Business Law – Lecture 2 – 29/07/2013
E makes law
The legislature, the executive and the judiciary should remain functionally separate as much as possible.
In Australia, members of the executive (Prime Minister/Premier/Chief Minister) are also members of
the legislature (parliament) which means that the legislature and the executive and are not strictly
Legislative Power is the power to make law, and in Australia is exercised by the Federal Parliament and
the various State and Territory parliaments.
The House of Representatives is the lower house of the Federal parliament. It is the ‘peoples house’
providing equal representation for the people of Australia. Australia is divided into electorates – about
150 – with roughly equal numbers of voters, each of which elects a representative. The political party
with the majority of members in the House of Representatives forms executive government.
The Senate is the upper house of the Federal parliament. It is the ‘States house’; it protects the rights of
the States. There is an equal number of Senators from each State (12) in order to protect the interests of
the less populous States; the Territories are represented by 2 Senators each.
Proposal Drafting of Bill Lower House Upper House Royal Assent Commencement
If a bill is passed by one House but rejected by the other House the Governor-General is empowered to
dissolve both Houses, known as a double dissolution.
Executive power is the power to administer the law i.e. carry on the business of government and
maintain order and security. The executive power of the Commonwealth is vested in the Governor-
General as advised by the Federal Executive Council consisting of the Prime Minister and other
Ministers. The various State constitutions vest executive power in the Governor as advised by Executive
Council consisting of the Premier and other Ministers.
Judicial power is the power to interpret the law and to apply it in the resolution of particular disputes;
judicial power is exercised by the courts. Each of the six States and two mainland Territories has its own