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COMMONWEALTH*CONSTITUTIONAL)LAW#SUMMARY&–!COMMONWEALTH*LAWS"! !

Page 2 of 49!

Table!of!Contents!

PRINCIPLES)OF)CONSTITUTIONAL)INTERPRETATION)..................................................................................................)6!ENGINEERS!CASE!................................................................................................................................................................................................!6!

HEAD)OF)POWER)4)CORPORATIONS)POWER).....................................................................................................................)7!SECTION!51(XX)!.................................................................................................................................................................................................!7!THRESHOLD!QUESTION:!IS!X!A!CORPORATION?!...........................................................................................................................................!7!WHAT!IS!A!TRADING!AND!FINANCIAL!CORPORATION?!................................................................................................................................!7!Lower&Court&Case&Examples&.......................................................................................................................................................................&7!

WHAT!IS!A!FOREIGN!CORPORATION?!..............................................................................................................................................................!9!WHAT!IS!THE!SCOPE!OF!THE!POWER!(“WITH!RESPECT!TO”)?!...................................................................................................................!9!

HEAD)OF)POWER)4)TRADE)AND)COMMERCE)POWER)..................................................................................................)11!SECTION!51(I)!.................................................................................................................................................................................................!11!WHAT!IS!COVERED!BY!TRADE!AND!COMMERCE?!.......................................................................................................................................!11!DOES!THE!PROVISION!HAVE!A!SUFFICIENT!CONNECTION!TO!THE!POWER?!..........................................................................................!11!Australian&National&Airways&Pty&Ltd&v&Commonwealth&.............................................................................................................&11!

HEAD)OF)POWER)4)EXTERNAL)AFFAIRS)POWER)...........................................................................................................)12!TREATY!IMPLEMENTATION!...........................................................................................................................................................................!12!Bona&Fide&.........................................................................................................................................................................................................&12!Subject&Matter&...............................................................................................................................................................................................&12!Treaty&obligations&........................................................................................................................................................................................&12!Implementation&of&agreements&or&nonIobligation&treaties&.......................................................................................................&13!Conformity&Test&.............................................................................................................................................................................................&13!Partial&implementation&of&a&treaty&.......................................................................................................................................................&13!Relevant&Cases&...............................................................................................................................................................................................&14!

IMPLEMENTATION!OF!CUSTOMARY!INTERNATIONAL!LAW!......................................................................................................................!15!Determining&if&there&is&a&customary&law&obligation&.....................................................................................................................&15!Specificity&.........................................................................................................................................................................................................&15!Conformity&Test&.............................................................................................................................................................................................&15!

RELATIONS!WITH!OTHER!NATIONS!..............................................................................................................................................................!16!GEOGRAPHICAL!EXTERNALITY!......................................................................................................................................................................!17!Polyukhovic&v&Commonwealth&(War&Crimes&Case&.........................................................................................................................&17!Examples&of&Geographical&Externality&................................................................................................................................................&17!

“INTERNATIONAL!CONCERN”!........................................................................................................................................................................!18!Conformity&Test&.............................................................................................................................................................................................&18!

HEAD)OF)POWER)4)GRANTS)POWER)..................................................................................................................................)19!SECTION!96!......................................................................................................................................................................................................!19!Federal&Roads&Case&......................................................................................................................................................................................&19!

VOLUNTARY!ACCEPTANCE!.............................................................................................................................................................................!19!First&Uniform&Tax&Case&...............................................................................................................................................................................&19!Second&Uniform&Tax&Case&..........................................................................................................................................................................&19!

IS!THE!GRANT!TO!THE!STATES?!....................................................................................................................................................................!20!DOGS&Case&........................................................................................................................................................................................................&20!

TERMS!AND!CONDITIONS!...............................................................................................................................................................................!20!DOGS&Case&........................................................................................................................................................................................................&20!ICM&Agriculture&Case&..................................................................................................................................................................................&20!

HEAD)OF)POWER)–)NATIONHOOD)POWER).....................................................................................................................)21!BREADTH!OF!THE!POWER!..............................................................................................................................................................................!21!Examples&..........................................................................................................................................................................................................&21!

Davis!v!Commonwealth!.................................................................................................................................................................................................................!21!Pape!v!Commissioner!of!Taxation!.............................................................................................................................................................................................!21!Williams!(No!1)!v!Commonwealth!............................................................................................................................................................................................!21!

DEPTH!OF!THE!LAW!........................................................................................................................................................................................!21!Examples&..........................................................................................................................................................................................................&21!

Davis!v!Commonwealth!–!national!celebration!..................................................................................................................................................................!21!Pape!v!Commissioner!of!Taxation!–!national!emergencies!...........................................................................................................................................!22!

HEAD)OF)POWER)4)TAXATION)POWER).............................................................................................................................)23!

Page 3 of 49!

SECTION!51(II)!................................................................................................................................................................................................!23!WHAT!IS!A!TAX?!...............................................................................................................................................................................................!23!Compulsory&.....................................................................................................................................................................................................&23!By&a&public&authority&for&a&public&purpose?&......................................................................................................................................&23!

Cases!......................................................................................................................................................................................................................................................!23!Australian!Tape!Manufacturers!...........................................................................................................................................................................................!23!

Consolidated!revenue!.....................................................................................................................................................................................................................!23!Luton!v!Lessels!............................................................................................................................................................................................................................!23!Roy!Morgan!Research!v!Federal!Commissioner!of!Taxation!..................................................................................................................................!24!

Fee&for&service?&..............................................................................................................................................................................................&24!Air!Caledonie!International!v!Commonwealth!....................................................................................................................................................................!24!Harper!v!Victoria!..............................................................................................................................................................................................................................!24!Parton!v!Milk!Board!........................................................................................................................................................................................................................!24!

Tax&cannot&be&arbitrary&............................................................................................................................................................................&24!Not&a&fee&for&privileges&and&statutory&licenses&.................................................................................................................................&25!Fines&or&penalties&..........................................................................................................................................................................................&25!

Northern!Suburbs!General!Cemetery!Trust!v!Commonwealth!....................................................................................................................................!25!INCIDENTAL!TAX!POWER!...............................................................................................................................................................................!25!OTHER!RELEVANT!SECTIONS!.........................................................................................................................................................................!25!Section&53&.........................................................................................................................................................................................................&25!Section&55&.........................................................................................................................................................................................................&25!Section&114&......................................................................................................................................................................................................&25!

JUSTICIABILITY!.................................................................................................................................................................................................!25!

HEAD)OF)POWER)4)RACE)POWER).......................................................................................................................................)26!SECTION!51(XXVI):!.........................................................................................................................................................................................!26!RACE!..................................................................................................................................................................................................................!26!A&law&relating&to&a&subIgroup&of&a&particular&race&........................................................................................................................&26!

DEEMED!NECESSARY!......................................................................................................................................................................................!26!Manifest&Abuse&of&Power&Doctrine&........................................................................................................................................................&26!

SPECIAL!LAW!...................................................................................................................................................................................................!26!Does&the&races&power&support&detrimental&laws&affecting&a&particular&race?&..................................................................&26!

Differing!opinions!on!the!benefit/detriment!debate!........................................................................................................................................................!27!Tasmanian!Dams!Case!.............................................................................................................................................................................................................!27!WA!v!Commonwealth!(Native!Title!Act!case)!...............................................................................................................................................................!28!Kartinyeri!v!Commonwealth!(Hindmarsh!Bridge!Case)!...........................................................................................................................................!28!Kooowarta!....................................................................................................................................................................................................................................!29!

HEAD)OF)POWER)–)DEFENCE)POWER)...............................................................................................................................)30!SECTION!51(V)!................................................................................................................................................................................................!30!PEACETIME!VERSUS!WARTIME!.....................................................................................................................................................................!30!Peacetime&.........................................................................................................................................................................................................&30!

Things!that!fall!within!the!primary!aspect!............................................................................................................................................................................!30!Wartime&............................................................................................................................................................................................................&30!

WHAT!IS!BEING!DEFENDED!AGAINST?!.........................................................................................................................................................!30!WHO/WHAT!IS!BEING!DEFENDED?!.............................................................................................................................................................!30!CASE!LAW!.........................................................................................................................................................................................................!31!Communist&Party&Case&...............................................................................................................................................................................&31!Thomas&v&Mowbray&.....................................................................................................................................................................................&31!

VALIDITY)OF)LEGISLATION)4)COMMUNIST)PARTY)CASE)PRINCIPLE).....................................................................)32!THE!PRINCIPLE!................................................................................................................................................................................................!32!QUESTIONS!TO!ASK!..........................................................................................................................................................................................!32!APPLICATION!TO!THE!FACTS!.........................................................................................................................................................................!32!THE!EXCEPTION!...............................................................................................................................................................................................!32!RATIONALE!.......................................................................................................................................................................................................!32!Relevant&Sections:&........................................................................................................................................................................................&32!

APPROPRIATION)AND)SPENDING)......................................................................................................................................)34!SECTION!81:!.....................................................................................................................................................................................................!34!SECTION!83!......................................................................................................................................................................................................!34!APPROPRIATIONS!............................................................................................................................................................................................!34!Pape&v&Commissioner&of&Taxation&.........................................................................................................................................................&34!

SPENDING!.........................................................................................................................................................................................................!34!

Page 4 of 49!

Challenges&to&how&the&appropriation&is&spent&.................................................................................................................................&34!Combet!v!Commonwealth!............................................................................................................................................................................................................!34!

LIMITATION)–)FREEDOM)OF)INTERSTATE)TRADE).......................................................................................................)35!SECTION!92!......................................................................................................................................................................................................!35!PURPOSE!...........................................................................................................................................................................................................!35!WHAT!TYPE!OF!LAW!CONTRAVENES!S!92?!.................................................................................................................................................!35!Removing&a&Competitive&Advantage&....................................................................................................................................................&35!

APPLICATION!....................................................................................................................................................................................................!35!NonIProtectionist&Policy&Objective&.......................................................................................................................................................&35!

DEVELOPMENT!OF!THE!COLE!PRINCIPLE!...................................................................................................................................................!35!Cole&v&Whitfield&.............................................................................................................................................................................................&36!Bath&v&Alston&Holdings&...............................................................................................................................................................................&36!Castlemaine&Toohey&v&South&Australia&...............................................................................................................................................&36!Betfair&v&WA&(No&1)&.....................................................................................................................................................................................&37!Betfair&(No&2)&.................................................................................................................................................................................................&37!

SPORTSBET!PTY!LTD!V!NSW!.......................................................................................................................................................................!38!

LIMITATION)–)STATE)IMMUNITY)FROM)COMMONWEALTH)LAWS)........................................................................)39!THRESHOLD!QUESTION!..................................................................................................................................................................................!39!TEST!...................................................................................................................................................................................................................!39!Criteria&..............................................................................................................................................................................................................&39!

EXAMPLES!.........................................................................................................................................................................................................!39!Austin&v&Commonwealth&............................................................................................................................................................................&39!Clarke&v&Commissioner&of&Taxation&–&superannuation&scheme&...............................................................................................&39!Re&Australian&Education&Union&–&hiring,&firing&and&terms&of&employment&of&state&officials&.......................................&40!Melbourne&Corporation&v&Commonwealth&(State&Banking&case)&I&banking&......................................................................&40!

LIMITATION:)FREEDOM)OF)POLITICAL)COMMUNICATION).......................................................................................)41!STEP!ONE!–!BURDEN!ON!POLITICAL!COMMUNICATION!............................................................................................................................!41!What&communication&is&protected?&.....................................................................................................................................................&41!Does&it&protect&this&kind&of&communication?&....................................................................................................................................&41!

STEP!TWO!–!PROPORTIONALITY!AND!COMPATIBILITY!............................................................................................................................!41!Legitimate&ends&.............................................................................................................................................................................................&41!Determining&proportionality&...................................................................................................................................................................&42!Compatibility&or&undue&means&...............................................................................................................................................................&42!

Alternate,!less!drastic!measure!..................................................................................................................................................................................................!42!CASES!TO!ANALOGISE!WITH!...........................................................................................................................................................................!42!ACTV&v&Commonwealth&.............................................................................................................................................................................&42!Lange&v&ABC&....................................................................................................................................................................................................&42!Levy&v&Victoria&...............................................................................................................................................................................................&42!Coleman&v&Power&..........................................................................................................................................................................................&43!Monis&v&the&Queen&........................................................................................................................................................................................&43!Attorney&General&(SA)&v&City&of&Adelaide&...........................................................................................................................................&44!Unions&NSW&v&NSW&......................................................................................................................................................................................&44!

INCONSISTENCY).......................................................................................................................................................................)46!SECTION!109!...................................................................................................................................................................................................!46!THE!LAWS!OF!THE!COMMONWEALTH!AND!THE!STATE!MUST!BE!VALID!LAWS!....................................................................................!46!State&Law&.........................................................................................................................................................................................................&46!Commonwealth&Law&...................................................................................................................................................................................&46!

DIRECT!INCONSISTENCY:!IMPOSSIBILITY!TO!SIMULTANEOUS!OBEY!BOTH!LAWS!................................................................................!46!DIRECT!INCONSISTENCY:!ONE!LEGISLATURE!TAKES!AWAY!OR!DENIES!A!RIGHT,!PRIVILEGE,!ENTITLEMENT!OR!POWER!

CONFERRED!BY!THE!OTHER!...........................................................................................................................................................................!46!Absolute&right&versus&qualified&right&...................................................................................................................................................&46!

INDIRECT!INCONSISTENCY:!“COVERING!THE!FIELD”!.................................................................................................................................!47!What&field&does&the&Commonwealth&law&cover?&.............................................................................................................................&47!Is&there&an&intention&to&cover&that&field&exclusively&and&exhaustively?&.................................................................................&47!

Clyde!Engineering!Co!Ltd!v!Cowburn!......................................................................................................................................................................................!47!Ex!Parte!McLean!...............................................................................................................................................................................................................................!48!Ansett!Transport!Industries!v!Wardley!..................................................................................................................................................................................!48!Jemena!Asset!Management!(3)!Pty!Ltd!v!Coinvest!Ltd!....................................................................................................................................................!48!

Page 7 of 49!

HEAD!OF!POWER!=!Corporations!power!

Section!51(xx)!The!Parliament!shall,!subject!to!this!Constitution,!have!power!to!make!laws!for!the!peace,!order!and!good!governance!of!

the!Commonwealth!with!respect!to!foreign!corporations,!and!trading!or!financial!corporations!formed!within!the!limits!of!the!Commonwealth.!

Threshold!Question:!Is!X!a!corporation?!Is!the!company!is!created!by!statute!or!incorporated!under!the!incorporations!act?!

What!is!a!trading!and!financial!corporation?!To!determine!if!a!corporation!is!a!trading!or!financial!corporation,!the!trading!activities!must!form!a!sufficiently!significant!

proportion!of!the!corporations!overall!activities!(Tasmanian'Dams'Case'confirming!the!minority!view!in!R'v'Federal'Court'of'Australia;'Ex'parte'WA'National'Football'League'(Adamson’s'Case))!

!

The!corporation!must!engage!in!trading!or!financial!activities,!though!it!does!not!have!to!be!the!predominant!activity,!but!

just!sufficient!to!be!able!to!call!it!a!trading!corporation!(State'Superannuation'Board'v'Trade'Practices).!

!

In!Adamson!Case,!Mason!J!held!that!education!and!religion!would!not!be!a!trading!corporation,!but!the!lower!court!

decisions!challenge!the!education.!!

State'Superannuation'Board'v'Trade'Practices'Commission'

FACTS:!The!predominant!purpose!was!to!provide!retirement!benefits!for!its!member!and!engaged!in!activities!that!

could!be!classed!as!trading.!!

ISSUE:!was!the!State!Superannuation!Board!a!financial!corporation!and!subject!to!the!Trade&Practices&Act?!HELD:!State!Superannuation!Board!was!a!financial!corporation!for!the!purposes!of!s!51(xx)!

!

Just!as!a!corporation!may!be!a!trading!corporation,!notwithstanding!that!its!trading!activities!are!entered!into!in!the!course!of!carrying!on!some!primary!or!dominant!undertaking,!so!also!with!a!corporation!which!

engages!in!financial!activities!in!the!course!of!carrying!out!its!dominant!or!primary!undertaking!

!

In!order!for!a!corporation!to!be!a!financial!corporation,!its!financial!activities!need!not!be!its!predominant!

activities,!but!need!only!form!a!substantial!proportion!of!its!total!activities.!

!

Tasmanian'Dams'Case'

FACTS:!the!HydrogElectric!Commission!was!a!governmentgcontrolled!corporation!created!by!the!HydroHElectric'

Commission'Act'1944'(Tas)'that!planned!to!build!a!dam!and!on!the!Franklin!river!system.!The!aim!was!to!generate!electricity!that!would!sell!to!consumers.!

ISSUE:!was!the!HydrogElectric!Commission!a!trading!corporation!under!s!51(xx)?!

HELD:!a!majority!of!Mason,!Murphy,!Brennan,!and!Deanne!JJ!held!the!corporation!to!be!a!trading!corporation!

Per!Mason!J:!

• The!connexion!of!a!corporation!with!the!government!of!a!state!will!not!take!it!outside!of!s!51(xx)!(St'George'County'Council)!

• Though!the!main!activities!of!the!Commission!were!for!the!public!good,!the!Commission!seels!electrical!power!in!bulk!and!by!retail!on!a!very!large!scale,!and!by!virtue!of!this!activity!alone,!is!a!

trading!corporation!

!

Where!the!company!does!not!engage!in!any!activities!(eg.!a!shelf!company),!whether!or!not!such!a!company!is!a!trading!or!

financial!corporation!can!be!determined!by!looking!at!the!purpose!of!the!company!(Fencott'v'Muller).!!

HELD:!The!objectives!of!the!company!were!so!broad!that!it!was!determined!to!be!a!trading!corporation.!

!

Lower!Court!Case!Examples!R'v'Federal'Court'of'Australia;'Ex'parte'WA'National'Football'League'(Adamson’s'Case)'

Regarded!football!clubs!and!leagues!as!a!trading!corporation!because!they!engaged!in!organising!games,!selling!

tickets,!catering!for!events!and!promoting!the!games.!

'

E'v'Australian'Red'Cross'Society)(1991))27)FCR)310)(Wilcox)J))The!Australian!Red!Cross!was!considered!to!be!a!trading!corporation!because!it!generated!$2!million!per!year!

from!operating!shops,!street!stalls!and!first!aid!courses.!This!was!despite!it!being!a!nongprofit!body.!!

!

Page 8 of 49!

The!Royal!Prince!Alfred!Hospital!was!held!to!be!a!trading!corporation!because!it!traded!in!medical!and!surgical!

services!for!profit,!despite!being!a!publicly!owned!statutory!corporation.!!

Quickenden'v'O’Connor)(2001))109)FCR)243)(Full)Court)of)the)Federal)Court))The!University!of!WA!was!held!to!be!a!trading!corporation!because!it!bought!and!sold!and!rented!out!properties!

(generating!$44!million),!sold!publications,!ran!student!accommodation,!offered!IT!services!through!consultancies!

and!invested!money.!However,!the!provision!of!education!services!through!the!HECS!(statutory!fixed!fee)!system!

did!not!count!to!it!being!a!trading!corporation.!

)Orion'Pet'Products'Pty'Ltd'v'Royal'Society'for'the'Protection'of'Cruelty'to&Animals'(Vic)'Inc'(2002))120)FCR)191)(Weinberg)J)!

The!RSPCA!was!considered!to!be!a!trading!corporation!because!it!generated!revenue!from!offering!accreditation!

services!for!animal!products,!operating!dog!pounds!as!a!contractor,!offering!animal!training!services,!selling!

animals!and!running!vet!clinics.!All!of!which!generated!substantial!revenue.!

!Educang'Ltd'v'Queensland'Industrial'Relations'Commission)(2006))154)IR)436)(Queensland)Industrial)Court))

A!churchgowned!corporation!operating!private!schools!was!considered!to!be!a!trading!corporation!that!traded!in!

educational!services!because!it!generated!revenue!from!tuition!fees,!canteens!etc.!!

!

However,!government!grants!were!not!considered!to!be!revenue!that!contributed!to!its!character!as!a!trading!

corporation.!

!Aboriginal'Legal'Services'of'WA'Inc'v'Lawrence)(2008))252)ALR)136)(Western)Australia)Supreme)Court)of)Appeal))

The!Aboriginal!Legal!Services!of!WA!Inc!was)not!considered!to!be!a!trading!corporation.!It!provides!legal!services!to!members!of!indigenous!communities.!It!was!largely!funded!by!government!grants!and!its!services!were!

provided!largely!for!free.!Its!activities!were!not!considered!to!be!trading!activities.!

!

Australian'Workers’'Union'of'Employees,'Qld'v'Etheridge'Shire'Council)(2008))250)ALR)485)(Spender)J))This!local!council!undertook!a!number!of!activities!for!which!it!charged!a!fee:!it!ran!a!tourist!centre!and!charged!an!entry!fee!and!had!kiosk!sales;!it!ran!a!hostel!for!primary!school!students!for!a!fee;!it!ran!a!childcare!centre!which!

was!notgforgprofit;!it!rented!out!office!for!commercial!rent;!it!owned!and!rented!out!residential!property;!it!sold!

land;!it!sold!water!for!a!fee!(but!the!fee!was!below!cost);!and!it!provided!services!to!Centrelink!for!a!fee.!It!also!got!

income!from!investments.!Spender!J!held!that!it!was!not!a!trading!corporation.!His!Honour!held!that!none!of!the!

activities!were!considered!to!be!trading!activities:!most!of!them!ran!at!a!loss,!and!were!all!directed!to!public!

objectives.!Their!scale!was!inconsequential!and!incidental!to!the!primary!activity!and!function!of!a!local!council.!)(Note:)this)case)probably)goes)against)the)trend,)and)seems)to)be)inconsistent)with)some)of)the)statements)from)the)High)Court).)

!

Bankstown'Handicapped'Children’s'Centre'Association'Inc'v'Hillman)(2010))265)ALR)23)(Full)Court)of)the)Federal)Court))

The!Association!operated!in!the!disability!services!and!childcare!sectors,!providing!accommodation!and!support!

services!and!operating!a!pregschool.!Most!of!its!funds!came!from!two!government!departments!–!the!Department!of!Ageing,!Disability!and!Homecare!(DADHC)!and!the!Department!of!Community!Services!(DoCS).!DADHC!

provided!funds!for!accommodation!and!other!provisions!for!disabled!people.!Unused!money!was!returned!to!the!

department.!DoCS!funded!the!Association!to!provide!accommodation!for!children!unable!to!live!at!home!and!to!

subsidise!childcare!services.!If!the!money!was!not!spent,!the!Association!kept!it.!

!

The!Court!concentrated!on!the!funding!received!from!DoCS.!Those!arrangements!generated!a!substantial!part!of!the!income!(in!excess!of!$3.3!million),!constituting!35%!of!total!income.!These!services!were!considered!by!the!

Court!to!be!provided!on!commercial!terms!for!the!state!–!ie,!they!were!provided!under!contract!to!the!state!for!

remuneration!according!to!a!schedule!of!service!delivery.!Thus,!the!services!were!considered!to!be!trading!

activities,!and!the!corporation!was!trading!in!those!services!(even!though!the!services!were!being!paid!for!by!the!

state!rather!than!the!recipient!of!the!services).!

The!fact!that!the!services!could!be!described!as!public!welfare!services!or!being!provided!for!a!public!welfare!

purpose!did!not!change!that!conclusion.!!!(Note:!This!case!seems!to!have!the!effect!of!distinguishing!between!money!paid!by!the!government!by!

way!of!grant!to!an!organisation,!like!a!charity,!to!provide!services!(eg,!Aboriginal!Legal!Services!of!WA!Inc!

v!Lawrence!above);!and!a!commercial!enterprise!being!engaged!on!a!commercial!basis!by!the!government!

to!provide!services.!The!former!may!not!be!a!trading!corporation;!the!latter!may!be.!These!sorts!of!

judgments!become!difficult!and!would!require!a!close!consideration!of!the!basis!and!terms!upon!which!

the!money!is!paid).!!!!

!

Page 9 of 49!

What!is!a!foreign!corporation?!A!foreign!corporation!is!a!corporation!that!was!formed!outside!the!limits!of!the!Australian!Commonwealth!(NSW'v'

Commonwealth'(Incorporation'Case)).!

!The!character!of!a!foreign!corporation!is!fixed!by!its!status,!not!by!its!activities!(Work'Choices'Case)!

!

What!is!the!scope!of!the!power!(“with!respect!to”)?!QUESTION:!does!the!law!sufficiently!relate!to!or!have!a!sufficient!connection!to!the!head!of!power?!

!

NOTE:!dual!characterisation!!

There!will!be!a!sufficient!connection!if!the!law!makes!the!corporation!the!object!of!command!(Work'Choices)!

!

OBJECT!OF!COMMAND!TEST:!The!power!conferred!by!s!51(xx)!extends!to!the!regulation!of!the!activities,!

functions,!relationships!and!the!business!of!a!corporation,!the!creation!of!rights,!and!privileges!belonging!to!such!a!

corporation,!the!imposition!of!obligation!on!it!and,!in!respect!of!those!matters,!to!the!regulation!of!the!conduct!of!

those!through!whom!it!act,!its!employees!and!shareholders!and,!also,!the!regulation!of!those!whose!conduct!is!or!is!capable!of!effecting!its!activities,!functions,!relationships!or!business!(Re'Pacific'Coal'Pty'Ltd;'Ex'Parte'

Construction,'Forestry,'Mining'and'Energy'Union'(as)per)Gaudron)J))and!confirmed!in)NSW'v'Commonwealth'(Work'Choices'Case))!

!

!

NSW'v'Commonwealth'(Work'Choices'Case)'

FACTS:!the!Howard!government!attempted!a!fundamental!reshaping!of!industrial!relations!in!Australia!through!the!amendment!of!the!Workplace&relations&Act&1996&(Cth)!CONFIRMED:!the!wide!reading!of!the!corporations!power!and!rejected!the!narrow!view.!

STATE!ARGUMENT:!argued!that!the!corporations!power!was!limited!to!regulating!a!corporations!external!relations!

HELD:!majority!held!it!was!inappropriate!and!unhelpful!to!draw!any!distinction!between!external!and!internal!

relationships!of!a!corporation!and!rejected!this!argument.!

STATE!ARGUMENT:!the!power!was!limited!to!laws!in!which!the!nature!of!the!corporation!was!significant!

HELD:!this!argument!was!not!expressly!accepted,!with!the!majority!holding!that!the!corporations!power!was!

validly!exercised!if!a!law!prescribed!norms!regulating!the!relationship!between!corporations!and!their!employees.!

STATE!ARGUMENT:!the!power!was!limited!by!the!existence!of!the!conciliation!and!arbitration!power!

HELD:!!the!majority!rejected!this!argument.!

!A!law!may!be!one!with!respect!to!a!trading!corporation,!although!it!casts!obligations!upon!a!person!other!than!a!trading!

corporation!(Actors'and'Announcers'Equity'Association'v'Fontana'Films'Pty'Ltd)!

!

NSW'v'Commonwealth'(Incorporation'Case)!

FACTS:!the!Commonwealth!enacted!the!Corporations&Act&1989!based!on!the!assumption!that!s!51(xx)!empowered!the!Commonwealth!to!legislate!for!the!incorporation!of!a!company!if!the!subscribers!to!the!memorandum!of!

association!intended!that!its!activities!would!substantially!be!trading!or!financial!activities.!

HELD:!s!51(xx)!did!not!give!the!Commonwealth!the!power!to!regulate!the!process!of!incorporation!

REASONS:!Linguistic:!the!use!of!the!word!‘formed’!in!s!51(xx),!which!is!a!past!participle,!described!corporations!that!had!already!been!formed,!essentially!excluding!the!Commonwealth!from!regulating!the!incorporation!

process!

!

Practicality:!the!character!of!a!corporation!may!vary,!so!that!at!one!time!it!might!be!a!trading!and!financial!corporation!and!not!at!another,!suggesting!further!that!the!power!in!s!51(xx)!was!not!meant!to!

extend!to!regulating!incorporation.!!

Convention)debates:!the!majority!referred!to!the!Convention!Debates!and!determined!that!there!was!no!ground!for!thinking!the!corporations!power!was!framed!with!the!intention!of!conferring!upon!the!

Commonwealth!the!power!to!provide!for!the!incorporation!of!companies.!

!

Authority)and)Precedence:!majority!looked!at!past!decisions!and!held!that!no!authority!supports!the!interpretation!of!the!provision!to!include!incorporation.!

DISSENT:!Deanne!J!provided!a!strong!dissent!to!the!majority.!!

!

Linguistic:!argued!that!‘formed’!was!used!to!distinguish!the!foreign!corporations!from!corporations!formed!in!Australia!

Page 11 of 49!

HEAD!OF!POWER!=!Trade!and!commerce!power!

Section!51(i)!The!Parliament!shall,!subject!to!this!Constitution,!have!power!to!make!laws!for!the!peace,!order,!and!good!government!of!

the!Commonwealth!with!respect!to:!trade!and!commerce!with!other!countries,!and!among!the!States.!!

What!is!covered!by!trade!and!commerce?!Trade!and!commerce!is!to!be!understood!in!its!broadest!sense!(WA'&'A'McArthur'v'Queensland),!including:!

• Movement!of!goods!across!borders!

• Entire!commercial!relation!

• Transport!of!people!

• Supply!of!gas!

• Transmission!of!electricity!

• Commercial!advertising!

• Interstate!gambling!

• Commercial!arrangements!such!as!employment!(WA'&'A'McArthur)!!

Trade!and!commerce!does!not!include:!

• Production!

• Mining!

• Manufacture!!

Murphyores'Inc'Pty'Ltd'v'Commonwealth'

FACTS:!The!Customs&Act&1901&(Cth)!gave!power!to!make!regulations!prohibiting!exports.!Murphyores!engaged!in!sand!mining!on!Fraser!Island!in!Qld,!and!the!company!challenged!the!validity!of!the!Commonwealth!enactments!

after!the!approval!of!their!exportation!under!reg!9(3)!was!delayed!until!an!inquiry!under!the!Environmental&Protection&(Impact&Proposals)&Act&1974&(Cth)!was!undertaken.!!HELD:!the!power!conferred!by!s!51(i)!enables!the!Parliament!to!prohibit,!regulate!and!control!the!importation!and!

exportation!of!goods,!matters!which!lie!at!the!heart!of!trade!and!commerce!with!other!countries!(per!Mason!J).!

PRINCIPLE:!if!the!law!falls!within!the!core!of!the!power,!it!does!not!matter!if!the!Commonwealth’s!purpose!may!be!something!else!entirely!or!that!it!may!fall!under!another!power!of!the!Constitution!

Here,!the!law!regarded!the!regulation!of!exports,!which!was!said!to!be!at!the!heart!of!the!trade!and!

commerce!power,!so!the!fact!that!the!law!could!be!said!to!also!regard!the!environment!is!no!relevant.!

!

Dual!Characterisation:!if!the!law!falls!within!the!core!of!the!power!it!does!not!matter!if!the!Commonwealth!purpose!

may!!

!Commonwealth'Bank'of'NSW'v'Commonwealth'

!

Does!the!provision!have!a!sufficient!connection!to!the!power?!

Australian!National!Airways!Pty!Ltd!v!Commonwealth!FACTS:!Commonwealth!established!a!Statutory!Commission!to!establish!an!airline.!!

ANA!ARGUMENT:!the!creation!of!a!government!commission!was!beyond!what!was!included!in!the!trade!and!commerce!power;!argued!that!the!commonwealth!could!do!anything!to!regulate!but!the!head!of!power!did!not!

extend!to!allow!the!Commonwealth!to!do!actual!trade!and!commerce.!

HELD:!the!Commonwealth!can!engage!in!interstate!or!overseas!trade!and!commerce!by!virtue!of!this!power,!so!the!

creation!of!the!commission!was!valid.!

! !

Page 12 of 49!

HEAD!OF!POWER!=!External!affairs!power!Section!51(xxix):!The!Parliament!shall,!subject!to!this!Constitution,!have!power!to!make!laws!for!the!peace,!order,!and!good!

government!of!the!Commonwealth!with!respect!to:!external!affairs.!

!

There!are!different!aspects!to!the!external!affairs!power:!1. Treaty!implementation!

2. Laws!that!implement!international!customary!law!

3. Relations!with!other!nations!

4. Geographical!externality!

5. Matters!of!international!concern!

Treaty!implementation!It!is!clear!that!the!legislative!power!of!the!Commonwealth!over!external!affairs!certainly!includes!the!power!to!execute!

within!the!Commonwealth!treaties!and!conventions!entered!into!with!foreign!powers!(R'v'Burgess;'Ex'Parte'Henry'per!

Evatt!and!McTiernan!JJ).!

!

There!are!six!fundamental!steps!when!determining!if!the!Commonwealth!has!the!power!to!implement!a!treaty!under!the!

external!affairs!power.!!

Bona!Fide!Threshold!Question:!the!treaty!must!be!entered!into!bona!fide!(R'v'Burgess;'Ex'Parte'Henry).!

!

This!will!only!be!an!issue!–!probably!only!ever!have!to!look!into!this!if!the!Commonwealth!has!entered!into!a!

bilateral!treaty!in!response!to!an!outcry!on!a!certain!issue.!But!the!court!has!made!it!clear!they!do!not!look!behind!the!acts!of!the!Legislature,!so!it!is!rarely!going!to!be!an!issue!(R'v'Burgess;'Ex'Parte'Henry)!

!

Basically!the!court!cannot!enter!into!a!treaty!as!a!device!to!implement!domestic!law!or!attract!a!legislative!power.!

!

This!is!a!frail!shield!as!a!limitation!on!Commonwealth!treaty!power!(Gibbs!J!in!Koowarta'v'BjelkeHPeterson)!

!

Subject!Matter!The!Commonwealth!has!the!power!to!legislate!with!regards!to!any!treaty,!irrespective!of!its!subject!matter,!as!the!

international!concern!or!international!character!is!established!by!the!Commonwealth’s!entrance!into!the!convention!or!

treaty!(Tasmanian'Dams'Case'per!Mason!J;!confirmed!in!Industrial'Relations'Case).!

!

EXAMPLE:!

• Environmental!laws!in!Tasmanian'Dams'Case!

• Racial!discrimination!in!Koowarta!

• Industrial!relations!in!Industrial'relations'case!!

Treaty!obligations!Brennan!J!required!that!the!treaty!contain!an!obligation!for!it!activate!the!external!affairs!power!(Tasmanian'Dams'Case'

per!Brennan!J!–!narrowest!view!of!the!majority,!so!is!the!benchmark)!

!

In!this!case,!the!words!“Each)state)party)[…])will)do)all)it)can)to)this)end)[being)the)identification,)protection,)conservation,)presentation)and)transmission)to)future)generations)of)the)cultural)and)natural)heritage]”!was!enough!to!constitute!an!obligation!on!the!Commonwealth!and!activate!the!external!affairs!power!(Article!4!g!

Convention!for!the!Protection!of!the!World!Cultural!and!Natural!Heritage)!!

A!treaty!expressed!in!terms!of!an!aspiration!do!not!liven!the!external!affairs!power!and!must!be!sufficiently!specific!

(Industrial'Relations'Case'–'per!Brennan!CJ,!Gaudron,!Toohey,!McHugh!and!Gummow!JJ)!

!

Things!to!look!for!to!identify!an!obligation:!

• Language!such!as!shall!instead!of!will,!must!instead!of!may!etc!

• Mention!of!a!duty!

• NOTE:!international!treaties!are!not!usually!expressed!with!the!precision!of!domestic!law,!but!that!lack!of!precision!does!not!take!away!from!the!obligatory!nature!(Tas'Dams'Case'per!Deane!J).!

!

Page 13 of 49!

Implementation!of!agreements!or!non=obligation!treaties!There!is!scope!for!the!a!treaty!without!an!obligation,!or!agreements!other!than!treaties!to!be!the!basis!for!the!external!

affairs!power…!!

If!there!is!no!obligation,!then!urge!the!court!to!overcome!the!narrower!view!of!the!requirements!through!the!obiter!in!Tas!

Dams!

!

Conformity!Test!The!law!must!be!capable!of!being!reasonably!considered!to!be!appropriate!and!adapted!to!achieving!what!is!said!to!impress!is!with!the!character!of!a!law!with!respect!to!external!affairs!(Commonwealth'v'Tasmania'(Tasmanian'Dams'

Case)'per!Deane!J!confirmed!in!Victoria'v'Commonwealth'(Industrial'Relations'Case)).!

!

Deane!J!also!emphasized!the!need!for!there!to!be!a!reasonable!proportionality!between!the!designated!purpose!and!object!

and!the!means!which!the!law!embodies!for!achieving!of!procuring!it!(Commonwealth'v'Tasmania'(Tasmanian'Dams'

Case))!

This!was!held!not!to!be!particularly!helpful!by!the!majority!in!Industrial'relations'Act'Case,!holding!that!it!really!just!appears!to!restate!the!basic!question,!that!of!reasonably!appropriate!and!adaptable.!

!

!

Tasmanian'Dams'Case'

FACTS:!Concerned!ss!9(1)(agh)!of!the!World!Heritage!Properties!Conservation!Act!1983!(Cth)!which!the!Cth!argued!

was!valid!on!the!basis!of!the!external!affairs!power!(among!others)!

World)Heritage)Properties)Conservation)Act)1983)(Cth))9!(1)!Except!with!the!consent!in!writing!of!the!Minister,!it!is!unlawful!for!a!person,!whether!himself!or!by!his!

servant!or!agent!–!

(a) to!carry!out!any!excavation!works!on!any!property!to!which!this!section!applies;!(b) to!carry!out!operations!for,!or!exploratory!drilling!in!connection!with,!the!recovery!of!minerals!on!any!

property!to!which!this!section!applies;!(c) to!erect!a!building!or!other!substantial!structure!on!any!property!to!which!this!section!applies!or!to!do!any!

act!in!the!course!of,!or!for!the!purpose!of,!the!erection!of!a!building!or!other!substantial!structure!on!any!

property!to!which!this!section!applies;!

(d) to!damage!or!destroy!a!building!or!other!substantial!structure!on!any!property!to!which!this!section!applies!

(e) to!kill,!cut!down!or!damage!any!tree!on!any!property!to!which!this!section!applies!(f) to!construct!or!establish!any!road!or!vehicular!track!on!any!property!to!which!this!section!applies;!(g) to!use!explosives!on!any!property!to!which!this!section!applies;!or!(h) if!an!act!is!prescribed!for!the!purposes!of!this!paragraph!in!relation!to!particular!property!to!which!this!

section!applies,!to!do!that!act!in!relation!to!that!property.!

ARGUED:!The!Cth!argued!that!the!above!act!was!the!implementation!of!treaty!obligation!coming!out!of!Article!4!of!the!Convention!for!the!Protection!of!the!World!Cultural!and!Natural!Heritage.!

Convention)for)the)Protection)of)the)World)Cultural)and)Natural)Heritage)Article!4:!Each)State)Party)to)this)Convention!recognises!that!the!duty!of!ensuring!the!identification,!protection,!conservation,!presentation!and!transmission!to!future!generations!of!the!cultural!and!natural!heritage!referred!to!

in!Articles!1!and!2!and!situated!on!its!own!territory,!belongs!primarily!to!the!State.!It)will)do)all)it)can)to)this)end,)to)the)utmost!of!its!own!resources!and,!where!appropriate,!with!any!international!assistance!and!cogoperation,!in!particular,!financial,!artistic,!scientific!and!technical!which!it!may!be!able!to!obtain.!

HELD:!that!sections!(a)g(g)!were!not!reasonably!appropriate!or!adapted!to!the!purpose!and!object!of!the!article!4!of!the!convention.!Section!9(1)(h),!however,!was!found!to!be!reasonably!appropriate!and!adapted!and!therefore!

valid.!

!

The!law!must!prescribe!a!regime!that!the!treaty!itself!defined!with!sufficient!specificity!to!direct!the!general!course!to!be!

taken!by!the!signatory!states!(Industrial'relations'act'case'per!majority)!

!

Partial!implementation!of!a!treaty!Only!picking!and!implementing!part!of!a!treaty!will!not!be!fatal,!but!a!law!will!be!held!invalid!if!the!deficiency!is!so!

substantial!as!to!deny!the!law!the!character!of!a!measure!implementing!the!Convention!or!its!is!a!deficiency!which,!when!

coupled!with!the!other!provisions!of!the!law,!make!it!substantially!inconsistent!with!the!Convention!or!no!longer!fits!the!

conformity!test!(majority!judgment!in!Industrial'Relations'Act'Case).!

!