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Economics

The Levels of Government and Constitutional Powers

An Overview of the Government and its Powers

This post will help you further your understanding of how the basic levels of governments work and constitutional powers, in line with your Prelim Economics course. The government has many powers that it spreads across its three main levels – federal, state and local.

  • Federal powers are known as exclusive powers.
  • State powers are known as residual powers.
  • Powers that are shared by both state and federal levels of government are known as concurrent powers.

The Australian constitution is a key factor in determining how these powers are spread out, and thus plays a large role in determining what economic policies can be used nationwide and statewide.

The videos below explain these concepts in more detail.