Why was New South Wales premier Jack Lang dismissed in 1932?

New South Wales Premier Jack Lang was dismissed by Governor Sir Philip Game in May 1932 due to a direct confrontation with the federal government over economic policy during the Great Depression.12

The crisis escalated when Lang, who had previously threatened to repudiate overseas debt payments, rejected a new federal statute that required state revenues to be paid to the Commonwealth. In defiance of this law, Lang issued instructions forbidding government departments from handing over state funds to the federal government.12

This act of insubordination, combined with his earlier refusal to pay interest on overseas loans and the resulting political instability—which included the rise of the semi-militaristic New Guard movement—led the governor to remove him from office.12