The Administrative Arrangements Order (AAO) stems directly from the Constitution. Section 61 of the Constitution places the executive power of the Commonwealth in The King, and provides that it is exercisable by the Governor General. Section 62 provides for the Executive Council, and section 64 provides that the Governor General may appoint Ministers of State to administer such Departments of State of the Commonwealth as the Governor General in Council establishes.
A minister appointed to administer a department of state is responsible for the performance of functions and duties and the exercise of powers relating to legislation listed in the AAO.
The Governor-General makes the AAO on the advice of the Prime Minister.
