Why was Premier Jack Lang dismissed by Governor Sir Philip Game in 1932?

Premier Jack Lang was dismissed by Governor Sir Philip Game in May 1932 due to a direct constitutional and political confrontation regarding state finances during the Great Depression.12

The crisis reached a breaking point when Lang, who had previously threatened to repudiate overseas debt payments, issued instructions forbidding New South Wales government departments from handing over state revenue to the Commonwealth government. This action was taken in defiance of a new federal statute that required such payments to be made to the commonwealth to cover interest on overseas loans.12

Governor Game viewed this refusal to comply with federal law as an untenable breach of the law, leading him to exercise his vice-regal power to dismiss the premier. This event occurred against a backdrop of intense political instability, which included clashes with the federal government and the rise of the semi-militaristic New Guard movement, which opposed Lang’s economic policies.12