Section 96 of the Constitution of Australia

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Chapter I: The Parliament Chapter II: The Executive Government Chapter III: The Judicature Chapter IV: Finance and Trade Chapter V: The States Chapter VI: New States Chapter VII: Miscellaneous Chapter VIII: Alteration of the Constitution
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Section 96 of the Constitution of Australia authorises the Australian (Commonwealth) Parliament to grant financial assistance to any state on the terms and conditions that it sees fit, subject to acceptance by the state(s) concerned. The expanded use of the power under section 96 has added to Australia's vertical fiscal imbalance and enabled the Commonwealth to have a significant influence over matters that would otherwise be constitutionally State responsibilities.