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Historically, the Assembly's special role stemmed from its representative nature, its Members having been directly elected by the people of NSW since 1856. In contrast, the Legislative Council has only been popularly elected since 1978. Accordingly, the Legislative Assembly has some important differences from the Legislative Council:

The Government is the party that enjoys the confidence of the Legislative Assembly;

Bills to impose taxes or spend public money (called "money bills") may only be initiated in the Legislative Assembly;

The Legislative Council cannot prevent the passage of a bill for "the ordinary annual services of Government"; and

If the Legislative Council fails to pass a bill from the Legislative Assembly, that bill may become law after being agreed to by the majority of the people at a referendum.

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