Local Government Funding and Constitutional Recognition

If local government were to become a third level of government in the Australian constitutional system, then issues would arise with respect to its powers and what rule would apply when local government by-laws were inconsistent with Commonwealth or State laws. The existing rule set out in s 109 of the Commonwealth Constitution would not necessarily apply and some kind of implication would need to be drawn. This could potentially lead to limitations on the operation of Commonwealth and State laws.