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Ever since its establishment by the Australian Constitution in 1901 the High Court of Australia has had a huge impact on the operation of both the political and legal systems in Australia. The Australian political and legal system has been impacted through different means. I will assess, the impact of High Court decision on the operation of the Australian Federal system and its consequences on the Federal balance, and also the impact of the Commonwealth State relations. The impact the High Court has on the Australian legal system, Assess the Legalist versus Activist debate and also Assess the concerns about the effect of political appointment to the High Court. There have been many cases in the High Court which have Financially effected the federal balance. The Federal balance is essentially, the relationship between the commonwealth and the States regarding constitutional change since 1901, much of this due to the High Court interpretation of the Constitution seen through cases such as Federal Roads Case(1926), First Uniform Tax Case (1942), and Hammond Case (1997). Cases such as these have given more power to the Commonwealth and hence in some cases also changed the vertical fiscal imbalance. In 1926 the Federal Roads Case ef