS with the other pension payments in relation to the one-off
$30 increase and the increased income test taper rate, will indirectly create a new tier of income support. The
PPS will be paid at a higher rate than the other allowance payments (such as Newstart Allowance) but at a lower
rate than the other pension rate payments. 35
The increased taper rate of 50 cents in the dollar of excess income returns the pensions income test taper rate
back to the rate it was before July 2000. This was when it was reduced to 40 cents in the dollar under the
compensation arrangements for the introduction of the Goods and Services Tax. A higher taper rate allows fewer
people with higher incomes access to a pension. Under the proposed new income test rules, the income test cut-
off limits will be reduced from $47,444 to $38,693 per annum and for couples, their combined income from 40
$72,423 to $59,228. This targets the pension to those on lower incomes and will realise savings.
Some pensioners will benefit from transitional arrangements that will apply to those currently on a part-rate
pension who would otherwise suffer a loss of payment rate under the new higher taper rate. Their rate will be



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preserved in real terms and they will also get the benefit of the new Pension Supplement until they are better off
under the new rules. This is achieved by way of the pension rate increasing over time due to the indexation
arrangementssee Pension rate increases against increases in the cost of living above. Around 70 per cent of
all existing pensioners will be immediately better off following the reforms and will move to the new system
immediately. This includes around 93 per cent of all single rate pensioners. 5
The separate and new income test (Work Bonus) for earned income has the benefit of encouraging employment.
However, it adds some complexity to the income test.
Change to nursing home daily care fee
One of the concerns expressed about any increase in the pension rate has been the resultant increase in the
daily care fee charged for persons in residential aged care. The Aged Care Act 1997 (ACA) stipulates that the 10
maximum amount of the daily care fee for a person in residential aged care is currently 85 per cent of the basic
single rate of pension. A raising of the single rate of pension by $30 per week would normally see 85 per cent of
this increase added to the fee. The Government has announced that it intends amending the ACA to reduce the
maximum fee amount down to 84 per cent of the basic single pension rate.[17]
Raising the age pension age to 67 15
The 200910 Budget includes a proposal to gradually raise the Age Pension access age to age 67, commencing
July 2017 and reaching age 67 from 2023. The Age Pension access age has been 65 since its inception in 1909.
In fact, in 1909 the access age was 65 for both men and women, but it reduced to age 60 for women in 1910.
The age pension access age for women has been incrementally raised from age 60 to 65 and this will be
completed in 2014. 20
Life expectancy at birth in 190110 for males was 55.2 years; and for females, 58.8 years.[18] Life expectancy at
birth in 200507 was for males, 79 years; and for females, 83.7 years.[19]
Other countries have recently announced increases in their age pension access age. In the United Kingdom (UK),
the Parliament is currently debating pension reforms presented in a 2006 White Paper. Reforms include taking
into account increasing longevity and encouraging extended working lives. It is proposed that the State Pension 25
age will rise gradually from age 65 (men and women) to age 68 by 2044. In the United States the access age is
being incrementally raised to age 67 by 2027. In Germany, between 2012 and 2029, the normal pensionable age
will rise from age 65 to age 67 with eligibility requiring at least 5 years contributions from employment income
into their personal pension fund amount. In Germany for persons born after 1964, the pensionable age is 67.
From 2012, the full pension is payable at 65 with at least 45 years contributions. 30
Table 3 outlines how the proposed Australian changes will affect different age groups.
Table 3: Proposed raising of the age pension age in Australia: who will be affected
Date New age pension age Affects people born
When group reaches new age pension age
1 July
2017
65 years & 6 months 1 July 1952 to
31 December 1953
1 January 2018 to
30 June 2019
1 July
2019
66 years 1 January 1954 to
30 June 1955
1 January 2020 to
30 June 2021
1 July 66 years & 6 months 1 July 1955 to 1 January 2022 to



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2021 31 December 1956 30 June 2023
1 July
2023
67 years From 1 January 1957 From 1 January 2024
Source: J Macklin, (Minister for Families Housing, Community Services and Indigenous Affairs), Secure and
sustainable pension reform: Age Pension age, media release, Canberra, 12 May 2009, viewed on 21 May 2009,
http://www.jennymacklin.fahcsia.gov.au/internet/
jennymacklin.nsf/content/age_pension_12may2009.htm
The Pensioner Beneficiary Living Cost Index 5
The establishment of a new and extra indexation factor for the pension rates, the PBLCI, was announced in the
Budget.[20] It will be interesting to see whether such a pensioner/beneficiary specific price index will realise a
different factor for indexation. The argument has been made that the basket of goods used for the CPI is not
representative of the spending of aged pensioners. This may equally be true for other population groups.
However, the ABS has constructed several population sub-group specific indices, the earliest going back to 1981 10
and latest covering the period 1998 to 2005.[21] All of this work has shown that these specific indices (and there
is one for aged pensioners) are changing at virtually the same rate as the overall CPI.
Using the latest example, over the period June 1998 to June 2005, the ABS aged pension household specific
index rose by 23 per cent while the All Groups CPI rose by 22.6 per cent. What this means is that the basket of
goods and services that aged pensioners are buying rises in price (inflates) at around the same rate as the basket 15
of goods used to calculate the All Groups CPI.
Cost of the age pension
The tables below set out the cost of the age pension since the 199697 Budget.
Table 4: Costs of the age pension 199697 to 200708 ($ billion)
Payment name 199697 199798 199899
(a)
199900 200001 200102
Age pension 13.03 13.11 13.57 14.15 15.69 16.65
20
Payment name 200203 200304 200405 200506 200607 200708
Age pension 17.77 19.02 19.88 20.67 22.83 24.67
(a) The 199899 Budget saw the change from cash accounting to accrual accounting. All amounts from the
199899 Budget onwards are accrual. All amounts up to the 1997-98 Budget are cash.
Source: Parliamentary Librarydata compiled from Portfolio Budget Statements 199697 to 2007 08.
The Age Pension cost estimates as presented in the 200910 Budget are outlined in Table 5, below:
Table 5: Budgeted expenses for income support for seniors 25



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Source: Australian Government, Portfolio budget statements 2009-10: budget related paper no. 1.7: Families,
Housing, Community Services and Indigenous Affairs portfolio, Commonwealth of Australia, Canberra, 12 May
2009, p. 91, viewed 19 May 2009, http://www.fahcsia.gov.au/about/publicationsarticles/corp/
BudgetPAES/budget09_10/Pages/PortfolioBudgetStatements2009-10.aspx 5
The Age Pension is the single biggest program item cost in the Federal Budget. The following points help to
place the proposed changes into some perspective.
cost of the Age Pension for 199697 was $13.03 billion which was 10 per cent of then total
Commonwealth outlays of $129.68 billion for that year
the estimated cost of the Age Pension for the 200910 year is $29.2 billion, which is 8.6 per cent of 10
estimated total Commonwealth outlays of $338.2 billion
the estimated cost of the Age Pension for 2012-13 is $36 billion, which is 9.6 per cent of estimated
total Commonwealth outlays of $375 billion for that year
the cost of providing the Age Pension at about $30 billion is a large amount for any single program,
especially when compared to the whole of the Defence budget, which in the 200910 year is estimated to be 15
$20.9 billion. Therefore, any Government is likely to proceed carefully with any policy decision to increase the
rate of the Age Pension, let alone all pensions. Despite the decline in Age Pension expenditure as a proportion of
total Commonwealth outlays, $30 billion remains a very large amount.

20

[1]. Australian Government, Budget measures, budget paper no. 2: 200910, Commonwealth of Australia,
Canberra, 2009, pp. 240-246, viewed 14 May 2009,
http://www.aph.gov.au/budget/2009-10/content/bp2/html/index.htm
[2]. Utilities Allowance is paid quarterly to a person on a qualifying income support payment being Age 25
Pension, Disability Support Pension, Carer Payment, Partner Allowance, Wife Pension, Widow B Pension,
Bereavement Allowance or Widow Allowance. From March 2009 Utilities Allowance is $259.40 per member of a
couple and $518.80 for a single annually.
[3]. Pharmaceutical Allowance (PhA) is paid fortnightly to a pension payment recipient, or an income support
allowance payment recipient during a period of temporary illness or is aged 60 or more. From March 2009 PhA is 30
$3.00 per week for a single or $3.00 per week for a couple combined.
[4]. Telephone Allowance is payable to a holder of a Pensioner Concession Card or a Commonwealth Seniors
Health Card. From March 2009 the quarterly rates of Telephone Allowance are $23.00 single or $11.50
partnered each. A higher rate of $34.60 single or $17.30 partnered each is payable where the recipient has an
Internet connection. 35
[5]. The pension GST supplement was introduced as part of the 1 July 2000 Tax Reform Package. It was
based upon 4 per cent of the then value of the basic rate of pension. After a deal with the Democrats, it was
aimed at ensuring pensioners were not disadvantaged by the price increases resulting from the GST. The GST



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supplement is indexed to the CPI. From March 2009 the GST pension supplement is $19.50 single or $16.30
partnered each.
[6]. The CSHC is issued to persons over Age Pension age with annual adjusted taxable incomes of less than
$50,000 single or $80,000 combined.
[7]. The Seniors Concession Allowance (SCA) is payable to a holder of a CSHC. The annual rate of SCA at 20 5
September 2008 is $514.00 per year paid quarterly.
[8]. W Swan (Treasurer) and J Macklin (Minister for Families, Housing, Community Services and Indigenous
Affairs), Secure and Sustainable Pension Reform: A pension that keeps up with the cost of living, media release,
Canberra, 12 May 2009, viewed 21 May 2009, http://www.jennymacklin.fahcsia.gov.au/internet/
jennymacklin.nsf/content/pension_cost_living_12may2009.htm 10
[9]. W Swan (Treasurer), Australias future tax system, media release, Canberra, 13 May 2008, viewed 19 May
2009, http://www.treasurer.gov.au/
DisplayDocs.aspx?doc=pressreleases/ 2008/036.htm&page
ID=003&min=wms&Year=2008&DocType=0
[10]. Australian Government, Tax review report on the retirement income system, Commonwealth of Australia, 15
Canberra, 12 May 2009, viewed 19 May 2009,
http://www.fahcsia.gov.au/about/publicationsarticles/corp/
budgetpaes/budget09_10/pension/pages/pensionreviewreport.aspx
[11]. Tax review report on the retirement income system, p. xiii.
[12]. Tax review report on the retirement income system, p. xiv. 20
[13]. Tax review report on the retirement income system, p. xiii.
[14]. These rates do not include PhA of $6.00 per fortnight single and $3.00 per fortnight partnered couple
each.
[15]. Budget paper no. 2: 200910, pp. 242-243.
[16] . Seniors Concession Allowance is paid quarterly to holders of a CSHC and from 20 March 2009 is 25
$129.70.
[17]. Budget paper no. 2: 200910, pp. 317-318.
[18]. Australian Bureau of Statistics (ABS), Australian Historical Population Statistics, 2008, cat. no.
3105.0.65.001, ABS, Canberra, 2008, viewed 20 May 2009,
http://www.abs.gov.au/AUSSTATS/abs@.nsf/ 30
DetailsPage/3105.0.65.0012008?OpenDocument
[19]. Australian Bureau of Statistics (ABS), Deaths, Australia, 2007, cat. no. 3302, ABS, Canberra, 2008, viewed
20 May 2009,
http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/
C67A858BA00CB846CA2568A9001393C6?OpenDocument 35
[20]. W Swan (Treasurer) and J Macklin (Minister for Families, Housing, Community Services and Indigenous
Affairs), Secure and Sustainable Pension Reform: A pension that keeps up with the cost of living.
[21]. Australian Bureau of Statistics (ABS), Analytical Living Cost Indexes for Selected Australian Household
Types: Update to June 2005, cat. no. 1350.0, ABS, Canberra, 31 August 2005.
40
END QUOTE

In my view the Commonwealth should have taken charge of this issue and taken on
municipal/shire councils for acting in contravention of Commonwealth law.
It should be understood that the Commonwealth exercising this power (regarding the CPI) has an 45
incidental to its constitutional powers to provide for pensioners, etc.


Hansard 1-3-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention) 50
QUOTE
Mr. BARTON.-They do not require to get authority from home, for this reason: That the local
Constitutions empower the colonies separately to make laws for the peace, order, and good government
of the community, and that is without restriction, except such small restrictions as are imposed by the



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Constitutions themselves, and, of course, the necessary restriction that they can only legislate for their
own territory. The position with regard to this Constitution is that it has no legislative power, except
that which is actually given to it in express terms or which is necessary or incidental to a power given.
END QUOTE
5
It ought to be understood that the Commonwealth provide pensions on what it considers is
appropriate considering the cost of living by the CPI. Hence, for councils to act in violation to
this principle is in my view unacceptable.
I understand that Premier Dennis Napthine held that it was a joke but considering that the High
Court of Australia in the 1904 case of Sydney Council versus Commonwealth held that rates 10
are a delegated taxation power of the States. Hence, rather than Premier Napthine ignoring
matters I view he should himself have implemented this long ago.

While I understand ICAC has declined to investigate matters against Premier Napthine as to the
monies provided to his racing horse partner, I view that as the States are created within s106 of 15
the constitution (The commonwealth of Australia constitution Act 1900 (UK)) then the States are
bound to comply with the legal principles embedded in this constitution, for so far they are not
specifically against the Commonwealth only (such as s116).

Hansard 1-3-1898 Constitution Convention Debates (Official Record of the Debates of the National 20
Australasian Convention)
QUOTE
Mr. BARTON.-They do not require to get authority from home, for this reason: That the local
Constitutions empower the colonies separately to make laws for the peace, order, and good government
of the community, and that is without restriction, except such small restrictions as are imposed by the 25
Constitutions themselves, and, of course, the necessary restriction that they can only legislate for their
own territory. The position with regard to this Constitution is that it has no legislative power, except
that which is actually given to it in express terms or which is necessary or incidental to a power given.
END QUOTE
30
Again:
Hansard 1-3-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention)
QUOTE
That the local Constitutions empower the colonies separately to make laws for the peace, order, and 35
good government of the community
END QUOTE

Contrary to the views of many the States (formally colonies) are also bound by laws for the
peace, order and good government. 40

We then have to consider was the reported 1.5 million dollars paid to the business partner of
Premier Napthine within this concept?
I do not think so.
45
It should be clear that any monies used from Consolidated Revenue Funds must be held
approved by an Appropriation Bill.

To give an example in the Commonwealth area:
Hansard 8-3-1898 Constitution Convention Debates (Official Record of the Debates of the National Australasian 50
Convention)
QUOTE
Mr. HOLDER.-A measure would be valid while it was a Bill, and invalid when it became a law.



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Mr. ISAACS.-That is a very terse and correct way of putting it, and it proves the absurdity of the provision.
We are, in my opinion, making the Senate too strong a body. To allow these matters to be carried into the
Supreme Court is to say that the Senate cannot protect itself, and that the states cannot protect themselves.
Surely that is not to be thought of for a moment. We want a people's Constitution, not a lawyers'
Constitution. We shall be making the Supreme Court, not the master, but the tyrant of the Constitution, by 5
inserting a clause of this kind. I do strongly appeal to my honorable friends to alter the clause in some way.
My view is that we should put in the word "proposed." At all events, we should do something in this
direction, and we should at least make a distinct provision that if a Bill does not comply with this clause, the
invalidity should go no further than the additional matter. That could be worked out no doubt in an
Appropriation Bill, but you could not work it out in a Taxation Bill, because where two subjects were 10
dealt with you could not tell which was the additional matter. You might make such a provision with
regard to the additional matter in Appropriation Bills. The court could then say that certain items were
not for the annual services of the year. They would be invalid, and the remainder of the Bill would be valid,
but that would lead to the difficulty of the court having to determine what were the ordinary annual services
of the year. 15
Mr. BARTON.-Are not the annual services the annual expenditure proper to the public service?
Mr. ISAACS.-Supposing that some compensation were being paid to a discharged public servant.
That would not come within the ordinary annual services.[start page 2003] It would not be proper to the
public service of the Commonwealth. It would not be a payment for services rendered in the future, but for
services in the past. We all know that in connexion with the ordinary annual Appropriation Bills 20
questions arise that make it very difficult to say what is and what is not an ordinary annual service.
END QUOTE

As such the monies that were provided to the meat works not being one of ordinary annual would
therefore have required a special Appropriation Bill to be passed by the Parliament. 25

Hansard 8-3-1898 Constitution Convention Debates
QUOTE Mr. DEAKIN.-
. The arguments of the Hon. Mr. Carruthers appear to have fallen on deaf ears, but, [start page 2042] as he
pointed out, if there be embedded in the Constitution a direct enactment that no proposed laws for taxation 30
including more than the one subject of taxation, and no proposed Appropriation Bill going outside the
ordinary services of the year, can be legally dealt with, both the Speaker of the House of
Representatives and the President of the Senate would not only be authorized, but would be
imperatively required, in the discharge of their duty, to rule such a measure out of order at any stage
of its existence. 35
END QUOTE

This quotation makes clear that any appropriation bills must be submitted together with the tax
Bills and no increases can eventuate during the financial year.
40
Hansard 2-3-1898 Constitution Convention Debates
QUOTE
Mr. REID.-I suppose that money could not be paid to any church under this Constitution?
Mr. BARTON.-No; you have only two powers of spending money, and a church could not receive the
funds of the Commonwealth under either of them. 45
[start page 1773]
END QUOTE



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Hansard 2-3-1898 Constitution Convention Debates
QUOTE
Mr. REID.-I suppose that money could not be paid to any church under this Constitution?
Mr. BARTON.-No; you have only two powers of spending money, and a church could not receive the 5
funds of the Commonwealth under either of them.
[start page 1773]
END QUOTE

Businesses are making contractual arrangements with manufactures and other suppliers and build 10
in their prices a certain overhead cost. With this they are bound to consider applicable taxation
laws and it is grotesque to expect businesses to have some kind of crystal ball as to somehow
know what some government might do after contracts to order goods to be supplied are already
made and legally binding.
15
At Commonwealth level I view the budget should be handed down prior to the New Year so that
in the event the Appropriation Bills/Taxation Bills are declines in the Upper House then after a 3
month interval they can be presented again. And failing then again a DOUBLE DISSOLUTION
and election can take place (taking another about 3 months) and if then the Appropriation
bills/Taxation Bills are declined again a Joint Sitting of the Houses is provided for. 20
Therefore to introduce the Appropriation Bills/Taxation Bills only weeks before the
commencement of the new financial year is upon the Upper House (Senate):

Hansard 9-3-1898 Constitution Convention Debates
QUOTE 25

Sir JOHN DOWNER.-Yes; that is better than nothing. It may be insufficient, but at all events, it is
something. But now it is provided that without [start page 2164] dissolution, after both Houses have met-the
House which represents the people and the House which represents the states-and have solemnly passed this
constitutional decree, having performed the very functions for which they were created, which was to 30
exercise independent judgments, although the results might end in disagreement, we are actually to destroy
the authority of the Senate. How? By the very next day forcing them to meet again, and go through the same
form, without any interval sufficient for the public excitement to be allayed. You pretend you are doing
something when, of course, you know you are doing nothing. You call them together again next day to repeat
their disagreement, without a single circumstance having intervened, either from lapse of time, the expression 35
of public opinion, or anything else-to meet again, and straight off settle the question on which they disagreed
the day before. And if they do not agree, you bring in what Mr. Holder wanted to bring about, which is the
domination of Australia, and of the states of Australia, by a numerical majority.
Mr. REID.-No, if they fix such a short interregnum, you can make up for it by taking longer to deal
with the Bill a second time. 40
Sir JOHN DOWNER.-Yes, if you are treated that way, you have the power in your own hands.
Mr. REID.-I do swear that the honorable member would take a long time.
Sir JOHN DOWNER.-I know that my right honorable friend, judging probably from the time I am taking
now, thinks that in such a case I would take a long time, if I were in the Senate. I admit that his surmise is
quite right in my case. I admit there are persons on whom this terrorism could not be practised, or on 45
whom, if practised, it would probably not be effective. But I am thinking of persons of weaker minds and
wills, and I say that, as far as this Constitution is concerned, it is absolutely necessary to put some provision



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in this Bill which will strengthen the Senate and prevent it being intimidated in the way indicated. We have
been frittering away the first principles of the Federal Constitution long enough.
END QUOTE

We had this Coco pop tax that was rejected by the Senate and then overnight the Bill was again 5
presented to the Senate and then passed. Just that the Bill failed to be left for minimum 3 months
and hence never was constitutionally valid.

Hansard 9-3-1898 Constitution Convention Debates
QUOTE 10
Mr. MCMILLAN (New South Wales).-I think there is a very simple way of looking at this question.
Surely the Senate would not reject a Bill, unless there was an important reason for doing so. I can
scarcely imagine the Senate rejecting a Bill which would put the finances into any difficulty-say, the usual
Bill for the expenses of the country. But, if the Senate did reject a Bill in calm judgment, is it not a
farce to think that under three months that judgment would be reversed? Surely it is only common 15
sense that there should be a reasonable interval for consideration? After the large amount of rhetoric on this
subject about delay, caution, and prudence, it seems ridiculous to talk about a delay of three months to give
consideration to a great question.
Mr. TRENWITH (Victoria).-With great respect, I submit to those who are objecting to this provision
that they are fighting a shadow. If they meant anything when they said there must be two sessions they 20
meant that the House of Representatives should have some interval to reconsider its position. It is no use to
say that the Senate can delay it. Delay is not what is required as the ultimate end of a dissolution, but
agreement, if possible. It would be just as well to say that a measure should be twice considered in the same
session, as that there should be two sessions without an interval. I think that one session should be
sufficient, but if there is to be a second consideration it ought not to be possible for Parliament to be 25
prorogued for a day, to meet again in a state of heat and temper, and to pass the Bill without
discussion. That is not the object of providing two sessions, and I would submit to my honorable
friends, who in the main agree with me, that this is not a point worth fighting about. It is admitted
generally that the Executive will allow some reasonable time, probably not less than three months,
but it is urged that there may be occasions when, if a Bill is not carried, the whole of the finances of 30
the Commonwealth will be thrown into confusion. That could only happen on the rejection of an
Appropriation Bill.
Mr. MCMILLAN.-Which would mean revolution?
Mr. TRENWITH.-Yes, and that is inconceivable. Delay in passing an important Taxation Bill might
embarrass the Executive very materially, but it could not cause such embarrassment as would throw the 35
whole of the finances of the country into confusion. If a Treasurer with a heavy deficit introduced a scheme
of taxation, with a view to meeting that deficit, it might be extremely important to him that he should get
the Bill passed, but if he did not he could go on for three months increasing the deficit. If the question of a
second session were before us I should argue against it, but as provision has been made for it, it [start page
2166] should be a second session such as we are accustomed to, with some reasonable interval. I would 40
strongly urge on my honorable friends the desirability of conceding where we can concede. That is what I
have always been urging on those who have been opposed to me, and I now make the appeal to those who
agree with me. This is a point we can concede without any serious danger. There may sometimes be
considerable inconvenience, but that will be all. I hope that the discussion of this matter will not occupy
much more time, but that we shall say that we are prepared to make concessions wherever we can, in order 45
that we may obtain reasonable concessions when we come to ask for them ourselves.
The CHAIRMAN.-Do I understand that Mr. Symon wishes to amend his amendment by making
the period specified three months instead of six?
Mr. SYMON.-Yes, sir.
END QUOTE 50



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For the States the same principle must be deemed to apply. Again, we cannot wreck good
business management by irresponsible political decisions.

HANSARD 17-3-1898 Constitution Convention Debates 5
QUOTE
Mr. BARTON.- Having provided in that way for a free Constitution, we have provided for an
Executive which is charged with the duty of maintaining the provisions of that Constitution; and,
therefore, it can only act as the agents of the people.
END QUOTE 10

HANSARD 17-3-1898 Constitution Convention Debates
QUOTE
Mr. BARTON.- Of course it will be argued that this Constitution will have been made by the
Parliament of the United Kingdom. That will be true in one sense, but not true in effect, because the 15
provisions of this Constitution, the principles which it embodies, and the details of enactment by which
those principles are enforced, will all have been the work of Australians.
END QUOTE

While I am retired nevertheless I hold the view that unless we look after responsible business 20
management We, as a nation, are going down the gutter. Hence, politicians who are acting as
our agents must act responsible and given advance warning, not just weeks, to businesses so
they can calculate any additional taxes, duties, charges into their overhead cost.
When a business goes bankrupt then those employed with such a business will be without a job.
While bankruptcy will from time to time eventuate irrespective of government good intentions it 25
is nevertheless essential that our agents are acting honourable and with wisdom and not
recklessly destroy directly or indirectly businesses because of their irresponsible conduct.

HANSARD 30-3-1897 Constitution Convention Debates
QUOTE 30
The Governor-General will call to his Council six or seven gentlemen whom he thinks capable of being
the first Ministers in the Commonwealth. He will certainly not choose all protectionists or all
freetraders, but strong, capable, and able politicians, representative of the views of all classes of the
community, and there will be no mandate of the people about it.
END QUOTE 35

Meaning that our current system of just having people commissioned of one political party is
contrary to the spirit of the constitution. What should be understood is electors do not vote for a
government, not for who shall be Prime Minister/Premier. They vote for a representative and the
Governor-General/Governor then amongst those elected may commission then as an advisor to 40
the Governor-General/Governor.
Within the federal context the Governor-General, as he did when commissioning Edmund
Barton, can commission a person for up to 3 months not even being a Member of Parliament.
While it is some self-made (by political parties) convention that the Governor-General/Governor
commission a person upon the advice of the executive, the truth is that the Governor- 45
General/Governor has the sole power to decide who shall be commissioned to form a
Government, even if the person happens not to be a Member of Parliament.
HANSARD 17-3-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention)
QUOTE Mr. DEAKIN.- 50
What a charter of liberty is embraced within this Bill-of political liberty and religious liberty-the
liberty and the means to achieve all to which men in these days can reasonably aspire. A charter of



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liberty is enshrined in this Constitution, which is also a charter of peace-of peace, order, and good
government for the whole of the peoples whom it will embrace and unite.
END QUOTE
HANSARD 17-3-1898 Constitution Convention Debates
QUOTE 5
Mr. SYMON (South Australia).- We who are assembled in this Convention are about to commit to the
people of Australia a new charter of union and liberty; we are about to commit this new Magna Charta
for their acceptance and confirmation, and I can conceive of nothing of greater magnitude in the whole
history of the peoples of the world than this question upon which we are about to invite the peoples of
Australia to vote. The Great Charter was wrung by the barons of England from a reluctant king. This new 10
charter is to be given by the people of Australia to themselves.
END QUOTE
The legal principle embedded in the constitution is that no person can be paid an allowance
towards expenditure and loss of income unless the person is holding a seat in Parliament. Yet, we
have this huge fraud upon taxpayers that former members of parliament are nevertheless getting 15
all kinds of perks after having left the parliament.
Also, Ministers of the Crown are not employed other than by the British Crown. Hence, any
superannuation they seek to claim is between the British Crown and the minister but nothing to
do with the taxpayers. Also, any person who is not a Minister cannot receive any salary because
to receive this would offend the legal principle embedded in the constitution. 20

Hansard 27-1-1898 Constitution Convention Debates
QUOTE
Mr. BARTON.-I was going to explain when I was interrupted that the moment the Commonwealth
legislates on this subject the power will become exclusive. 25
END QUOTE

Hansard 27-1-1898 Constitution Convention Debates
QUOTE
Mr. BARTON (New South Wales).-If this is left as an exclusive power the laws of the states will 30
nevertheless remain in force under clause 100.
Mr. TRENWITH.-Would the states still proceed to make laws?
Mr. BARTON.-Not after this power of legislation comes into force. Their existing laws will, however,
remain. If this is exclusive they can make no new laws, but the necessity of making these new laws will be
all the more forced on the Commonwealth. 35
END QUOTE

Hansard 28-1-1898 Constitution Convention Debates
QUOTE
Mr. GLYNN (South Australia).-I desire to call the attention of the leader of the Convention to an 40
apparent vagueness in the word "exclusive," to which reference has not yet been made. The word
"exclusive," no matter at what time the power arises, whether on the coming into being of the
Commonwealth, or the exercise of the power by the Federal Parliament, may mean, and I believe does
mean, that the power of the state to legislate ceases. On the question of whether the exclusive power
under this provision comes into being with the establishment of the Commonwealth, I would call the 45
attention of the leader of the Convention to clause 84. That clause seems to indicate that this exclusive



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power arises the moment an Act is passed. It speaks of the exclusive power of enforcing customs duties
being vested in the Federal Parliament, but the second paragraph says-
But this exclusive power shall not come into force until uniform duties of customs have been imposed
by the Parliament.
It would appear that without that limitation the exclusive power would come into force at once, and the 5
position would be as stated by the Victorian representatives. If you pass this clause as it [start page 255]
stands the state could no longer legislate with regard to Chinese.
Mr. BARTON.-If the exclusive power is given without any restriction, I think it would arise immediately
on the establishment of the Commonwealth.
END QUOTE 10

Hansard 28-1-1898 Constitution Convention Debates
QUOTE
Mr. GLYNN.-There seems to be some doubt as to whether the exclusive power arises upon the
establishment of the Commonwealth or on the exercise of the power of legislation. The doubt seems to 15
be removed by clause 84. It is said that if we put this provision in clause 52 the exclusive power may be
postponed until legislation takes place. But may you not then have a concurrent power, and may not the
competence of the local Legislature to legislate in the matter be continued as long as the legislation is not in
contradiction of federal legislation?
Mr. DEAKIN.-That is the point. 20
Mr. GLYNN.-Yes, and there is still a vagueness in the word "exclusive." If it is doubtful whether the
exclusive power commences with the foundation of the Commonwealth, and if it is possible that it may only
come into being on the passing of legislation, may it not still be said that on the passing of exclusive
legislation the power of the local Parliaments to legislate is extinguished, but that on the passing of
concurrent legislation that power does not cease? 25
Mr. REID (New South Wales).-I think that enough has now been said on this subject by honorable
members both sides of the chamber, and I have only a very few remarks to offer. It appears that if the
sub-section remains where it is state laws will be valid until federal legislation, but the states will not be
able to alter or improve those laws during the possibly long interval between federation and federal
legislation. Under these circumstances, as we leave to the states for an indefinite time the power of 30
maintaining the laws they have, we should grant to them the power of improving those laws. It would
recommend the Constitution more to a large number of persons if we put the sub-section in clause 52,
thus enabling each state to legislate on this matter until the Federal Parliament comes in and legislates
for all.
END QUOTE 35

What this means is that the moment the Commonwealth commenced to enact the Land Tax
Office on 11 November 1910 then the States no longer could apply a land tax, and so neither
municipal/shire councils any delegated tax such as rates (effectively a tax on land, and not a tax
for services). While it has been argued that the Commonwealth abolished land taxes in 1956 and 40
so N.S.W. in 1956, and other states subsequently were having their land taxation legislative
powers returned to them, the point is that the constitution doesnt provide for Commonwealth
law to be returned to the states. Once a Commonwealth law, even if repealed/abolished it
remains nevertheless an exclusive Commonwealth legislative power.
45
Lets be clear:
The following will also make clear that the Framers of the Constitution intended to have CIVIL
RIGHTS and LIBERTIES principles embedded in the Constitution;



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HANSARD 17-3-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention)
QUOTE Mr. CLARK.-
for the protection of certain fundamental rights and liberties which every individual citizen is entitled to
claim that the federal government shall take under its protection and secure to him. 5
END QUOTE

Hansard 1-3-1898 Constitution Convention Debates
QUOTE
Mr. HIGGINS.-Suppose the sentry is asleep, or is in the swim with the other power? 10

Mr. GORDON.-There will be more than one sentry. In the case of a federal law, every member of a
state Parliament will be a sentry, and, every constituent of a state Parliament will be a sentry.
As regards a law passed by a state, every man in the Federal Parliament will be a sentry, and the whole
constituency behind the Federal Parliament will be a sentry. 15
END QUOTE

Well, forget your political affiliation but consider your duties and obligations as an agent to
protect the rights of constituents.
And, I view, Premier Napthine ought to take head that it are generally the pensioners who created 20
the prosperity of what Australia is about. Politicians are the once creating financial havoc and a
financial mess. Therefore, protecting constituents from excessive rate increase beyond the CPI is
not a joke but in obligation of every politicians.
Hardship for pensioners, the disabled, and others is not and never should be considered to be
some kind of a joke. The pensioners have done their bit and should be able to be recognised for 25
this and provided with what they are entitled upon as the fruits of their labour. The disabled have
it hard enough in life that anyone who fails to understand the additional burden in life most able
body persons do not have then better learn what it is about and then see if it is a joke to provide
them with some kind of financial support that the Commonwealth assist with and have this then
unduly eroded by councils who are for example wasting monies on political campaigns for an ill- 30
fated referendum, to hand out monies nothing to do with the peace, order and good government
of councils. Yes, they are bound by the same rules when exercising delegated powers of a State!
So, why should a councillor be able to give away $20,000 of rate payers for all kind of schemes
often nothing more but to promote themselves for re-election? And, many others who are
depending upon financial support of the Commonwealth, such as war widows/widowers surely 35
should not then have the little they receive been undermined by excessive spending by councils. I
recall how Banyule City Council wanted to build in partnership with land Lease a 40 million
dollar complex. They couldnt even organise alternative parking for the parking areas that were
ripped up. As such its competence was in my view zero. I was the lone objector that the scheme
was unconstitutional and in the end it didnt go ahead, but as the swimming pool was already 40
demolished a new one had to be build. Now, what needs to be considered is why on earth should
a land-lock council have an expensive swimming pool with a wave where a beach is not far
away? Pensioners, disabled and others are struggling to make end meet and then a council is
splurging on something like a Taj Majhal.
As a pensioner, to keep cost down, I do my own renovations so as to live within my budget while 45
council is giving to some private club many thousands of dollars toward building a new kitchen
only available to its members. This kind of expenditure to me is not legally justified nor
appropriate. In my view, all rate increases since 2009 that exceeded the CPI should be refunded
with interest. After all, if a pensioner, disabled person or other welfare recipients were to be too
late with paying rates then they are slugged interest and so likewise it should be visa versa. 50
.
Overpaid politicians who are inflicting a financial mess upon constituents surely may not
understand the hardship they inflict upon others. Time to wake up about reality.




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There is a lot more to it all but for now this should do.
.
Are you a worthy sentry?
Awaiting your response, G. H. Schorel-Hlavka O.W.B. (Friends call me Gerrit)
5
MAY JUSTICE ALWAYS PREVAIL

(Our name is our motto!)