Question

Task 1: Research and answer the following questions

1. The Australian Constitution provides for a Federal system of government. How would you explain what this means to a client?
2. One way in which the power of the Commonwealth Parliament has grown is by the referral of State law making powers. Describe an example where such a referral has been beneficial to business
3. What is the most powerful source of law in Australia? Why?
4. Why does a tax practitioner/advisor or accountant owe a duty of care to their clients?
5. What are the “Uniform Matters” that are set out in the Civil Liabilities Act in regard to establishing the standard of care in a particular situation?
6. Give an example of pure economic loss.

Answer 1

1. The Australian Constitution of 1901 established a federal system of state . Under this method, powers are distributed between a national government (the Commonwealth) and also the six States (The capital of Australia Territory and the Northern Territory have self-government arrangements).

2. Example: De facto relationships
The Australian Constitution gives the law making power to the Commonwealth over marriage (Section 51(xxi)) and matrimonial causes (Section 51xxii)). The Australian Commonwealth created the domestic relations court of Australia as a specialist court handling divorce, including custody of kids. However, the custody of kids born outside of a wedding was outside of the Commonwealth’s jurisdiction. As a result, proceedings of these matters had to be done in non-specialist state courts.
Between 1986 and 1990 all states, apart from Western Australia , referred the custody, maintenance, and access of ex-nuptial children to the Commonwealth. This referral excluded child welfare matters. Given that abuse of kids is usually a matter of contention in family law cases that reach litigation, this limitation is vital in this it establishes a split system and creates bureaucratic hurdles. The referral also didn't check with property matters arising at the end of de facto relationships. As a result, maintenance orders are made within the family court and property settlements in state courts, although the matters could also be inter-related. In 2003 Queensland, Victoria and New South Wales referred the financial settlements to Commonwealth. However, the problem remains unresolved in respect to other states.
Western Australia has not transferred powers, and has its own specialist court, the family court of Western Australia.

3. The dominant source is the parliament, where elected politicians make the laws. Judges can also make laws through their decisions in court cases. Local councils and public servants also make, control and administer the laws.

4. Accountant responsibility is that the ethical responsibility an accountant must those that have confidence his or her work. According to the(AICPA- American Institute of Certified Public Accountants ), accountants have a obligation to serve the general public interest and keep the general public trust within the profession. An accountant has responsibility to his clients, his company's managers, investors, and creditors, also on outside regulatory bodies. Accountants are accountable for the validity of the financial statements they work on, and that they must perform their duties following all applicable principles, standards, and laws.

5. What are the “Uniform Matters” that are set out in the Civil Liabilities Act in regard to establishing the standard of care in a particular situation?

(a) The probability that the harm would occur if care weren't taken.
(b) The likely seriousness of the harm.
(c) The burden of taking precautions to avoid the danger of harm.
(d) The social utility of the activity that makes the danger of harm.

6. Examples of pure economic loss include the following:

Loss of income suffered by a family whose main earner dies in an accident. The physical injury is caused to the deceased, not the family but the pure economic loss is caused to the family.

Another example is : Loss of market price of a property because of the inadequate specifications of foundations by an architect.