Constitutional Position of Local Government
Local government powers are determined by state governments, and states have primary responsibility for funding and exclusive responsibility for supervision of local councils.
There is no explicit mention of local government at all in the Australian constitution, although they are mentioned in the constitutions of each of the six states. A 1988 referendum sought to explicitly insert mention of local government in the federal constitution but this was comprehensively defeated. Federal government interaction with local councils happens regularly through the provision of federal grants to help fund local government managed projects.
Read more about this topic: Local Government In Australia
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