The News Ltd papers are reporting the bizarre assertion that Australia may be facing a constitutional crisis (see the bullet point at the top of this story, Julia Gillard cops historic blow with ‘$317m act of irresponsibility’):

The Gillard government will call on the Governor-General to strike out the Coalition attempt to impose a $317 million hit on the budget bottom line.

In a surprise Senate defeat today, the opposition banded together with independent senators to pass a bill to improve country students’ access to youth allowance.

The government has declared the bill unconstitutional, saying only it can make budget appropriations from the Senate.

Also see:

Government accused of using G-G as human shield in constitutional row

The media is presenting this as a legitimate difference in views on the constitutionality of the bill, as if there is a debate. There isn’t, as the Government is absolutely correct the bill is unconstitutional. From the parliamentary website:

The powers of the two Houses to initiate and amend bills are identical except in relation to bills that impose taxation or appropriate money. Section 53 of the Constitution provides that such bills may originate only in the House of Representatives.

Case closed. The bill will fail.