Twomey, Anne --- "Federal Limitations on the Legislative Power of the States and the Commonwealth to Bind one another" [2003] FedLawRw 20; (2003) 31(3) Federal Law Review 507
[*] BA/LLB (Hons) (Melb), LLM (Pub Law) (ANU). This article is a revised version of a paper given at the Public Law Weekend at the Australian National University in 2002.
[1] Attorney-General v De Keyser's Royal Hotel Ltd [1920] UKHL 1; [1920] AC 508.
[2] See, eg, Administrative Decisions (Judicial Review) Act 1977 (Cth); Administrative Decisions Tribunal Act 1997 (NSW).
[3] Austin v Commonwealth (2003) 195 ALR 321 ('Austin').
[4] Melbourne Corporation v Commonwealth [1947] HCA 26; (1947) 74 CLR 31 ('Melbourne Corporation').
[5] Commonwealth v Cigamatic Pty Ltd (In Liquidation) [1962] HCA 40; (1962) 108 CLR 372 ('Cigamatic').
[6] D'Emden v Pedder [1904] HCA 1; (1904) 1 CLR 91; Federated Amalgamated Government Railway and Tramway Service Association v New South Wales Traffic Employees Association [1906] HCA 94; (1906) 4 CLR 488.
[7] Amalgamated Society of Engineers v Adelaide Steamship Co Ltd [1920] HCA 54; (1920) 28 CLR 129, 155 (Knox CJ, Isaacs, Rich and Starke JJ) ('Engineers' Case').
[8] Ibid 143–4, 156–7 (Knox CJ, Isaacs, Rich and Starke JJ). See also Australian Railways Union v Victorian Railways Commissioners [1930] HCA 52; (1930) 44 CLR 319, 390 (Dixon J commenting on these exceptions).
[9] See, eg, Victoria v Australian Building Construction Employees' and Builders Labourers' Federation [1982] HCA 31; (1982) 152 CLR 25, 92–3 (Mason J); Commonwealth v Tasmania [1983] HCA 21; (1983) 158 CLR 1, 140–1 (Mason J), 215 (Brennan J) ('Tasmanian Dams Case'), and the cases discussed therein.
[10] [1947] HCA 26; (1947) 74 CLR 31.
[11] Ibid 81, 83 (Dixon J), 66 (Rich J), 74–5 (Starke J), 99 (Williams J).
[12] Ibid 79.
[13] Ibid 75.
[14] Ibid 66.
[15] Ibid 99. Note, however, that his Honour then dealt with the issue as one of characterization.
[16] Ibid 61.
[17] Ibid 75. See also Queensland Electricity Commission v Commonwealth [1985] HCa 56; (1985) 159 CLR 192, 247 (Deane J) ('Queensland Electricity Commission'). Note, however, Aboriginal Legal Service of Western Australia v Western Australia (1993) 9 WAR 297, 319–20 (Nicholson J) where his Honour observed that it does not apply to resolutions of a House of the Parliament, as these are not exercises of legislative or executive power.
[18] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 66.
[19] Ibid 99.
[20] Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353, 424 (Gibbs J), 391–2 (Menzies J), 410–11 (Walsh J); Victoria v Australian Building Construction Employees' and Builders Labourers' Federation [1982] HCA 31; (1982) 152 CLR 25, 93 (Mason J); Koowarta v Bjelke-Petersen [1982] HCA 27; (1982) 153 CLR 168, 191–2 (Gibbs CJ), 216 (Stephen J), 225–6 (Mason J); R v Coldham; Ex parte Australian Social Welfare Union [1983] HCA 19; (1983) 153 CLR 297, 313 (the Court); Tasmanian Dams Case [1983] HCA 21; (1983) 158 CLR 1, 139–41 (Mason J), 169 (Murphy J), 214–15 (Brennan J), 281 (Deane J); Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 206–7 (Gibbs CJ), 217 (Mason J), 226–7 (Wilson J), 231–3 (Brennan J), 245–9 (Deane J), 259–62 (Dawson J); Australian Capital Television Pty Ltd v Commonwealth [1992] HCA 45; (1992) 177 CLR 106, 163–4 (Brennan J), 199–202 (Dawson J), 241–5 (McHugh J); Re Australian Education Union; Ex parte Victoria [1995] HCA 71; (1995) 184 CLR 188, 228–33 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ).
[21] Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 217 (Mason J); quoted with approval in Re Australian Education Union; Ex parte Victoria [1995] HCA 71; (1995) 184 CLR 188, 231 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ) ('Australian Education Union Case').
[22] Austin (2003) 195 ALR 321.
[23] [1985] HCa 56; (1985) 159 CLR 192, 217 (Mason J), 235–6 (Brennan J), 247 (Deane J), 262 (Dawson J).
[24] Re Australian Education Union; Ex parte Victoria [1995] HCA 71; (1995) 184 CLR 188, 240 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ); Victoria v Commonwealth (1996) 187 CLR 416, 500 (Brennan CJ, Toohey, Gaudron, McHugh, Gummow JJ).
[25] Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 217 (Mason J).
[26] Ibid 226 (Wilson J).
[27] Tasmanian Dams Case [1983] HCA 21; (1983) 158 CLR 1, 139.
[28] Ibid.
[29] Australian Education Union Case [1995] HCA 71; (1995) 184 CLR 188, 232 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ). See, however, Dawson J at 249–50, where his Honour points out the artificiality of the argument.
[30] The other members of the Court did not address this issue as they resolved the case on grounds of statutory construction.
[31] Solomons v District Court of New South Wales [2002] HCA 47; (2002) 211 CLR 119, 167 [134].
[32] Ibid 168–9 [137] (Kirby J). See also Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 52–3 (Latham CJ).
[33] Austin (2003) 195 ALR 321, 331–2 [24] (Gleeson CJ), 357 [124] (Gaudron, Gummow and Hayne JJ), 399 [281] (Kirby J dissenting).
[34] Ibid 383 [223].
[35] Ibid 383 [224] (citations omitted).
[36] Ibid 357 [123].
[37] Ibid 357 [124].
[38] Ibid 364 [143] Gaudron, Gummow and Hayne JJ. See also at 366 [148] where their Honours described the test in this particular case as whether the laws 'restrict or control the states... in respect of the working of the judicial branch of the state government'.
[39] Tasmanian Dam Case [1983] HCA 21; (1983) 158 CLR 1, 139. See also 213–15 (Brennan J).
[40] Austin (2003) 195 ALR 321, 365 [146] (Gaudron, Gummow and Hayne JJ).
[41] The Commonwealth applied the tax to the judges directly, rather than the pension fund, because it was concerned that otherwise it would breach s 114 of the Commonwealth Constitution by taxing the property of the State.
[42] The tax was more burdensome for judges, because it was not taken from an existing fund, but rather imposed upfront on judges who had not yet received such amounts by way of their pension.
[43] Austin (2003) 195 ALR 321, 366 [152].
[44] Ibid 368–9 [161]–[162].
[45] Ibid 332 [24].
[46] Ibid 333 [28].
[47] Ibid.
[48] Ibid.
[49] Ibid 399 [281].
[50] Ibid 403 [294].
[51] Ibid 400 [283].
[52] Ibid 401 [290].
[53] Ibid 404 [299].
[54] Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 207 (Gibbs CJ), 217 (Mason J), 232 (Brennan J); Koowarta v Bjelke-Petersen [1982] HCA 27; (1982) 153 CLR 168, 216 (Stephen J). See also Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 75 (Starke J), 79 (Dixon J), where their Honours also referred to the exercise of 'constitutional powers'.
[55] Austin (2003) 195 ALR 321, 364 [143], 366 [148] (Gaudron, Gummow, Hayne JJ). See also at 384 [228] (McHugh J), 400 [284] (Kirby J).
[56] [1992] HCA 45; (1992) 177 CLR 106.
[57] Ibid 163.
[58] Ibid 242.
[59] Ibid 244; cf at 199–202 (Dawson J), where his Honour rejected the application of the implied prohibition in this case.
[60] A v Hayden [1984] HCA 67; (1984) 156 CLR 532, 540 (Gibbs CJ), 550 (Mason J), 562 (Murphy J), 580 (Brennan J), 592 (Deane J); Plenty v Dillon [1991] HCA 5; (1991) 171 CLR 635, 639 (Mason CJ, Brennan and Toohey JJ); Coco v Newnham (1997) 97 ALR 419, 455 (Lee J); Re Residential Tenancies Tribunal (NSW); Ex parte Defence Housing Authority (1997) 190 CLR 410, 427–8 (Brennan CJ), 444 (Dawson, Toohey and Gaudron JJ) ; Egan v Chadwick [1999] NSWCA 176; (1999) 46 NSWLR 563, 592 (Priestly JA).
[61] Pirrie v McFarlane [1925] HCA 30; (1925) 36 CLR 170, approved in Re Residential Tenancies Tribunal (NSW); Ex parte Defence Housing Authority (1997) 190 CLR 410, 428 (Brennan CJ), 444 (Dawson, Toohey and Gaudron JJ).
[62] Commonwealth v Western Australia (1999) 196 CLR 392, 409 [33] (Gleeson CJ and Gaudron J); Bass v Permanent Trustee Co Ltd [1999] HCA 9; (1999) 198 CLR 334, 346–7 [17]–[18] (Gleeson CJ, Gaudron, McHugh, Gummow, Hayne and Callinan JJ).
[63] Bropho v Western Australia [1990] HCA 24; (1990) 171 CLR 1, 19–22 (Mason CJ, Deane, Dawson, Toohey, Gaudron and McHugh JJ).
[64] Jacobsen v Rogers [1995] HCA 6; (1995) 182 CLR 572, 585 (Mason CJ, Deane, Dawson, Toohey and Gaudron JJ).
[65] Powell v Apollo Candle Co Ltd (1885) 10 AC 282, 289; Clayton v Heffron [1960] HCA 92; (1960) 105 CLR 214, 250 (Dixon CJ, McTiernan, Taylor and Windeyer JJ); Union Steamship Co of Australia Pty Ltd v King [1988] HCA 55; (1988) 166 CLR 1, 9(the Court). See also now: Australia Acts 1986 (UK and Cth) s 2.
[66] See, eg, Constitution ss 52, 90, 114. Note that Imperial limitations were removed by the Australia Acts 1986 (UK and Cth).
[67] Clayton v Heffron [1960] HCA 92; (1960) 105 CLR 214, 250 (Dixon CJ, McTiernan, Taylor and Windeyer JJ); Building Construction Employees and Builders' Labourers Federation of NSW v Minister for Industrial Relations (1986) 7 NSWLR 372, 408 (Mahoney JA); Union Steamship Co of Australia Pty Ltd v King [1988] HCA 55; (1988) 166 CLR 1, 12–14; Kable v DPP (NSW) [1996] HCA 24; (1996) 189 CLR 51, 66 (Brennan CJ), 76 (Dawson J).
[68] Cigamatic [1962] HCA 40; (1962) 108 CLR 372. Note, however, the earlier dissenting judgment of Dixon J in In re Foreman & Sons Pty Ltd; Uther v Federal Commissioner of Taxation [1947] HCA 45; (1947) 74 CLR 508 ('Uther's Case'), where the reasoning is better explained.
[69] Re Residential Tenancies Tribunal (NSW); Ex parte Defence Housing Authority (1997) 190 CLR 410 ('Re Residential Tenancies Tribunal').
[70] Ibid 424, Brennan CJ defined 'capacities and functions' as meaning 'the rights, powers, privileges and immunities which are collectively described as the "executive power of the Commonwealth" in s 61 of the Constitution'; Dawson, Toohey and Gaudron JJ defined 'capacities of the Crown' as meaning 'its rights, powers, privileges and immunities': 438.
[71] Some Justices would say that the law does not 'bind' the Commonwealth but rather 'affects' it by regulating transactions that it enters into: Commonwealth v Bogle [1953] HCA 10; (1953) 89 CLR 229, 259 (Fullagar J), referring to Federal Commissioner of Taxation v Official Liquidator of E O Farley Ltd [1940] HCA 13; (1940) 63 CLR 278, 308 (Dixon J); Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 528 (Dixon J). See also Re Residential Tenancies Tribunal (1997) 190 CLR 410, 473 (Gummow J). The distinction, however, is far from satisfactory.
[72] Pirrie v McFarlane [1925] HCA 30; (1925) 36 CLR 170; Re Residential Tenancies Tribunal (1997) 190 CLR 410, 427 (Brennan CJ), 439 (Dawson, Toohey, Gaudron JJ).
[73] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 424 (Brennan CJ), 439 (Dawson, Toohey and Gaudron JJ). Note, however, the rejection at 454–5 (McHugh J), 472 (Gummow J), 505 (Kirby J) of any meaningful distinction between the capacities of the Commonwealth and their exercise.
[74] Ibid 452–3 (McHugh J), 469–70 (Gummow J).
[75] Ibid 451, 454 (McHugh J), 464 (Gummow J).
[76] Ibid 453 (McHugh J).
[77] Ibid 454.
[78] However, as his Honour was prepared to criticize the majority's analysis as to the distinction between the capacities of the Commonwealth and their exercise, it may be assumed that he would have criticized the aspects of the Cigamatic doctrine he decided to record, if he now disagreed with them. Note, in contrast, His Honour's earlier views in R P Meagher and W M C Gummow, 'Sir Owen Dixon's Heresy' (1980) 54 Australian Law Journal 25.
[79] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 473.
[80] Commonwealth v Western Australia (1999) 196 CLR 392, 421 [78]. Note, that although McHugh J was disagreeing with Hayne J's application of the Cigamatic doctrine, Hayne J also noted at 471 [230] that 'it may well be that there is still room for doubt' about the Cigamatic doctrine.
[81] SGH Ltd v Commissioner of Taxation [2002] HCA 18; (2002) 76 ALJR 780, 790 [52].
[82] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 509.
[83] Ibid 502.
[84] Ibid 504–5.
[85] Ibid 505.
[86] See, eg, Phillips v Eyre (1870) LR 6 QB 1, 20 (Willes J); Macleod v A-G (NSW) [1891] AC 455, 457 (Lord Halsbury LC); Ray v M'Mackin [1875] VicLawRp 112; (1875) 1 VLR (L) 274, 280 (Barry J).
[87] Croft v Dunphy [1933] AC 156, 163.
[88] Broken Hill South Ltd v Commissioner of Taxation (NSW) [1937] HCA 4; (1937) 56 CLR 337, 375.
[89] Myer Emporium Ltd v Commissioner for Stamp Duties (1967) 68 SR (NSW) 220.
[90] Pearce v Florenca [1976] HCA 26; (1976) 135 CLR 507, 519.
[91] Ibid 517.
[92] Ibid 518. See also Union Steamship Co of Australia Pty Ltd v King [1988] HCA 55; (1988) 166 CLR 1, 14 (the Court); Port MacDonnell Professional Fishermen's Association Inc v South Australia [1989] HCA 49; (1989) 168 CLR 340, 374 (the Court); Mobil Oil Australia Pty Ltd v Victoria [2002] HCA 27; (2002) 211 CLR 1, 22–3 [9] (Gleeson CJ), 34 [48] (Gaudron, Gummow and Hayne JJ), cf 82 [189] (Callinan J dissenting), where his Honour noted that the above cases did not involve equal competing connections.
[93] Union Steamship Co of Australia Pty Ltd v King [1988] HCA 55; (1988) 166 CLR 1, 14. See also Port Macdonnell Professional Fishermen's Association Inc v South Australia [1989] HCA 49; (1989) 168 CLR 340, 372–3, where a connection between the State and the activities the subject of the law was still required by the Court; and State Authorities Superannuation Board v Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253, 271 (Brennan CJ, Dawson, Toohey, Gaudron JJ).
[94] Brownlie v State Pollution Control Commission (1992) 27 NSWLR 78, 87–8 (Gleeson CJ).
[95] Public Curator of Queensland v Morris (1951) 51 SR (NSW) 402.
[96] Mobil Oil Australia Pty Ltd v Victoria [2002] HCA 27; (2002) 76 ALJR 926, 931 [15] (Gleeson CJ).
[97] [1996] HCA 32; (1996) 189 CLR 253, 288.
[98] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 451.
[99] Essendon Corporation v Criterion Theatres Ltd [1947] HCA 15; (1947) 74 CLR 1, 22.
[100] Ibid.
[101] Bevelon Investments Pty Ltd v City of Melbourne [1976] HCA 49; (1976) 135 CLR 530, 536–7 (Barwick CJ), 539 (Gibbs J), 545 (Stephen and Mason JJ), 549 (Jacobs J), 551 (Murphy J).
[102] Australian Coastal Shipping Commission v O'Reilly [1962] HCA 8; (1962) 107 CLR 46, 54–6 (Dixon CJ) (Kitto (at 61), Taylor (at 61) and Owen JJ (at 71) agreeing). The legislative power supporting such legislation was s 51(i) with s 98.
[103] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 670 (Latham CJ). See also Starke J, 678. Note that reliance was not placed upon s 51(ii) to support such legislation, but rather the power of the Commonwealth to legislate in relation to Commonwealth salaries under ss 52(ii) and 51(xxxix). However, Evatt J considered at 684–5 that the Commonwealth has no power to grant its officers immunity from non-discriminatory State taxation legislation.
[104] Commonwealth v Queensland [1920] HCA 79; (1920) 29 CLR 1. The legislative power relied upon was s 51(iv).
[105] See Gazzo v Comptroller of Stamps (Vic) [1981] HCA 73; (1981) 149 CLR 227, and the discussion of the case in Leslie Zines, The High Court and the Constitution ( 4th ed, 1997) 343–6.
[106] Municipal Council of Sydney v Commonwealth [1904] HCA 50; (1904) 1 CLR 208, 232 (Griffith CJ); West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 686 (Evatt J); Victoria v Commonwealth [1957] HCA 54; (1957) 99 CLR 575, 614 (Dixon CJ); cf Hematite Petroleum Pty Ltd v Victoria [1983] HCA 23; (1983) 151 CLR 599, 637 (Murphy J).
[107] Solomons v District Court of New South Wales [2002] HCA 47; (2002) , 211 CLR 119 168–9 [137] (Kirby J). See also Zines, above n 105, 345.
[108] Zines, above n 105, 348.
[109] Austin (2003) 195 ALR 321, 331–2 [24] (Gleeson CJ), 364 [143] (Gaudron, Gummow and Hayne JJ).
[110] Municipal Council of Sydney v Commonwealth [1904] HCA 50; (1904) 1 CLR 208, 232 (Griffith CJ).
[111] Ibid; Carter v Egg and Egg Pulp Marketing Board (Vic) [1942] HCA 30; (1942) 66 CLR 557, 595 (Williams J).
[112] [1979] HCA 34; (1979) 145 CLR 330, 357 (Mason J), 357 (Murphy J).
[113] Note, however, that consent was not express, but inferred from the terms of the Commonwealth legislation, which immunized the Trust from certain State taxes, but impliedly did not do so in relation to others, which were to be paid out of its funds.
[114] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 669 (Latham CJ). Note, however, that this case was determined prior to Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, and that the approach taken by the judges may have been different if it were decided after the Melbourne Corporation Case.
[115] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 681 (Dixon J).
[116] Ibid 687 (Evatt J).
[117] SGH Ltd v Commissioner of Taxation [2002] HCA 18; (2002) 76 ALJR 780, 789 [46] (Gummow J).
[118] A-G (NSW) v Collector of Customs for NSW [1908] HCA 28; (1908) 5 CLR 818; Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353.
[119] Queensland v Commonwealth [1987] HCA 2; (1987) 162 CLR 74, 98 (Mason CJ, Brennan and Deane JJ), 104 (Dawson J).
[120] A-G (Qld) v A-G (Cth) [1915] HCA 39; (1915) 20 CLR 148; Osborne v Commonwealth [1911] HCA 19; (1911) 12 CLR 321.
[121] South Australia v Commonwealth [1992] HCA 7; (1992) 174 CLR 235, 252–3 (Mason CJ, Deane, Toohey and Gaudron JJ), 260 (Dawson J).
[122] Queensland v Commonwealth [1987] HCA 2; (1987) 162 CLR 74, 98 (Mason CJ, Brennan and Deane JJ), 105 (Dawson J).
[123] South Australia v Commonwealth [1992] HCA 7; (1992) 174 CLR 235, 254 (Mason CJ, Deane, Toohey and Gaudron JJ), 255 (Brennan and McHugh JJ), 258 (Dawson J).
[124] Austin (2003) 195 ALR 321, 327 [16] (Gleeson CJ).
[125] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 669 (Latham CJ), 687 (Evatt J).
[126] Ibid 687 (Evatt J).
[127] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 669 (Latham CJ); Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353, 403 (Windeyer J).
[128] Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353, 391–2 (Menzies J), 404 (Windeyer J), 410–11 (Walsh J), 424 (Gibbs J); Austin (2003) 195 ALR 321, 364 [142] (Gaudron, Gummow and Hayne JJ).
[129] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 81.
[130] State Authorities Superannuation Board v Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253, 288; see also SGH Ltd v Commissioner of Taxation [2002] HCA 18; (2002) 76 ALJR 780, [45] (Gummow J).
[131] Millar v Commissioner of Stamp Duties [1932] HCA 63; (1932) 48 CLR 618; Broken Hill South Ltd v Commissioner of Taxation (NSW) [1937] HCA 4; (1937) 56 CLR 337; Myer Emporium Ltd v Commissioner for Stamp Duties (NSW) (1967) 68 SR (NSW) 220; Johnson v Commissioner of Stamp Duties (NSW) [1956] AC 331; Ex parte Iskra [1963] SR (NSW) 538; O'Sullivan v Dejneko [1964] HCA 13; (1964) 110 CLR 498; Welker v Hewett [1969] HCA 53; (1969) 120 CLR 503; Cox v Tomat [1972] HCA 10; (1971) 126 CLR 105.
[132] Broken Hill South Ltd v Commissioner of Taxation (NSW) [1937] HCA 4; (1937) 56 CLR 337, 356 (Latham CJ).
[133] Welker v Hewett [1969] HCA 53; (1969) 120 CLR 503, 512 (Kitto J).
[134] State Authorities Superannuation Board v Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253, 288 (McHugh and Gummow JJ), referring to the statement of Starke J in Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 74.
[135] State Authorities Superannuation Board v Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253, 288–9.
[136] Municipal Council of Sydney v Commonwealth [1904] HCA 50; (1904) 1 CLR 208.
[137] See clause 17 of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, set out in A New Tax System (Commonwealth – State Financial Arrangements) Act 1999 (Cth) sch 2.
[138] Local Government (Financial Assistance) Act 1995 (Cth) s 15 (aa). See also A New Tax System (Commonwealth – State Financial Arrangements) Act 1999 (Cth), sch 2, clause 18.
[139] Zines, above n 105, 348.
[140] Ha v New South Wales [1997] HCA 34; (1997) 189 CLR 465 ('Ha').
[141] As noted above, s 51(ii) has been confined in its application to laws with respect to Commonwealth taxation, not taxation generally: Municipal Council of Sydney v Commonwealth [1904] HCA 50; (1904) 1 CLR 208, 232 (Griffith CJ); West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 686 (Evatt J); Victoria v Commonwealth [1957] HCA 54; (1957) 99 CLR 575, 614 (Dixon CJ). Cf Hematite Petroleum Pty Ltd v Victoria [1983] HCA 23; (1983) 151 CLR 599, 637 (Murphy J).
[142] If it were a State tax, it would breach the prohibition in s 90 of the Commonwealth Constitution. There was also a concern that the response to Ha would be seen as a 'scheme' that was, in its overall effect, constitutionally invalid: W R Moran Pty Ltd v Deputy Commissioner of Taxation for New South Wales [1940] AC 838; or an unconstitutional attempt to achieve indirectly that which could not be achieved directly: Antill Ranger & Co Pty Ltd v Commissioner for Motor Transport [1955] HCA 25; (1955) 93 CLR 83.
[143] The additional customs duty was avoided by tobacco companies moving very large quantities of tobacco out of bond store during this period. For example, the Annual Report 1998 of Rothmans Holdings Ltd, noted gains resulting from the clearance of goods from bond store, and recorded that 'these gains, together with associated transactions affected by the High Court decision, resulted in an abnormal pre tax accounting profit of $74,591,000 or $47,738,000 after tax'. This amount would have also presumably included profit resulting from the failure to pay State franchise fees immediately before the High Court's judgment was handed down. This is the subject of ongoing litigation.
[144] Commonwealth Treasurer, 'Constitutional Invalidation of State Business Franchise Fees: Temporary Commonwealth Safety Net Arrangements' (Press Release, 6 August 1997).
[145] Budget Paper No 1, 2002–03, 11–13. See discussion in Owen Covick, 'The 2002–03 Commonwealth Budget', Economic Issues No 4, South Australian Centre for Economic Studies, 10.
[146] Ibid 11–12; Mark Davis, 'Budget Honesty Undermined', Australian Financial Review (Sydney), 30 August 2000, 21.
[147] See the analysis by John Edwards, the Chief Economist with HSBC Bank, that shows that if the GST figures are put back into the Commonwealth budget it shows that taxation as a share of GDP has gone up during the period Mr Costello has been Treasurer. Edwards also notes that 'Costello not only takes the GST off taxes but also takes the equivalent payments to the states off spending' with the consequence that while it appears that government spending has been reduced since the GST was introduced, it has not: John Edwards, 'Spending like the rest of us', The Sydney Morning Herald (Sydney), 30 April 2003, 15.
[148] Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 529–30(Dixon J); Cigamatic [1962] HCA 40; (1962) 108 CLR 372, 377–8 (Dixon CJ); Re Residential Tenancies Tribunal (1997) 190 CLR 410, 440 (Dawson, Toohey and Gaudron JJ), 451 (McHugh J).
[149] [1920] HCA 54; (1920) 28 CLR 129. See also, John J Doyle, '1947 Revisited: The Immunity of the Commonwealth from State law' in Geoffrey Lindell (ed) Future Directions in Australian Constitutional Law (1994) 47 53–4, 57.
[150] [1920] HCA 54; (1920) 28 CLR 129, 155 (Knox CJ, Isaacs, Rich and Starke JJ).
[151] Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 530 (Dixon J).
[152] Meagher and Gummow, above n 78, 28. See also Doylea bove n 149, 62.
[153] Commonwealth v Bogle [1953] HCA 10; (1953) 89 CLR 229, 259 (Fullagar J); Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353, 379 (Barwick CJ) .
[154] Re Residential Tenancies Tribunal ( (1997) 190 CLR 410, 446 (Dawson, Toohey and Gaudron JJ), 505–6 (Kirby J). Note also Kirby J's dismissal at 506–7 of a similar argument by McHugh JA in Australian Postal Commission v Dao (1985) 3 NSWLR 565, 597. The argument related to 'representation' in Parliament, rather than 'assent'.
[155] Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 530 (Dixon J); see also, Re Residential Tenancies Tribunal (1997) 190 CLR 410, 440 (Dawson, Toohey and Gaudron JJ) .
[157] Constitution s 52. See also ss 90, 114, 115.
[158] Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 521 (Latham CJ) .
[159] [1947] HCA 45; (1947) 74 CLR 508, 530 .
[160] Fairfax v Federal Commissioner of Taxation [1965] HCA 64; (1965) 114 CLR 1, 13 (Kitto J); State Chamber of Commerce and Industry v Commonwealth [1987] HCA 38; (1987) 163 CLR 329, 354 (Mason CJ, Wilson, Dawson, Toohey and Gaudron JJ).
[161] Pearce v Florenca [1976] HCA 26; (1976) 135 CLR 507, 518 (Gibbs J). See also Union Steamship Co of Australia Pty Ltd v King [1988] HCA 55; (1988) 166 CLR 1, 14(the Court); Port MacDonnell Professional Fishermen's Association Inc v South Australia [1989] HCA 49; (1989) 168 CLR 340, 374; Kable v DPP (NSW) [1996] HCA 24; (1996) 189 CLR 51, 66 (Brennan CJ), 76 (Dawson J); Mobil Oil Australia Pty Ltd v Victoria [2002] HCA 27; (2002) 211 CLR 1, 22–3 [9] (Gleeson CJ), 34 [48] (Gaudron, Gummow and Hayne JJ).
[162] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 79 (Dixon J).
[163] Carter v Egg and Egg Pulp Marketing Board (Vic) [1942] HCA 30; (1942) 66 CLR 557, 573 (Latham CJ).
[164] Victoria v Commonwealth [1937] HCA 82; (1937) 58 CLR 618, 636–7 (Evatt J); Jacobsen v Rogers [1995] HCA 6; (1995) 182 CLR 572, 591 (Mason CJ, Deane, Dawson, Toohey and Gaudron JJ).
[165] Doyle, above, n 149, 62.
[166] Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 246 (Deane J).
[167] Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 521 (Latham CJ); Lange v Australian Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520, 564 (Brennan CJ, Dawson, Toohey, Gaudron, McHugh, Gummow and Kirby JJ); Re Residential Tenancies Tribunal (1997) 190 CLR 410, 457 (McHugh J), 473 (Gummow J). See also Sir Owen Dixon, 'The Common Law as an Ultimate Constitutional Foundation' (1957) 31 Australian Law Journal 240; Sir Owen Dixon, 'Sources of Legal Authority' reprinted in Jesting Pilate, (1965) 198.
[168] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 473 (Gummow J).
[169] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 457 (McHugh J).
[170] A v Hayden [1984] HCA 67; (1984) 156 CLR 532, 540 (Gibbs CJ), 550 (Mason J), 562 (Murphy J), 580 (Brennan J), 592 (Deane J); Plenty v Dillon [1991] HCA 5; (1991) 171 CLR 635, 639 (Mason CJ, Brennan and Toohey JJ); Coco v Newnham (1997) 97 ALR 419, 455 (Lee J); Re Residential Tenancies Tribunal (1997) 190 CLR 410, 427–8 (Brennan CJ), 444 (Dawson, Toohey and Gaudron JJ); Egan v Chadwick [1999] NSWCA 176; (1999) 46 NSWLR 563, 592 (Priestley JA).
[171] Federal Commissioner of Taxation v Official Liquidator of EO Farley Ltd [1940] HCA 13; (1940) 63 CLR 278, 308 (Dixon J); Uther's Case [1947] HCA 45; (1947) 74 CLR 508, 528 (Dixon J); Commonwealth v Bogle [1953] HCA 10; (1953) 89 CLR 229, 260 (Fullagar J); Cigamatic [1962] HCA 40; (1962) 108 CLR 372, 378 (Dixon CJ); Re Residential Tenancies Tribunal (1997) 190 CLR 410, 427 (Brennan J), 458 (Dawson, Toohey and Gaudron JJ), 458 (McHugh J), 473 (Gummow J), 507–9 (Kirby J).
[172] Federal Commissioner of Taxation v Official Liquidator of EO Farley Ltd [1940] HCA 13; (1940) 63 CLR 278, 308 (Dixon J); Commonwealth v Bogle [1953] HCA 10; (1953) 89 CLR 229, 260 (Fullagar J).
[173] Query what effect the referral of power by the States to the Commonwealth and the subsequent enactment of the Corporations Act 2001 (Cth) will have in relation to bodies incorporated now pursuant to a Commonwealth law.
[174] [1947] HCA 45; (1947) 74 CLR 508, 528. His Honour said: 'General laws made by a State may affix legal consequences to given descriptions of transactions and the Commonwealth, if it enters into such a transaction, may be bound by the rule laid down' [emphasis added]: at 528. See also Re Residential Tenancies Tribunal (1997) 190 CLR 410, 427 (Brennan CJ), who considered that the Commonwealth is 'bound' by State laws of general application, but qualified the meaning of 'bound', and Dawson, Toohey and Gaudron JJ who said that 'it is impossible to say what is meant by "affected by State laws" if it does not mean that the Crown in right of the Commonwealth is bound by them': at 447.
[175] The High Court in Cigamatic [1962] HCA 40; (1962) 108 CLR 372 held that the Commonwealth was not subject to such a law.
[176] Zines, above n 105, 358.
[177] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 426 .
[178] Ibid 427.
[179] Ibid.
[180] Ibid.
[181] Ibid 451.
[182] Ibid. See also Australian Postal Commission v Dao (1985) 3 NSWLR 565, 597 (McHugh JA) where he applied the 'enumerated powers' argument.
[183] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 457 ( McHugh J).
[184] Ibid 452; See also Australian Postal Commission v Dao (1985) 3 NSWLR 565, 597 (McHugh JA), where he supported the 'affected by' doctrine.
[185] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 455.
[186] Ibid 458.
[187] Ibid 456, 458.
[188] Note that the State law must be intended to bind the Crown in right of the Commonwealth: Bropho v Western Australia [1990] HCA 24; (1990) 171 CLR 1; Jacobsen v Rogers [1995] HCA 6; (1995) 182 CLR 572.
[189] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 455 (McHugh J).
[190] Ibid 457–8.
[191] Ibid 456–8.
[192] Note, however, that if the Commonwealth were sued upon the contract, s 64 of the Judiciary Act 1903 (Cth) would most likely have the effect of applying the State law as amended to the Commonwealth.
[193] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657.
[194] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 458.
[195] West v Commissioner of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657, 681.
[196] See the extensive criticism of such distinctions in Ex parte Professional Engineers' Association [1959] HCA 47; (1959) 107 CLR 208, 235 (Dixon CJ), 275 (Windeyer J); Victoria v Commonwealth [1971] HCA 16; (1971) 122 CLR 353, 382–3 (Barwick CJ), 398 (Windeyer J), 424 (Gibbs J); Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 214–5 (Mason J); Re Lee; Ex parte Harper [1986] HCA 30; (1986) 160 CLR 430, 452 (Mason, Brennan and Deane JJ); Re Australian Education Union; Ex parte Victoria [1995] HCA 71; (1995) 184 CLR 188, 230–1 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ).
[197] Re Residential Tenancies (1997) 190 CLR 410, Ibid 469.
[198] Ibid 472–4.
[199] Ibid 472.
[200] Ibid 473.
[201] Ibid.
[202] Meagher and Gummow, above n 78, 29.
[203] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 440.
[204] Ibid.
[205] Ibid 443–4.
[206] Ibid 446.
[207] Lower courts have had great difficulty in discerning and applying the principles. See, eg,Deputy Commissioner of Taxation v DTR Securities (1985) 1 NSWLR 653, 666 (Lee J); Australian Postal Commission v Dao (1985) 3 NSWLR 565, 593 (McHugh JA); Trade Practices Commission v Manfal (1990) 97 ALR 231, 236–9 (Wilcox J), 258 (French J); Re Commissioner of Water Resources [1991] 1 Qd R 549, 555–7 (Byrne J); Aboriginal Legal Service of Western Australia (Inc) v Western Australia (1993) 9 WAR 297, 322–3 (Nicholson J); Coco v Shaw [1994] 1 Qd R 469, 477 (McPherson SPJ); Whiteford v Commonwealth of Australia (1995) 38 NSWLR 100, 107 (Kirby P).
[208] Australian Postal Commission v Dao (1985) 3 NSWLR 565, 596–7 (McHugh JA); Whiteford v Commonwealth of Australia (1995) 38 NSWLR 100, 107 (Kirby P).
[209] Trade Practices Commission v Manfal (1990) 97 ALR 231, 240 (Wilcox J); Re Commissioner of Water Resources [1991] 1 Qd R 549, 556–7 (Byrne J); Coco v Shaw [1994] 1 Qd R 469, 477 (McPherson SPJ).
[210] Meagher and Gummow, above n 78; Doyle, above n 149, 47; Zines, above n 105, 361–6.
[211] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 504 (Dawson, Toohey and Gaudron JJ), 504 (Kirby J).
[212] Ibid 452–3 (McHugh J), 469–70 (Gummow J). See also Cigamatic [1962] HCA 40; (1962) 108 CLR 372, 378 (Dixon CJ).
[213] [1925] HCA 30; (1925) 36 CLR 170, 228 (Starke J).
[214] The express incidental power in s 51(xxxix) of the Constitution is particularly relevant here.
[215] [1984] HCA 74; (1984) 158 CLR 447, 455–8 (Gibbs CJ), 469 (Murphy J), 474–5 (Brennan J), 476–9 (Deane J).
[216] Ibid 457 (Gibbs CJ). His Honour expressly objected to the proposition that the Commonwealth could retrospectively reveal an intention to cover the field with the result that a State law would be retrospectively invalidated: at 457. Cf Murphy J where he considered that retrospective Commonwealth laws could render a State law invalid, but could not render valid what s 109 had made invalid: at 468–9.
[217] See, for example, s 79 of the Judiciary Act 1903 (Cth). The State law then applies as a federal law.
[218] See, for example, s 64 of the Judiciary Act 1903 (Cth), which was applied to laws of substance as well as procedure in Maguire v Simpson [1977] HCA 63; (1977) 139 CLR 362; Commonwealth v Evans Deakin Industries Ltd [1986] HCA 51; (1986) 161 CLR 254.
[219] See, for example, Re Residential Tenancies Tribunal (1997) 190 CLR 410; Commonwealth v Western Australia (1999) 196 CLR 392, where s 64 of the Judiciary Act 1903 (Cth) did not apply to proceedings in the Residential Tenancies Tribunal or before a mining warden; Deputy Commissioner of Taxation v Moorebank Pty Ltd [1988] HCA 29; (1988) 165 CLR 55, where s 64 did not apply because other Commonwealth legislation 'covered the field', leaving no room to import a State law. Regarding the limitations on the application of s 79 of the Judiciary Act 1902 (Cth) see Solomons v District Court (NSW) [2002] HCA 47; (2002) 211 CLR 119, 134 [23] (Gleeson CJ, Gaudron, Gummow, Hayne and Callinan JJ), 146 [60] (McHugh J); ASIC v Edensor Nominees Pty Ltd (2001) 204 CLR 559, 593–4 [72]–[74] (Gleeson CJ, Gaudron and Gummow JJ), 609–10 [129]–[130] (McHugh J); Commonwealth v Mewett (1997) 191 CLR 471, 556 (Gummow and Kirby JJ).
[220] Austral Pacific Group Ltd v Airservices Australia [2000] HCA 39; (2000) 203 CLR 136, 156–7 [57] (McHugh J) referring to Maguire v Simpson [1977] HCA 63; (1977) 139 CLR 362, 390 (Gibbs J) , 402 (Mason J), 403–4 (Jacobs J) ; Commonwealth v Evans Deakin Industries Ltd [1986] HCA 51; (1986) 161 CLR 254, 267 (Gibbs CJ, Mason, Wilson, Deane and Dawson JJ); Re Residential Tenancies Tribunal (1997) 190 CLR 410, 428 (Brennan CJ), 460(McHugh J) , 474 (Gummow J).
[221] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 61. Note, however, that in Uther's Case [1947] HCA 45; (1947) 74 CLR 508, his Honour qualified this by stating that the Melbourne Corporation principle cannot be applied in favour of the Commonwealth in the same way as to a State, because a State has no means of protecting itself against Commonwealth legislation, but the Commonwealth can protect itself from State legislation because of the application of s 109 of the Commonwealth Constitution: at 520.
[222] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 74 (citations omitted).
[223] Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 99.
[224] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 507–8 (Kirby J); Commonwealth v Western Australia (1999) 196 CLR 392, 435–6 [122]–[123] (Gummow J); Aboriginal Legal Service of Western Australia v Western Australia (1993) 9 WAR 297, 319 (Nicholson J); Coco v Shaw [1994] 1 Qd R 469, 495–6 (Ryan J); Local Government Association of Queensland (Inc) v Queensland [2001] QCA 517, [67] (Williams JA). See also, Meagher and Gummow, above n 78, 26; Zines, above n 105, 353.
[225] Cigamatic [1962] HCA 40; (1962) 108 CLR 372, 378.
[226] Re Residential Tenancies Tribunal (1997) 190 CLR 410, 425.
[227] Ibid 424–5.
[228] Ibid 440.
[229] Ibid.
[230] Ibid 443.
[231] Ibid 439. See also Francesca Dominello, 'Intergovernmental immunities and judicial reasoning' in Tony Blackshield, Michael Coper, and George Williams (eds), The Oxford Companion to the High Court of Australia (2001) 344.
[232] [1983] HCA 21; (1983) 158 CLR 1, 139 (Mason J).
[233] Austin (2003) 195 ALR 321, 364 [143], 366 [148] (Gaudron, Gummow and Hayne JJ); Queensland Electricity Commission [1985] HCa 56; (1985) 159 CLR 192, 207 (Gibbs CJ), 217 (Mason J), 232 (Brennan J); Koowarta v Bjelke-Petersen [1982] HCA 27; (1982) 153 CLR 168, 216 (Stephen J). See also, Melbourne Corporation [1947] HCA 26; (1947) 74 CLR 31, 75 (Starke J), 79 (Dixon J), where their Honours also referred to the exercise of 'constitutional powers'.
[234] Australian Capital Television Pty Ltd v Commonwealth [1992] HCA 45; (1992) 177 CLR 106, 163 (Brennan J) , 242 (McHugh J).
[235] Local Government Association of Queensland (Inc) v Queensland [2001] QCA 517, [49] (Davies JA)].
[236] Local Government Association of Queensland (Inc) v Queensland [2001] QCA 517,[48] (Davies JA)].
[237] Local Government Association of Queensland (Inc) v Queensland [2001] QCA 517, [70] (Williams JA)]. McMurdo P held at [12] that the law was beyond the competence of the Queensland legislature because the Commonwealth has exclusive legislative power in relation to Commonwealth elections. The whole Court also held that the law was invalid because of inconsistency under s 109 of the Commonwealth Constitution.
[238] Compare the view of McHugh J in Street v Queensland Bar Association [1989] HCA 53; (1989) 168 CLR 461, 583, where his Honour noted that 'some subject-matters are the concern only of the people of each State' and that these include 'the qualifications and conditions for holding public office in the State', which would presumably include conditions for holding the office of local councillor.
[239] (2003) 195 ALR 321. See the discussion on this case above.