There is to be a federal judiciary, consisting of a high court of Australia, and such inferior courts as Parliament may determine. The high court is to consist of a chief justice, and at least four other judges, and is to hear appeals from the state courts and inferior federal courts. This appeal is to be final, except that in matters affecting the public interests of the commonwealth or of any state, application may be made to the Queen for special leave to appeal to the Privy Council. Uniform Customs duties are to be imposed within two years of the establishment of the commonwealth, and trade and intercourse throughout the commonwealth is then to be absolutely free. In the meantime the local tariffs are to continue, but they will be collected by the Federal Government, and after deducting from the revenue received in each state the contribution of that state towards federal expenses, the balance is to be returned to the state month by month. During the first three years after federation the total annual expenditure of the Federal Government is to be limited to L300,000 for new federal expenses, and L1,250,000 for services transferred from the states. During the first five years after the imposition of a uniform tariff, the surplus revenue, after deducting the contribution of each state to the federal expenses, is to be returned to the states in the following way: Accounts of Customs and excise duties collected in each state are to be kept during the twelve months following the coming into operation of the uniform tariff, in order to ascertain, first the average net amount per head in each state, and next the {243} average per head for the whole commonweath. A sliding scale, extending over four years, is then to be adopted, in order to determine the amount to be returned. Where the average for a particular state for the first year is less than the general average, the per capita sum is to be increased by equal gradations, until, at the end of four years, it equals the general average. Similarly, where the average for a state is greater than the general average, it is to be gradually reduced to the general average. Then, at the end of the five-year period, all the states will be placed on the same footing, and will receive an equal sum per head from the federal revenue. This scheme of distribution is subject, however, to the important proviso that during the five years the aggregate amount returned to all the states in any year must not be less than the aggregate amount returned in the year immediately preceding the imposition of uniform duties.