AU key terms

The set of fundamental rules that establishes the structure of a government, defines its powers, and sets limits on those powers. In Australia, it is a written document that can only be changed by referendum.

A system of government where power is divided between a central national government and regional governments, each with its own areas of responsibility. Australia uses this system with the Commonwealth and state governments.

The principle that the legislative, executive, and judicial functions of government should be held by separate bodies to prevent concentration of power. Australia reflects this partly, though executive and legislative roles overlap.

Law developed by judges through decisions in court cases, rather than by parliament through legislation. It is based on precedent and evolves as courts decide new disputes.

A legal rule that a court must follow a decision made by a higher court in a similar earlier case. It provides consistency and predictability in how the law is applied.

Law made by parliament through legislation, also called an Act. It takes precedence over common law when there is a conflict between them.

The elected body that makes laws. In Australia, the federal Parliament consists of the King (represented by the Governor-General), the Senate, and the House of Representatives.

The highest court in the Australian judicial system. It hears appeals from lower courts and interprets the Constitution, and its decisions are binding on all other Australian courts.

The representative of the King in Australia at the federal level. The role is largely ceremonial, but the Governor-General formally assents to legislation and appoints ministers.

The convention that government ministers are accountable to parliament for the actions of their departments and must resign if serious failures occur. It is a key feature of responsible government.

The principle that everyone, including the government, is subject to the law and must obey it. It requires laws to be clear, applied equally, and enforced through independent courts.

The power of courts to examine decisions made by government bodies and declare them invalid if they exceed legal authority or violate legal requirements. It ensures government action stays within the law.

Rules or regulations made by a person or body to whom parliament has delegated law-making authority, such as a minister or agency. It allows detailed rules to be made without new Acts.

The legal reasoning or principle that a court relies on to reach its decision in a case. It is the binding part of a judgment that lower courts must follow in similar cases.

A remark or opinion expressed by a judge in a judgment that is not essential to the decision. It is not binding but may be persuasive in future cases.

The main Australian law that governs companies, including their registration, management, directors' duties, financial reporting, and insolvency. It is administered by ASIC.

The Australian Securities and Investments Commission. It is the government regulator responsible for enforcing company law, protecting consumers in financial services, and maintaining market integrity.

The Australian Competition and Consumer Commission. It is the regulator that enforces competition law and consumer protection law, including prohibitions on misleading conduct and anti-competitive behaviour.

A legal obligation that company directors must act in good faith, in the best interests of the company, and for a proper purpose. They must also avoid conflicts of interest and exercise care and diligence.

A person or entity that owns shares in a company. Shareholders have rights such as voting at general meetings and receiving dividends, but they are not personally liable for company debts.

The state of being unable to pay debts when they fall due. A company that is insolvent may be placed into administration or liquidation to deal with its creditors.

A legally enforceable agreement between two or more parties. It requires an offer, acceptance, consideration, intention to create legal relations, and capacity, and it may be written or oral.

Something of value that each party gives in exchange for the other party's promise in a contract. It is a required element for a contract to be legally binding.

The process by which one party proposes terms (the offer) and the other party agrees to those terms (the acceptance). Together they form the basis of a binding contract.

A statutory right under Australian consumer law that goods and services must meet certain standards, such as being fit for purpose and of acceptable quality. These guarantees cannot be excluded by contract.

The Goods and Services Tax, a broad-based tax of 10% on most goods and services sold in Australia. Businesses registered for GST collect it from customers and remit it to the tax office.

The main Australian law that sets out minimum employment standards, including wages, leave, and unfair dismissal rules. It establishes the Fair Work Commission and the Fair Work Ombudsman.

A collective agreement between an employer and employees (or their union) that sets terms and conditions of employment. It must be approved by the Fair Work Commission and cannot undercut minimum legal standards.

A business structure where one person owns and operates the business in their own name. The owner has unlimited personal liability for business debts and keeps all profits.

A business structure where two or more people carry on a business together with a view to profit. Partners typically share profits and losses and may have unlimited liability for business debts.