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Federal Limitations on the Legislative Power of the States and the Commonwealth to Bind One Another

Published online by Cambridge University Press:  24 January 2025

Anne Twomey
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Extract

The principle that the legislature can enact laws which bind the executive is a familiar one. The prerogative can be abrogated or abolished by legislation and the decisions of the executive made subject to administrative review.

More interesting, however, is the relationship within the federation between the legislature of one polity and the executive of another. To what extent can the laws of one polity bind the executive of another, or abrogate or abolish its prerogatives?

The High Court, over the last century, has had a very difficult time in answering these questions. Fundamental though they be to our governmental system, there has never been a clear and consistent principle established to provide ready answers to them. After the centenary of federation, one would think we would understand how the polities within that federation are intended to interact, but we do not.

Type
Research Article
Information
Federal Law Review , Volume 31 , Issue 3 , September 2003 , pp. 507 - 539
Copyright
Copyright © 2003 The Australian National University

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Footnotes

*

This article is a revised version of a paper given at the Public Law Weekend at the Australian National University in 2002.

References

1 Attorney-General v De Keyser's Royal Hotel Ltd [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) 74 CLR 31 ('Melbourne Corporation').

5 Commonwealth v Cigamatic Pty Ltd (In Liquidation) (1962) 108 CLR 372 ('Cigamatic').

6 D'Emden v Pedder (1904) 1 CLR 91; Federated Amalgamated Government Railway and Tramway Service Association v New South Wales Traffic Employees Association (1906) 4 CLR 488.

7 Amalgamated Society of Engineers v Adelaide Steamship Co Ltd (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) 44 CLR 319, 390 (Dixon J commenting on these exceptions).

9 See, eg, Victoria v Australian Building Construction Employees' and Builders Labourers' Federation (1982) 152 CLR 25, 92–3 (Mason J); Commonwealth v Tasmania (1983) 158 CLR 1, 140–1 (Mason J), 215 (Brennan J) ('Tasmanian Dams Case'), and the cases discussed therein.

10 (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) 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) 74 CLR 31, 66.

19 Ibid 99.

20 Victoria v Commonwealth (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) 152 CLR 25, 93 (Mason J); Koowarta v Bjelke-Petersen (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) 153 CLR 297, 313 (the Court); Tasmanian Dams Case (1983) 158 CLR 1, 139–41 (Mason J), 169 (Murphy J), 214–15 (Brennan J), 281 (Deane J); Queensland Electricity Commission (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) 177 CLR 106, 163–4 (Brennan J), 199–202 (Dawson J), 241–5 (McHugh J); Re Australian Education Union; Ex parte Victoria (1995) 184 CLR 188, 228–33 (Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ).

21 Queensland Electricity Commission (1985) 159 CLR 192, 217 (Mason J); quoted with approval in Re Australian Education Union; Ex parte Victoria (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) 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) 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) 159 CLR 192, 217 (Mason J).

26 Ibid 226 (Wilson J).

27 Tasmanian Dams Case (1983) 158 CLR 1, 139.

28 Ibid.

29 Australian Education Union Case (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) 211 CLR 119, 167 [134].

32 Ibid 168–9 [137] (Kirby J). See also Melbourne Corporation (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) 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) 159 CLR 192, 207 (Gibbs CJ), 217 (Mason J), 232 (Brennan J); Koowarta v Bjelke-Petersen (1982) 153 CLR 168, 216 (Stephen J). See also Melbourne Corporation (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) 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) 156 CLR 532, 540 (Gibbs CJ), 550 (Mason J), 562 (Murphy J), 580 (Brennan J), 592 (Deane J); Plenty v Dillon (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) 46 NSWLR 563, 592 (Priestly JA).

61 Pirrie v McFarlane (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) 198 CLR 334, 346–7 [17]–[18] (Gleeson CJ, Gaudron, McHugh, Gummow, Hayne and Callinan JJ).

63 Bropho v Western Australia (1990) 171 CLR 1, 19–22 (Mason CJ, Deane, Dawson, Toohey, Gaudron and McHugh JJ).

64 Jacobsen v Rogers (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) 105 CLR 214, 250 (Dixon CJ, McTiernan, Taylor and Windeyer JJ); Union Steamship Co of Australia Pty Ltd v King (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) 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) 166 CLR 1, 12–14; Kable v DPP (NSW) (1996) 189 CLR 51, 66 (Brennan CJ), 76 (Dawson J).

68 Cigamatic (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) 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) 89 CLR 229, 259 (Fullagar J), referring to Federal Commissioner of Taxation v Official Liquidator of E O Farley Ltd (1940) 63 CLR 278, 308 (Dixon J); Uther's Case (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) 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 Meagher, R P Gummow, W M C, 'Sir Owen Dixon's Heresy' (1980) 54 Australian Law Journal 25Google Scholar.

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) 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) 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) 56 CLR 337, 375.

89 Myer Emporium Ltd v Commissioner for Stamp Duties (1967) 68 SR (NSW) 220.

90 Pearce v Florenca (1976) 135 CLR 507, 519.

91 Ibid 517.

92 Ibid 518. See also Union Steamship Co of Australia Pty Ltd v King (1988) 166 CLR 1, 14 (the Court); Port MacDonnell Professional Fishermen's Association Inc v South Australia (1989) 168 CLR 340, 374 (the Court); Mobil Oil Australia Pty Ltd v Victoria (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) 166 CLR 1, 14. See also Port Macdonnell Professional Fishermen's Association Inc v South Australia (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) 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) 76 ALJR 926, 931 [15] (Gleeson CJ).

97 (1996) 189 CLR 253, 288.

98 Re Residential Tenancies Tribunal (1997) 190 CLR 410, 451.

99 Essendon Corporation v Criterion Theatres Ltd (1947) 74 CLR 1, 22.

100 Ibid.

101 Bevelon Investments Pty Ltd v City of Melbourne (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) 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) 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) 29 CLR 1. The legislative power relied upon was s 51(iv).

105 See Gazzo v Comptroller of Stamps (Vic) (1981) 149 CLR 227, and the discussion of the case in Leslie, Zines, The High Court and the Constitution ( 4th ed, 1997) 343–6Google Scholar.

106 Municipal Council of Sydney v Commonwealth (1904) 1 CLR 208, 232 (Griffith CJ); West v Commissioner of Taxation (NSW) (1937) 56 CLR 657, 686 (Evatt J); Victoria v Commonwealth (1957) 99 CLR 575, 614 (Dixon CJ); cf Hematite Petroleum Pty Ltd v Victoria (1983) 151 CLR 599, 637 (Murphy J).

107 Solomons v District Court of New South Wales (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) 1 CLR 208, 232 (Griffith CJ).

111 Ibid; Carter v Egg and Egg Pulp Marketing Board (Vic) (1942) 66 CLR 557, 595 (Williams J).

112 (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) 56 CLR 657, 669 (Latham CJ). Note, however, that this case was determined prior to Melbourne Corporation (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) 56 CLR 657, 681 (Dixon J).

116 Ibid 687 (Evatt J).

117 SGH Ltd v Commissioner of Taxation (2002) 76 ALJR 780, 789 [46] (Gummow J).

118 A-G (NSW) v Collector of Customs for NSW (1908) 5 CLR 818; Victoria v Commonwealth (1971) 122 CLR 353.

119 Queensland v Commonwealth (1987) 162 CLR 74, 98 (Mason CJ, Brennan and Deane JJ), 104 (Dawson J).

120 A-G (Qld) v A-G (Cth) (1915) 20 CLR 148; Osborne v Commonwealth (1911) 12 CLR 321.

121 South Australia v Commonwealth (1992) 174 CLR 235, 252–3 (Mason CJ, Deane, Toohey and Gaudron JJ), 260 (Dawson J).

122 Queensland v Commonwealth (1987) 162 CLR 74, 98 (Mason CJ, Brennan and Deane JJ), 105 (Dawson J).

123 South Australia v Commonwealth (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) 56 CLR 657, 669 (Latham CJ), 687 (Evatt J).

126 Ibid 687 (Evatt J).

127 West v Commissioner of Taxation (NSW) (1937) 56 CLR 657, 669 (Latham CJ); Victoria v Commonwealth (1971) 122 CLR 353, 403 (Windeyer J).

128 Victoria v Commonwealth (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) 74 CLR 31, 81.

130 State Authorities Superannuation Board v Commissioner of State Taxation (WA) (1996) 189 CLR 253, 288; see also SGH Ltd v Commissioner of Taxation (2002) 76 ALJR 780, [45] (Gummow J).

131 Millar v Commissioner of Stamp Duties (1932) 48 CLR 618; Broken Hill South Ltd v Commissioner of Taxation (NSW) (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) 110 CLR 498; Welker v Hewett (1969) 120 CLR 503; Cox v Tomat (1971) 126 CLR 105.

132 Broken Hill South Ltd v Commissioner of Taxation (NSW) (1937) 56 CLR 337, 356 (Latham CJ).

133 Welker v Hewett (1969) 120 CLR 503, 512 (Kitto J).

134 State Authorities Superannuation Board v Commissioner of State Taxation (WA) (1996) 189 CLR 253, 288 (McHugh and Gummow JJ), referring to the statement of Starke J in Melbourne Corporation (1947) 74 CLR 31, 74.

135 State Authorities Superannuation Board v Commissioner of State Taxation (WA) (1996) 189 CLR 253, 288–9.

136 Municipal Council of Sydney v Commonwealth (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) 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) 1 CLR 208, 232 (Griffith CJ); West v Commissioner of Taxation (NSW) (1937) 56 CLR 657, 686 (Evatt J); Victoria v Commonwealth (1957) 99 CLR 575, 614 (Dixon CJ). Cf Hematite Petroleum Pty Ltd v Victoria (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) 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, 10Google Scholar.

146 Ibid 11–12; Mark, Davis, 'Budget Honesty Undermined', Australian Financial Review (Sydney), 30 August 2000, 21Google Scholar.

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, 15Google Scholar.

148 Uther's Case (1947) 74 CLR 508, 529–30(Dixon J); Cigamatic (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) 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, 57Google Scholar.

150 (1920) 28 CLR 129, 155 (Knox CJ, Isaacs, Rich and Starke JJ).

151 Uther's Case (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) 89 CLR 229, 259 (Fullagar J); Victoria v Commonwealth (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) 74 CLR 508, 530 (Dixon J); see also, Re Residential Tenancies Tribunal (1997) 190 CLR 410, 440 (Dawson, Toohey and Gaudron JJ) .

156 Constitution s 107.

157 Constitution s 52. See also ss 90, 114, 115.

158 Uther's Case (1947) 74 CLR 508, 521 (Latham CJ) .

159 (1947) 74 CLR 508, 530 .

160 Fairfax v Federal Commissioner of Taxation (1965) 114 CLR 1, 13 (Kitto J); State Chamber of Commerce and Industry v Commonwealth (1987) 163 CLR 329, 354 (Mason CJ, Wilson, Dawson, Toohey and Gaudron JJ).

161 Pearce v Florenca (1976) 135 CLR 507, 518 (Gibbs J). See also Union Steamship Co of Australia Pty Ltd v King (1988) 166 CLR 1, 14(the Court); Port MacDonnell Professional Fishermen's Association Inc v South Australia (1989) 168 CLR 340, 374; Kable v DPP (NSW) (1996) 189 CLR 51, 66 (Brennan CJ), 76 (Dawson J); Mobil Oil Australia Pty Ltd v Victoria (2002) 211 CLR 1, 223 [9] (Gleeson CJ), 34 [48] (Gaudron, Gummow and Hayne JJ).

162 Melbourne Corporation (1947) 74 CLR 31, 79 (Dixon J).

163 Carter v Egg and Egg Pulp Marketing Board (Vic) (1942) 66 CLR 557, 573 (Latham CJ).

164 Victoria v Commonwealth (1937) 58 CLR 618, 636–7 (Evatt J); Jacobsen v Rogers (1995) 182 CLR 572, 591 (Mason CJ, Deane, Dawson, Toohey and Gaudron JJ).

165 Doyle, above, n 149, 62.

166 Queensland Electricity Commission (1985) 159 CLR 192, 246 (Deane J).

167 Uther's Case (1947) 74 CLR 508, 521 (Latham CJ); Lange v Australian Broadcasting Corporation (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 240Google Scholar; Sir Owen, Dixon, 'Sources of Legal Authority' reprinted in Jesting Pilate, (1965) 198Google Scholar.

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) 156 CLR 532, 540 (Gibbs CJ), 550 (Mason J), 562 (Murphy J), 580 (Brennan J), 592 (Deane J); Plenty v Dillon (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) 46 NSWLR 563, 592 (Priestley JA).

171 Federal Commissioner of Taxation v Official Liquidator of EO Farley Ltd (1940) 63 CLR 278, 308 (Dixon J); Uther's Case (1947) 74 CLR 508, 528 (Dixon J); Commonwealth v Bogle (1953) 89 CLR 229, 260 (Fullagar J); Cigamatic (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) 63 CLR 278, 308 (Dixon J); Commonwealth v Bogle (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) 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) 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) 171 CLR 1; Jacobsen v Rogers (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) 56 CLR 657.

194 Re Residential Tenancies Tribunal (1997) 190 CLR 410, 458.

195 West v Commissioner of Taxation (NSW) (1937) 56 CLR 657, 681.

196 See the extensive criticism of such distinctions in Ex parte Professional Engineers' Association (1959) 107 CLR 208, 235 (Dixon CJ), 275 (Windeyer J); Victoria v Commonwealth (1971) 122 CLR 353, 382–3 (Barwick CJ), 398 (Windeyer J), 424 (Gibbs J); Queensland Electricity Commission (1985) 159 CLR 192, 214–5 (Mason J); Re Lee; Ex parte Harper (1986) 160 CLR 430,452 (Mason, Brennan and Deane JJ); Re Australian Education Union; Ex parte Victoria (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) 108 CLR 372, 378 (Dixon CJ).

213 (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) 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) 139 CLR 362; Commonwealth v Evans Deakin Industries Ltd (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) 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) 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) 203 CLR 136, 156–7 [57] (McHugh J) referring to Maguire v Simpson (1977) 139 CLR 362, 390 (Gibbs J) , 402 (Mason J), 403–4 (Jacobs J) ; Commonwealth v Evans Deakin Industries Ltd (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) 74 CLR 31, 61. Note, however, that in Uther's Case (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) 74 CLR 31, 74 (citations omitted).

223 Melbourne Corporation (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) 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, George, Williams (eds), The Oxford Companion to the High Court of Australia (2001) 344Google Scholar.

232 (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) 159 CLR 192, 207 (Gibbs CJ), 217 (Mason J), 232 (Brennan J); Koowarta v Bjelke-Petersen (1982) 153 CLR 168, 216 (Stephen J). See also, Melbourne Corporation (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) 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) 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.