Tasmania v Commonwealth

Last updated

Tasmania v Commonwealth
Coat of Arms of Australia.svg
Court High Court of Australia
Full case nameState of Tasmania v The Commonwealth of Australia and State of Victoria
Decided8 June 1904
Citation(s) [1904] HCA 11, (1904) 1 CLR 329
Court membership
Judge(s) sitting Griffith CJ, Barton & O'Connor JJ

Tasmania v Commonwealth, [1] is a landmark decision of the High Court of Australia in 1904. The case concerned a claim by Tasmanian for customs tariffs collected in Victoria during the period between Federation and the commencement of the Commonwealth Customs Tariff. Significantly, the High Court established that the Australian Constitution should interpreted consistently with the ordinary rules of statutory interpretation.

Contents

Background

The case concerned customs and excise duties in the transition period following the federation of Australia on 1 January 1901. The intention of the Constitution was that uniform customs duties would be imposed within two years after federation [2] [n 1] and that once uniform customs duties were imposed, trade, commerce, and intercourse among the States shall be absolutely free. The Constitution recognised this would take some time to implement and addressed that transition in 3 periods. The first period was from federation "until the imposition of uniform duties of customs." [3] The second period was from the imposition of uniform duties for 2 years. [4] The third period was between 2 and 5 years from the imposition of uniform duties. [5]

On 8 October 1901 the Commonwealth had imposed uniform customs duties. The Commonwealth had collected customs duties on goods imported into Victoria and excise duty on goods manufactured in Victoria during the first period. During the second period those goods were transported to Tasmania for consumption. The Commonwealth paid the net revenue to Victoria said to be pursuant to section 89 of the Australian Constitution. Tasmania claimed the Commonwealth should have paid the net revenue to it. [6] While the Commonwealth was represented at the hearing, it did not present any argument. [7]

Tasmania's argument invited the High Court to depart from the usual approach to statutory interpretation when interpreting the Australian Constitution. [8] In the course of that argument, Tasmania argued that the contested provisions should be applied consistently with draft bills for the Australian Constitution prepared during the Constitutional Conventions.

Decision

The High Court unanimously held that Tasmania was not entitled under section 89 of the Australian Constitution to be credited with the customs duties collected by the Commonwealth.

More significant than the High Court's ruling, were its statements regarding the correct approach to the interpretation of the Australian Constitution. The High Court concluded that the Australian Constitution should be interpreted according to the approach applied to legislation generally.

Griffith CJ held that:

I will refer to some rules which have been laid down for the interpretation of Acts of Parliament, for this Constitution is an Act of Parliament. ... It is, however, always a question of construction, whether we are called upon to construe the terms of a section, or to decide whether powers are necessarily to be implied in addition to those which are expressed. The same rules of interpretation apply that apply to any other written document. [9]

Barton J similarly applied principles of statutory construction that the ordinary meaning of the words and their grammatical construction applied unless there were reasons from its context or intention to construe the provision otherwise.

O'Connor J stated that :

I do not think it can be too strongly stated that our duty in interpreting a Statute is to declare and administer the law according to the intention expressed in the Statute itself. In this respect the Constitution differs in no way from any Statute of the Commonwealth or of a State. ... The intention of the enactment is to be gathered from its words. If the words are plain, effect must be given to them; if they are doubtful, the intention of the legislature is to be gathered from the other provisions of the Statute aided by a consideration of surrounding circumstances. In all cases in order to discover the intention you may have recourse to contemporaneous circumstances – to the history of the law ... In considering the history of the law ... you must have regard to the historical facts surrounding the bringing [of] the law into existence. ... You may deduce the intention of the legislature from a consideration of the instrument itself in the light of these facts and circumstances, but you cannot go beyond it. [10]

Notes

  1. It is an interesting academic question as to what would have been the consequences if the Federal Parliament had been unable to agree on a tariff and to pass it into law.

Related Research Articles

<span class="mw-page-title-main">Australia Act 1986</span> Legislation by the UK and Australian Parliaments

The Australia Act 1986 is the short title of each of a pair of separate but related pieces of legislation: one an Act of the Commonwealth Parliament of Australia, the other an Act of the Parliament of the United Kingdom. In Australia they are referred to, respectively, as the Australia Act 1986 (Cth) and the Australia Act 1986 (UK). These nearly identical Acts were passed by the two parliaments, because of uncertainty as to whether the Commonwealth Parliament alone had the ultimate authority to do so. They were enacted using legislative powers conferred by enabling Acts passed by the parliaments of every Australian state. The Acts came into effect simultaneously, on 3 March 1986.

Australian constitutional law is the area of the law of Australia relating to the interpretation and application of the Constitution of Australia. Legal cases regarding Australian constitutional law are often handled by the High Court of Australia, the highest court in the Australian judicial system. Several major doctrines of Australian constitutional law have developed.

<i>Amalgamated Society of Engineers v Adelaide Steamship Co Ltd</i> Judgement of the High Court of Australia

Amalgamated Society of Engineers v Adelaide Steamship Co Ltd, commonly known as the Engineers case, was a landmark decision by the High Court of Australia on 31 August 1920. The immediate issue concerned the Commonwealth's power under s51(xxxv) of the Constitution but the court did not confine itself to that question, using the opportunity to roam broadly over constitutional interpretation.

The judiciary of Australia comprises judges who sit in federal courts and courts of the States and Territories of Australia. The High Court of Australia sits at the apex of the Australian court hierarchy as the ultimate court of appeal on matters of both federal and State law.

<span class="mw-page-title-main">Australian legal system</span>

The legal system of Australia has multiple forms. It includes a written constitution, unwritten constitutional conventions, statutes, regulations, and the judicially determined common law system. Its legal institutions and traditions are substantially derived from that of the English legal system. Australia is a common-law jurisdiction, its court system having originated in the common law system of English law. The country's common law is the same across the states and territories.

The separation of powers in Australia is the division of the institutions of the Australian government into legislative, executive and judicial branches. This concept is where legislature makes the laws, the executive put the laws into operation, and the judiciary interprets the laws; all independently of each other. The term, and its occurrence in Australia, is due to the text and structure of the Australian Constitution, which derives its influences from democratic concepts embedded in the Westminster system, the doctrine of "responsible government" and the United States version of the separation of powers. However, due to the conventions of the Westminster system, a strict separation of powers is not always evident in the Australian political system, with little separation between the executive and the legislature, with the executive required to be drawn from, and maintain the confidence of, the legislature; a fusion.

Section 109 of the Constitution of Australia is the part of the Constitution of Australia that deals with the legislative inconsistency between federal and state laws, and declares that valid federal laws override inconsistent state laws, to the extent of the inconsistency. Section 109 is analogous to the Supremacy Clause in the United States Constitution and the paramountcy doctrine in Canadian constitutional jurisprudence, and the jurisprudence in one jurisdiction is considered persuasive in the others.

Section 51(i) of the Australian Constitution enables the Parliament of Australia to make laws about:

The constitutional basis of taxation in Australia is predominantly found in sections 51(ii), 90, 53, 55, and 96, of the Constitution of Australia. Their interpretation by the High Court of Australia has been integral to the functioning and evolution of federalism in Australia.

Australian administrative law defines the extent of the powers and responsibilities held by administrative agencies of Australian governments. It is basically a common law system, with an increasing statutory overlay that has shifted its focus toward codified judicial review and to tribunals with extensive jurisdiction.

<i>Acts Interpretation Act 1901</i> Australian legislation

The Acts Interpretation Act 1901(Cth) is an Interpretation Act of the Parliament of Australia which establishes rules for the interpretation of Australian Acts and other legislation. The Act applies only to Commonwealth legislation, with each state and the self-governing territory having its own legislation.

<i>R v Barger</i> Judgement of the High Court of Australia

R v Barger is a 1908 High Court of Australia case where the majority held that the taxation power could not be used by the Australian Parliament to indirectly regulate the working conditions of workers. In this case, an excise tariff was imposed on manufacturers, with an exemption being available for those who paid "fair and reasonable" wages to their employees.

<i>DEmden v Pedder</i>

D'Emden v Pedder was a significant Australian court case decided in the High Court of Australia on 26 April 1904. It directly concerned the question of whether salary receipts of federal government employees were subject to state stamp duty, but it touched on the broader issue within Australian constitutional law of the degree to which the two levels of Australian government were subject to each other's laws.

Section 92 of the Constitution of Australia, as far as is still relevant today is:

... trade, commerce, and intercourse among the States, whether by means of internal carriage or ocean navigation, shall be absolutely free.

<i>Jumbunna Coal Mine NL v Victorian Coal Miners Association</i> Judgement of the High Court of Australia

Jumbunna Coal Mine NL v Victorian Coal Miners' Association is a landmark Australian judgment of the High Court. The matter related to the Commonwealth Government's power to make laws for the conciliation and arbitration of interstate industrial disputes under subsection 51(xxxv) of the Australian Constitution and the incidental power under subsection 51(xxxix), but in reaching a decision set principles on matters of statutory interpretation affecting the Constitution.

Section 99 of the Constitution of Australia, is one of several important non-discrimination provisions that govern actions of the Commonwealth and the various States.

Section 90 of the Constitution of Australia prohibits the States from imposing customs duties and excise duties. The section bars the States from imposing any tax that would be considered to be of a customs or excise nature. While customs duties are easy to determine, the status of excise, as summarised in Ha v New South Wales, is that it consists of "taxes on the production, manufacture, sale or distribution of goods, whether of foreign or domestic origin." This effectively means that States are unable to impose sales taxes.

<i>Roche v Kronheimer</i>

Roche v Kronheimer is an early case in which the High Court considered the defence power and external affairs power of the Commonwealth under the Australian Constitution and the Parliament's power to delegate certain legislative powers to the Executive. The Court concluded that Federal Parliament had the power to implement the Treaty of Versailles under the defence power and to delegate that implementation to the Governor-General. Higgins J also saw it as a valid exercise of the external affair power.

<i>Deakin v Webb</i>

Deakin v Webb was one of a series of cases concerning whether the States could tax the income of a Commonwealth officer. The High Court of Australia overruled a decision of the Supreme Court of Victoria, holding that the States could not tax the income of a Commonwealth officer. This resulted in conflict with the Privy Council that was ultimately resolved by the passage of Commonwealth law in 1907 to permit the States to tax the income of a Commonwealth officer. The constitutional foundation of the decision was overturned by the subsequent decision of the High Court in the 1920 Engineers' Case.

<i>Baxter v Commissioners of Taxation</i> (NSW) Australian tax case

Baxter v Commissioners of Taxation (NSW), and Flint v Webb, were the last of a series of cases concerning whether the States could tax the income of a Commonwealth officer which had resulted in conflict between the High Court and the Privy Council. The two cases were heard together, however two separate judgments were issued with Baxter v Commissioners of Taxation (NSW) addressing the substantive issues, and Flint v Webb addressing the applications for a certificate to appeal to the Privy Council. The judgement of Griffith CJ in Flint v Webb suggested two ways in which that conflict could be resolved. Both suggestions were adopted by the Commonwealth Parliament by legislation that permitted the States to tax the income of a Commonwealth officer, and gave the High Court exclusive appellate jurisdiction on such constitutional questions. The constitutional foundation of the decision was overturned by the subsequent decision of the High Court in the 1920 Engineers' case.

References

  1. Tasmania v Commonwealth [1904] HCA 11 , (1907) 1 CLR 329.
  2. Constitution (Cth) s 88 Uniform duties of customs.
  3. Constitution (Cth) s 89 Payment to States before uniform duties.
  4. Constitution (Cth) s 92 Trade within the Commonwealth to be free.
  5. Constitution (Cth) s 93 Payment to States for five years after uniform tariffs.
  6. Tasmania v Commonwealth (1907) 1 CLR 329 at 337-338.
  7. Tasmania v Commonwealth (1907) 1 CLR 329 at 336.
  8. Tasmania v Commonwealth [1904] HCA 11 , (1907) 1 CLR 329 at 333-335.
  9. Tasmania v Commonwealth (1907) 1 CLR 329 at 338.
  10. Tasmania v Commonwealth (1907) 1 CLR 329 at 358-359.

Further reading