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§ 379. “The Proportion of the State, According to the Number of its People.”

This proportion (see Notes, § 376, supra) is not very clearly defined. It is submitted, however (1) that the people of New South Wales will not include the residents in the federal territory (secs. 52—i. and 125); (2) that the second term of the proportion is the population of the whole Commonwealth, inclusive of the residents in federal territory. This means that the debit against each State will be in the proportion which its people bears to the whole population of the Commonwealth, and that no provision is made by the section for the debiting of the small share of the expenditure corresponding to the population of the federal territory—just as no provision is made for debiting the expenditure under sub-sec. 2 (a) incurred in the federal territory, or for crediting the revenue collected in the federal territory. The Federal Parliament will, however, under its exclusive power of legislation for the government of the territory (sec. 52—i. and sec. 122) have power to credit and debit these amounts to the territory, just as the Constitution does in respect of the States.

In reckoning the number of the people of a State or of the Commonwealth, aboriginal natives are not to be counted. (Sec. 127.)

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