Section 51(xxxvii) of the Australian Constitution permits the Commonwealth to legislate on matters referred to it by any state. As Australia is a federation, both states and the Commonwealth have legislative power, and the Australian constitution limits Commonwealth power (see Section 51). Section 51(xxxvii) allows for a degree of flexibility in the allocation of legislative powers.
In practice, the referral power has been quite important in allowing the Commonwealth to enact legislation.
Read more about Section 51(xxxvii) Of The Australian Constitution: Uncertainty Regarding The Scope of Section 51(xxxvii), Limitation of Conferred Power, Examples of The Use of Section 51(xxxvii)
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