Question

Sammy is a member of the Legislative Assembly of the Victorian Parliament. She is about to introduce a bill into parliament to introduce a Victorian currency. Will this bill be valid? Justify your answer.

a) Yes, because state parliaments have the exclusive power to issue currency.
b) No, because the power to issue currency is a federal responsibility.
c) Yes, because Victoria has concurrent powers with the federal government on currency matters.
d) No, because introducing a state currency goes against the Constitution.

Answer 1

A bill introduced by Sammy in the Victorian Parliament to issue a Victorian currency would be invalid as the power to issue currency is an exclusive federal responsibility under the Australian Constitution and based on historical precedents.

Step-by-step explanation:

The question of whether Sammy, as a member of the Legislative Assembly of the Victorian Parliament, can introduce a bill to introduce a Victorian currency is a matter of constitutional division of powers. Under the Australian Constitution, the power to issue currency is exclusively a federal responsibility. This power is not shared concurrently with the states, and any attempt by a state parliament to issue its own currency would be invalid and likely unconstitutional.

This aligns with historical precedents such as the Currency Act, which emphasized central control over the issuance of currency, and past practices in the United States, where states are barred from printing money. Furthermore, to maintain economic stability and prevent the undermining of the national currency system, it is essential that there be a single, uniform currency managed by the federal government. Therefore, the correct answer is option b: No, because the power to issue currency is a federal responsibility.