The authority of the Senate in regard to Money Bills formed the subject of much discussion, and was decided by a compromise which, it was hoped, would satisfy both those who desired to secure the { 223} financial supremacy of the House of Representatives and the inhabitants of the smaller States, who would naturally struggle for the rights of the Senate in which they would be on a footing of equality with their more powerful neighbours. The views of the former were met by the provisions that "laws appropriating any part of the public revenue, or imposing any tax or impost, shall originate in the House of Representatives," and that "the Senate shall have equal power with the House of Representatives in respect to all proposed laws, except laws imposing taxation and laws appropriating the necessary supplies for the ordinary annual services of the Government, which the Senate may affirm or reject, but may not amend. But the Senate may not amend any proposed law in such a manner as to increase any proposed charge or burden on the people." The interests of the latter were safeguarded by the four succeeding sub-sections:

"Laws imposing taxation shall deal with the imposition of taxation only.

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"Laws imposing taxation, except laws imposing duties of customs on imports, shall deal with one subject of taxation only.

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"The expenditure for services other than the ordinary annual services of the Government shall not be authorised by the same law as that which appropriates the supplies for such ordinary annual services, but shall be authorised by a separate law or laws.

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"In the case of a proposed law which the Senate may not amend, the Senate may at any stage return it to the House of Representatives with a message requesting the omission or amendment of any items or provisions therein. And the House of Representatives may, if it thinks fit, make such omissions or amendments, or any of them, with or without modifications."[3]

The executive authority of the Commonwealth is to be exercised by the Governor-General as the Queen's representative, with the aid and advice of a Federal Executive Council. Considerable discussion took place at the Convention as to the relations which should exist between the Federal Executive and Legislature, some of the Representatives being in favour of the British system, others of the direct popular election of the head of the Government. It was finally agreed that the members of the Council should be chosen and summoned by the Governor-General, should hold office, during his pleasure, and should be capable of being chosen and of sitting in either House of Parliament. They are to execute the provisions of the Constitution and the laws of the Commonwealth; to assume at once control of the departments of customs and excise, posts and telegraphs, military and naval defence, ocean lights and quarantine; and, until other provision is made by Parliament, to appoint and remove all other officers of the Government.