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Introduction:
Constitutional law particularly concerns the extent and limits of the powers of the Legislature, the Executive and the Judicature and the limits of those powers. The study of constitutional law involves the analysis of the decisions of the courts in solving constitutional problems which arise when; people, associations or government challenge governmental action in the courts on the basis that constitutional powers have been exceeded or constitutional limitation on power have been breached. The parliament that enacts a challenged law must then point to a power or combination of powers that authorise it to enact that law. It must demonstrate that the law is sufficiently connected to the power or powers invoked to support it.
2. Equality before the law, or the equal subjection of all classes to the ordinary law of the land administered by the ordinary law courts A v Hayden [No 2] (1984) 156 CLR 532 o Government officials are not exempt from the duty of obedience to the law that applies to any other cititzen. o The Minister for Foreign Affairs authorised members of the Australian Security Intelligence Service to recruit and train a small team of persons to engage in an exercise involving the rescuing of a participant hostage from a room of the Sheraton Hotel in Melbourne. The team were equipped and hotel staff was not informed of the operation. o Brennan J held that, the principleis that all officers and ministers ought to serve the Crown according to the lawsthere is no obsolete rule; the principle is fundamental to our law, though it seems sometimes forgotten when the executive government or their agencies are fretted or frustrated by laws which affect the fulfilment of their policies
3. Power comes from the people. The constitution is regarded as a reflection of, but remaining subject to, the power of the people to change it. The laws of the constitution are not the source but the consequence of the rights of individuals, as defined and enforced by the courts. Preamble of the Constitution reflects that the Constitution was a result of the popular will:
Judicial Review The rule of law places the courts, particularly the High Court, in a central position in the development of constitutional law. All of the Diceyan concepts of the rule of law are established on the proposition that the validity of all legislative (and executive) action is judged by the courts not the legislative or executive branch of government. The idea that the constitutional validity of all governmental action is subject to the review of the courts is the doctrine of judicial review. Australian Communist Party v The Commonwealth (1951) 83 CLR 1 o The Cth enacted legislation which purported to dissolve the Australian Communist Party and gave the Governor-General the power to declare any organisation which supported communism to be illegal. The preamble stated that this law was necessary for the defence of Australia and the preservation of the nation. Communist challenged saying its judiciarys job to determine laws validity. o Dixon J struck down the legislation after referring to the legislative powers and limitations on power in the Constitution, saying that the Australian government is government under the Constitution and that is an instrument framed in accordance with many traditional conceptions, for example, in separating the judicial power from other functions of government, others of which are simply assumed. Among these I think that it may fairly be said that the rule of law forms an assumption.
The central significance of the rule of law and judicial review to an understanding of Australian constitutional law was emphasised by the unanimous High Court decision in Lange v Australian Broadcasting Corporation (1997): The Constitution displaced, or rendered inapplicable, the English common law doctrine of the general competence and unqualified supremacy of the legislature. It placed upon the federal judicature the responsibility of deciding the limits of the respective powers of State and Commonwealth governments.
The decisions of ministers and public servants acting as the Crown in right of the Commonwealth are also susceptible to judicial review through the prerogative writs outlined in s 75(v) of the Constitution. Section 75 (iii) and (v) provides: Original jurisdiction of High Court In all matters: o (iii) in which the Commonwealth, or a person suing or being sued on behalf of the Commonwealth, is a party; o (v) in which a writ of Mandamus or prohibition or an injunction is sought against an officer of the Commonwealth; the High Court shall have original jurisdiction.
Plaintiff S157 v Commonwealth (2003) 211 CLR 476 o Gleeson CJ: o the Australian Constitution is framed upon the assumption of the rule of law o Gaudron, McHugh, Gummow, Kirby and Hayne JJ: o constitutional writs and the conferral upon this Court of an irremovable jurisdiction to issue them to an officer of the Commonwealth constitutes a textual reinforcement for what Dixon J said about the significance of the rule of law for the Constitution in
R v Kirby; Ex parte Boilermakers Society of Australia (1956) 94 CLR 254 at 275 o Arbitration court was found in-able to exercise judicial duty which was needed to handle a contempt case. o If you knew nothing of the history of the separation of powers, if you made no comparison of the American instrument of government with ours, if you were unaware of the interpretation it had received before our Constitution was framed according to the same plan, you would still feel the strength of the logical inferences from Chaps. I, II and III and the form and contents of ss. 1, 61 and 71 cannot all be treated as meaningless and of no legal consequence.
It is the judicature that determines the boundaries of legislative and executive power. Due to the operation of responsible government and the principle that the Executive acts on the advice of the Legislature, in Australia a split exists between the Judicature and the other branches of government. Also based by judicial tenure guaranteed by s72 of the Constitution, which reinforces the independence of Ch III judges, court exercising Federal Jurisdiction or capable of being vested with Federal Jurisdiction enjoy the power to strike down legislative and executive action free from the presence of political influence (theoretically). o Eg Judicature has confirmed exclusive power of judicial review..to determine criminal guilt and will not take directions from the Legislature or the Executive
Representative Government The Constitution sets up a system of representative government and confirms the supremacy of the people within the Australian system of government. Lange v Australian Broadcasting Corporation (1997) 145 CLR 96 o David lange former NZ PM Defamed by 4 corners who argued freedom of communications arises from representative system of government. o Sections 7 and 24 of the Constitution, read in context, require the members of the Senate and the House of Representatives to be directly chosen at periodic elections by the people of the States and of the Commonwealth respectively o The constitution intended to provide for the institution of representative and responsible government is made clear both by the Convention Debates and by the terms of the Constitution itself. o Sections 1, 7, 8, 13, 24, 25, 28 and 30 of the Constitution, give effect to the purpose of self-government by providing for the fundamental features of representative government. Therefore the sections ensure that the Parliament of the Commonwealth will be representative of the people of the Commonwealth. Representative government prescribed by the Constitution gives rise to implied freedoms: - freedom to discuss political and governmental affairs (Lange v Australian Broadcasting Corporation (1997)) - freedom of association and freedom of movement?? However, there are limits to the extent to which this system of representative government guarantees a broader vision of representative democracyparliament considerable discretion to alter the electoral laws..consequenly the type of representative government. McGinty v WA (1996) o WA voting system allowed some electorates with a lot less population than others. o Held state electoral laws for mal apportionment of electors were invalid. Langer v Cth (1996)
Parliamentary Sovereignty: Katinyeri v Cth (1998) o Brennan and Mchugh held parliament has power to make or unmake, subject to judicial review When the Cth exercises its legislative power it is restricted by all of the express and implied limitations on power that operate in the Constitution that are applied by Ch III courts exercising their power of judicial review Apart from these limitations, the courts do no purport to assert an power to strike down laws on the basiss that they implement bad policies, the abuse of legislative power is not a reason for denying the existence of legislative power. In a system f representative government, elections are supposed to ensure that parliamentary supremacy is not absolute beuase the exercise of legislative power can be checked by the electorate. Lange v ABC (1997) o constitution displaced..English common law doctrine of the general competence and unqualified Supremacy of the legislature Mobile oil Australia PL v Victoria (2002) o Courts do not strike down legislation because its bad policy. Abuse of legislative power is no reason to deny powers existence. Power can be checked by the people.
Leslie Stephen(Dicey contemporary) said: If a legislature decided all blue-eyed babies should be murdered, the preservation of blue eyed babies would be illegal; but legislators must go mad .. and subjects idiotic
Responsible Government This is a system of government in which the executive, the administrative arm of government, is responsible to the legislature. The executive acts on advice of ministers, so long as they continue to command the support of the majority of the House of Representatives (or in the States, the lower House). These ministers in turn are responsible to the legislature and ultimately, the people at elections. Also executive dependent on Legislature for its funds.
Egan v willis (1998) 195 CLR 424 o Responsible Government does not require our elected representatives to behave responsibly, though we can make them responsible for their behaviour at elections. Per Gadron, Gummow, Hayne, Kirby JJ
R v Kirby; Ex parte Boilermakers Society of Australia (1956): o Probably the most striking achievement of the framers of the Australian instrument of government was the successful combination of the British system of parliamentary government containing an executive responsible to the legislature with American federalism. This meant that the distinction was perceived between the essential federal conception of a legal distribution of governmental powers among the parts of the system and what was accidental to federalism, though essential to British political conceptions of our time, namely the structure or composition of the legislative and executive arms of government and their mutual relations. The fact that responsible government is the central feature of the Australian constitutional system makes it correct enough to say that we have not adopted the American theory of the separation of powers.
The role of the Governor General: Sections 62 and 64 combine to provide for the executive power of the Commonwealth, which is vested with the Queen and exercisable by the Governor General according to s61, be subject to responsible government. The principle of responsible government sees that the executive acts on the advice of the government. However, any remaining vestiges of foreign legislative power over Australia were removed by the Australia Acts 1986 (Cth), thus the Australian executive can no longer be directed by the Queen.
The separation of Executive power: A separation of executive power does not really exist in Australia, as the separation of legislative functions from executive functions is less distinct than the separation of judicial power. The Victorian Stevedoring and General Contracting Company Pty Ltd v Dignan (1931) 46 CLR 73 o So long as the Parliament does not abdicate its legislative powers, it may delegate regulation making power to the other branches of government and confer wide discretionary powers on its executive officers to execute and maintain the laws of the Commonwealth
Australian Independence PAST: - As pointed out by sir owen Dixon in 1935 contrasting our const from the us: in one respect the Constitution of our Commonwealth was bound to depart altogether from its prototype. It is not a supreme law purporting to obtain its force from the direct expression of a peoples inherent authority to constitute a government. It is a statute of the British Parliament enacted in the exercise of its legal sovereignty over the law everywhere in the Kings Dominions. - The Cth Constitution is not a supreme law purporting to obtain its force from the direct expression of a peoples inherent authority to constitute a government. - It is a statute of the British Parliament. NOW: - The Statute of Westminster 1931 (UK) was adopted by Australia in 1942, confirming that the Commonwealth had full power to enact legislation having extraterritorial operation (s3). It also confirmed that the UK could not enact legislation with effect within Australia without the consent of the Commonwealth (s4). - The Australia Acts 1986 (Cth), reconfirmed that legislative sovereignty of the Commonwealth within Australia and the independence of the Australian States subject to the Constitution. The Act confirmed that the Parliament of the UK has no power to legislation in Australia (s1) and the States were given power to legislate with extraterritorial effect (s2(1)), and new powers, subject to the Constitution (s2(2)). Appeals to the Privy Council from the State Supreme Courts were also terminated (s11). Also confirmed that the states could enact legislation which was repugnant to the Imperial Parliament (s3(2)).
Popular Sovereignty The Preamble of the Constitution recites the agreement of the people of the colonies to unite in one indissoluble Federal Commonwealth. However, it needs to be recognised that the demands of many people were ignored or disregarded during the debates and polls preceding Federation. It can be concluded that the people today are Australian Citizens. The power of the people to change the Constitution under s128 and the continued acquiescence in its operation underpin the legally binging character of the constitution. The analogy of a contact or agreement between the people and their government is reinforced by cl 5 of the Cth of Australia Constitution Act 1900 (Imp)m which states: o This act, and all laws made by the Parliament of the Cth under the Constitution shall be binging on the courts, judges, and people of the every State and of every part of the Cth. Decline in the power of the UK means that the only source of legitimacy of the Constitution and of the powers exercised by the Cth is indeed, the consent of the governed and their acquiescence in the system prescribed by the Constitution. Citizens DJL v Central Authority (2000) o Aus mother wanted to keep child in Australia against American fathers wishes said child was a citizen so could return to Aus Caledonie v Cth (1988) and stay Robtelmes v Brenan (1906). Court rejected saying Constitution does not refer to the status of Citizen in relation to native born or naturalised people, citizen is subject of queen Note though singh v Cth (2004) Child born here to aliens is not an alien. Aliens Residents but not citizens and regulated under 51(xix) and state can decide who is te(2000) Breavington v Godleman (1988) o the compact between the Australian people, rather than the past authority of the UK parliament under the common law, [offers] a more acceptable contemporary explanation of the authority of the basic law of the Constitution. o The decline in the power of the United Kingdom in Australia and its removal by the Australia Acts means that the only source of the legitimacy of the Constitution and of the
Original Owners of Land Aboriginal people were not even counted as people in sensus until repeal of s17.
Section 51(xxvi) - Race Power The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect tothe people of any race for whom it is deemed necessary to make special laws. Amendment to s51(xxvi) - Constitution Alteration (Aboriginals) 1967 (Cth) other than the aboriginal race in any State deleted That part had been to allow states to handle aboriginals the way they saw fit. Mabo v Queensland (No 2) (1992) 175 CLR 1 Overturned past decisions and rejected the doctrine of terra nullius and recognized native title. Native Title not extinguished unless there be a clear & plain intention to do so. A Crown grant which is inconsistent with the right to enjoy a native title extinguishes native title: Aboriginal rights & interests not stripped away by operation of the CL on first settlement by British colonists, but by the exercise of a sovereign authority over land at 34 It was held that, assuming native title could be established in respect of the lands claimed, the State law extinguished native title and was in interference with property rights on racial grounds and was therefore inconsistent with the Racial Discrimination Act and in valid in accordance with s109 In Court Mabo recognised another source of law - traditional land law, distinct body in addition to CL of Aust In Aust, interest validly created by the Crown cannot be extinguished by the Crown without statutory authority Question as to whether Aboriginal Customary law can coexist alongside the Constitution where the Constitution is effectively sovereign Western Australia v Commonwealth (the Native Title Act Case) (1995) 183 CLR 373 WA gov sued cth to say native title act was unconstitutional and was invalid in WA. This was because aboriginals there had sued them saying wa leg was avoiding native title leg. The majority of court said that the common law is a body of created and defined by the courts. The history of the establishment of wa had not allowed crown to extinguish native title which had existed, and so native title was not rebutted. To rebut it it must have shown the crown clearly and plainly intended to extinguish all native title. So court held native title was valid under 51XXVI. Held that the Native Title Act was a valid law of the Commonwealth under s 51(xxvi) of the Constitution. At 422 At common law, a mere change in sovereignty over a territory does not extinguish pre-existing rights and interests in land in that territory. Although an acquiring Sovereign can extinguish such rights and interests in the course of the act of State acquiring the territory, the presumption in the case of the Crown is that no extinguishment is intended. That presumption is applicable by the municipal courts .. determining whether .. Kartinyeri v Commonwealth (the Hindmarsh Island Bridge Case) (1998) 195 CLR 337
Kruger v The Commonwealth (the Stolen Generation Case) (1997) 190 CLR 1 Number of aboriginal plaintiffs challenged the NT aboriginal ordinance;, which said chief protector of aboriginals was responsible for are taking of aboriginals. At this time aboriginals were not counted as people and this ordinance allowing people to remove aboriginal children from their families. The ordinance was aimed at getting rid of aboriginals by breeding aboriginals with whites, which led to people being rejected by both. The plaintiffs argues it cold not be laws with respect to territories in accordance to s122 because it interfered with their freedom of religion protected by s116 and infringed constitutionally provided freeded implied by law. Brennan CJ o The Constitutional validity of a law has nothing to do with its morality. The Constitution does not provide an express guarantee of equality before the law And the legislation was not invalid Dawson J at 158 o It may be observed that a degree of inequality was lacking in the free agreement (which is said to underlie the Constitution) in that the referendum expressing that agreement excluded most women and many Aboriginals Constitutional Reform
Short of civil disobedience or revolution, the ultimate expression of popular sovereignty is the exercise of the power of the people to change the Constitution, and this can only be done by referendum under s128 of the Constitution. Chapter VIII Alteration of the Constitution Section 128 requires the approval of a majority of electors in a majority of States for any change to the Constitution. This double majority requirement has proven to be a significant hurdle. The changes have been:
Federalism: Australia has a Federal system of government, with legislative power shared by the Cth and the States. Federal power over states: Concurrent powers and inconsistency of laws The distribution of legislative power in the Federal compact is in large measure worked out in s51 of the Constitution, which vests enumerated powers in the Cth. Many of these powers are enjoyed concurrently by the States, with the general residue of legislative power being left to the states: Attorney-General (Cth) v Colonial Sugar Co Ltd (1913) Conflicts which may arise are resolved by s 109 of the Constitution which renders a State law invalid to the extent of its inconsistency with Federal Law.
The Engineers Case: Rejection of state Reserved Powers and implied intergovernmental immunities. Until the engineers case the HC had developed and applied 2 doctrines that had a restrictive effect on the scope of Federal Constitutional Powers. o Implied intergovernmental immunities: To be a necessary implication from the Federal nature of Australian Government, that the Cth and the States were sovereign in the separate areas described by their respective Constitutions, and were therefore able to exercise their legislative power immune from the operation of the legislation fo the other: DEmden v Pedder (1904) o Doctrine of State reserved Powers: Cth could not exercise its legislative power in a way that interfered with the residual or reserved powers of the States falling outside the list of enumerated powers: R v Barger (1908) Engineers Case: confirmed that s 51 (xxxv) extended to enable the regulation of the States in their capacity as employers. The majority said that the conclusion that the Australian Federal System was based on a principle of Federal legislative supremacy that was reinforced by the presence of s 109 in the Constitution, which provides that State laws are invalid to the extent of their inconsistency with Federal Laws.
The implied autonomy and integrity of the States: the Melbourne Corporation Doctrine.
1.
Australia has a federal system of government; with legislative power shared by the Commonwealth and the States. Professor Harrison Moore defined federal government in the following terms: A federal government exists where, in a political community, the powers of government are distributed between two classes of organization a central government affecting the whole territory and population of the Sovereignty, and a number of local governments affecting particular areas and the persons and things therein which are so far independent of each other that the one cannot destroy the other or limit the powers of the other, or encroach upon the sphere of the other as determined by the Sovereign in the Constitution. Capital Duplicators Pty Ltd v Australian Capital Territory (1992) 177 CLR 248 Brennan, Deane and Toohey JJ at 274 The Constitution was enacted to give effect to the agreement reached by the people of New South Wales, Victoria, South Australia, Queensland, Tasmania, and Western Australia to unite in one indissoluble Federal Commonwealth. The Constitution is no ordinary statute: it is the instrument to fulfil the objectives of the federal compact.
To understand the dynamics of the relationship between the Commonwealth and the States it is necessary to consider the extent of the Commonwealths power in its concurrent fields. The nature of this relationship was considered in the Engineers case: Amalgamated Society of Engineers v The Adelaide Steamship Company Ltd & Ors (1920) 28 CLR 129. Rejection of State reserved powers and implied intergovernmental immunities doctrines. 1. the doctrine of implied intergovernmental immunities, was based on a proposition, said to be a necessary implication from the federal nature of Australian Government, that the Commonwealth and the States were sovereign in the separate areas described by their respective Constitutions, and were therefore able to exercise their legislative power immune from the operation of the legislation of the other.
2. A second and related doctrine was the doctrine of State reserved powers. Also said to be an implication necessarily drawn from the Constitution, the doctrine of State reserved powers was that the Commonwealth could not exercise its legislative power in a way that interfered with the residual or reserved powers of the States falling outside the list of enumerated powers. In the Engineers case the majority said that the conclusion that the Australian federal system was based on a principle of federal legislative supremacy was reinforced by the presence of s 109 in the
The States: Peace, order and good government Constitution Act 1902 (NSW), s 5 The meaning of the phrase peace, order and good government was considered in Union Steamship Co of Australia Pty Ltd v King (1988) 166 CLR 1. In that case, the New South Wales Compensation Court made an order under s 46 of the Workers Compensation Act 1926 (NSW) awarding King, an employee of Union Steamship on a ship registered in New South Wales, compensation for boilermakers deafness.
Union Steamship challenged the award on two grounds in the High Court that s 46 was not a valid law for the peace, welfare and good government of New South Wales. The High Court considered the meaning of the phrase peace, order and good government and confirmed, unanimously, that the power it describes is plenary. It would be almost impossible to use wider or less restrictive language than the phrase peace, welfare (or order) and good government. McCawley v R (1920) 28 CLR 106 per Lord Birkenhead, PC. The High Court based its interpretation of the phrase peace, order and good government on the doctrine of parliamentary supremacy (sometimes referred to as parliamentary sovereignty). The colonies, the predecessors of the States, inherited their legislative power from the Imperial Parliament at Westminster, which enjoyed plenary power. The measure of Imperial parliamentary power was described by A V Dicey, as the right to make or unmake any law whatever. When the States became constituent parts of the Commonwealth, they retained this power subject to the Constitution (see s 106) and any subsequent constitutional developments which expanded or conditioned the exercise of legislative power (including the Statute of Westminster, the Australia Acts and any State constitutional amendments). In a system of representative government, (in theory), elections ensure that parliamentary supremacy is not absolute because the exercise of legislative power can be checked by the will of the people. Leslie Stephen, one of Diceys contemporaries, said that: the power of the legislature is, of course, strictly limited. It is limited, so to speak, both from
4. The States have extraterritorial legislative power Section 2(1) of the Australia Act 1986 (Cth) states: 2. Legislative powers of Parliaments of States (1) It is hereby declared and enacted that the legislative powers of the Parliament of each State include full power to make laws for the peace, order and good government of that State that have extra-territorial operation. While s 2(1) confirms that the States have power to pass legislation with extraterritorial operation, there must be a connection between the State and the matter regulated. This requirement was explored in Pearce v Florenca (1976) 135 CLR 507. In that case, Florenca, a fisherman in Geraldton, Western Australia, was charged under State fisheries legislation with the offence of possession of undersized rock lobsters. The Western Australian law referred to Western Australian waters which were defined to include, among other places, the sea from high-water mark to three nautical miles from low-water mark. It was alleged that Florenca had committed the offence some one and a half miles off the coast of Geraldton. A Western Australian magistrate dismissed the charges on the basis that the Seas and Submerged Lands Act 1973 (Cth), a Federal law regulating Australias off-shore waters, rendered the Western Australian law inoperative in any area below the low-watermark of the coast of Western Australia. A threshold question was whether the State law was invalid. Gibbs J said that the test of State
Although the Engineers case confirmed the legislative supremacy of the Commonwealth, the Commonwealths powers, even their exclusive powers, do not operate automatically to reserve any topics of legislation to the Commonwealth. For example, while the Commonwealth enjoys exclusive power with respect to defence (see ss 51(vi) and 114 of the Constitution), the States may regulate matters which have an effect on defence matters where no Federal legislation overrides the State law to the extent of its inconsistency under s 109. This principle was confirmed in Pirrie v McFarlane (1925) 36 CLR 170. The Commonwealth has exclusive powers to make laws with respect to matters relating to naval or military defence. If the prohibition against driving a motor car without being licensed under State law is reasonably capable of interfering with the naval or military defence of the Commonwealth or of the States, the Commonwealth Parliament has ample power by legislation to confer on members of the Defence Force the right to drive a motor car in the performance of their duty without being licensed under State law. If Parliament chose, it can exempt them from the obligation to obey this provision of State law; but, in my opinion, it has not yet done so. No repugnant or inconsistent Commonwealth legislation stands in the way of the State law on this subject, and such law remains valid and binding in Victoria by virtue of sec 107 of the Constitution. The distribution of legislative power under the Commonwealth Constitution is not based on a concept of mutual exclusiveness; the powers granted to the Federal Parliament by Commonwealth
The justices of the High Court play a critical role in establishing the context within which constitutional decisions are made. The establishment of principles of constitutional interpretation and the developed methods of characterisation both embody assumptions about the meaning of language which provide an indication of the boundaries of permissible constitutional dialogue. The High Court The High Court of Australia is established by s71 of the Constitution, which states that: The judicial power of the Commonwealth shall be vested in a Federal Supreme Court, to be called the High Court of Australia [which] shall consist of a Chief Justice, and so many other Justices, not less than two, as the Parliament prescribes. HC is the ultimate appellate court, it interprets statutes of the Cth, States and Territories. It also develops the common law and makes constitutional law. Alfred Deakin stated that: The Constitution is to be the supreme law, but it is the High Court which is to determine how far and between what boundaries it is supreme. The federation is constituted by distribution of powers, and it is this court which decides the orbit and boundary of every power. Lange v ABC (1997) 146 ALR 96 o The Constitution displaced, or rendered inapplicable, the English common law doctrine of the general competence and unqualified supremacy of the legislature. It placed upon the federal judicature the responsibility of deciding the limits of the respective powers of State and Commonwealth governments.
Judicial discretion: law v policy The political consequences of judicial decision-making can give rise to a perception that the High Court makes political decisions, or legal decisions motivated by political views, rather than legal decisions. I was stated in OToole v Charles David Pty Ltd (1990) by Brennan J: Nowadays nobody accepts that judges simply declare the law; everybody knows that, within their area of competence and subject to the legislature judges make law. Judges recognise that policy decisions can play a decisive role in the shaping of legal principles: Precision Data Holdings Pty Ltd v Wills (1991) 173 CLR 167
Legalism Judges take an oath to the law held to be a very powerful position. One philosophy of judicial action which eschews/shuns consideration of the political consequences of decision-making is legalism. Dixon CJs, in his swearing in speech, held that judges adopt an approach of strict and complete legalism in constitutional cases on the basis that the Constitution placed the judicature in a passive role of merely declaring and applying the law. His Honour believed that the confidence of policies in the integrity of the process of constitutional adjudication could only be ensured if judges were able to demonstrate strict and complete adherence to principles of legal reasoning. South Australia v Commonwealth (1942) 65 CLR 373 o This case raised the politically charged issue of the relative powers of the Commonwealth and States (taxing power in this case, first at bankrupts, post war) o Latham CJ stated that the: controversy before the court is a legal controversy, not a political [one]. It is not for this or any other court to prescribe policy or to seek to give effect to any views or opinion upon policy. We have nothing to do with the wisdom or expediency of legislation. Such questions are for parliament and the people.
Compare this to, OToole v Charles David Pty Ltd (1990) 172 CLR 232 o Brennan J who stated Nowadays nobody accepts that judges simply declare the law: everybody knows that, within their area of competence and subject to the legislature, judges make law.
Judicial Restraint Dixon CJ: It is one thing for a court to seek to extend the application of accepted principles to new cases or to reason from the more fundamental or settled legal principles to new conclusions or to decides that a category is not closed against unforeseen instancesit is an entirely different thing for a judge who is discontented with a result held to flow from a long accepted legal principle, deliberately to abandon the principle in the name of justice or of social necessity or of social convenience.
Judicial Activism Kirby J: [An activist judge possesses]a special power with language that took its own momentumthe search for justice, adapting where necessary legal principles which appeared to stand in the way.
Principles of Constitutional Interpretation Principles of constitutional interpretation applied by the HC are diverse and sometimes seem to contradict each other. no one all embracing method of interpretation: SGH Limited v FCT (2002) per Gummow J. Literalism Literalism is the golden rule of statutory interpretation where the language of the Constitution is given its natural and ordinary meaning. The premise underlying this statement is that the meaning of a word, which might lead to a result in a case where the interpretation of constitutional language is at issue, can be arrived at through a discrete and objective process of analysis. Amalgamated Society of Engineers v The Adelaide Steamship Company Ltd & Ors (1920) 28 CLR 129 o The Engineers served a log of claims on a number of employers from a number of States concerning industrial disputes, which were refused. They then applied to the Commonwealth Court of Conciliation and Arbitration under the legislation which was purported to be authorised under s51 (xxxv) of the Constitution. The High Court was asked to consider the validity of the Federal Parliaments power under this section, which bound the State Government instrumentalities in their capacity as employers. This raised an important issue of constitutional interpretation, as a decision would obviously have a significant effect on the relationship between the Commonwealth and the States, as it would enable a Commonwealth body to regulate a State in its capacity as an employer.
Implications The determination of the meaning of the Constitution is not restricted to its express language (as suggested in the engineers case, as it can extend to implications which may be made. This is defined as a suggestion that the text or structure of the Constitution represents some truth or the existence of some fact that is not expressly stated in its language. West v Commissioner of Taxation (NSW) (1937) 56 CLR 657 o Dixon J noted that: Since the Engineers case, a notion seems to have gained currency that in interpreting the Constitution, no implications can be made. Such a method of construction would defeat the intention of any instrument, but of all instruments a written constitution seems to last to which it could be applied. I do not think that the judgment of the majority of the court in the Engineers case meant to propound such a doctrine.
Examples of constitutional implications The implied freedom to discuss political and governmental affairs: Lange v ABC (1997)
Even the literal approach endorsed by the majority in Engineers requires that an implication be
made relating to the existence of a natural or ordinary context within which the constitutional text is inter-preted. Implications can only be made on the grounds of necessity. In the Engineers case, Knox CJ, Isaacs, Rich and Starke JJ said that the golden rule of statutory construction required the Court to discover in the actual terms of the instru-ment their expressed and necessarily implied meaning: at 155.
It can be seen that any interpretation involves implications by the interpreter as to the meaning of the language, as there if no such thing as the full meaning of a word itself, for meaning depends on context; and implications are part of the logical structure of language. (Michael Detmold) However, implications can only be made of the grounds of necessity: Engineers Case. Ultimately, the boundary of what might be perceived to be necessary implications is set by the text of the Constitution. Ultimately the boundary of what might be perceived to be necessary implications is set by the text of the Constitution McGinty v Commonwealth (1996) 70 ALJR 200 o Brennan CJ remarked: No constitutional implication can be drawn from the Constitution which is not based on the actual terms of the Constitution, or on its structure.
Extrinsic material Implications cannot be drawn from extrinsic materials or circumstances: Australian Capital Television Pty Ltd v Commonwealth (1992) 177 CLR 106 Extrinsic materials and concepts can illuminate the meaning of the Constitution, but they cannot replace it: McGinty v Commonwealth (1996) 70 ALJR 200 Implications cannot be drawn from the nature of the society which operates the Constitution: cf McGraw-Hinds (Aust) Pty Ltd v Smith (1979) 144 CLR 633 at 670 per Murphy J. Note: Murphy was one who more so than Kirby took the view that the role of court was to do justice and so that you did need to look at the nature of society when interpreting the constitution.
Historical origins and Contemporary standards Connotation and Denotation of Constitutional Language:
The Common Law context In the Engineers case, the judges said that the Constitution should be read naturally in the light of the circumstances in which it was made, with knowledge of the combined fabric if the common law, and the statute which preceded it. Lange v ABC (1997) 145 ALR 96 o With the establishment of the Commonwealth of Australiait became necessary to accommodate basic common law concepts and techniques to a federal system of government embodied in a written and rigid constitution. o HC said constitution informs the development of the common law and vice versa. Common law developments therefore can effect the meaning of the constitution/
While the Constitution must be understood in its common law context, common law principles and concepts can develop over time, and this development can affect the meaning of constitution language. Cheatle v The Queen (1993) 177 CLR 541
OSullivan v Noarlunga Meat Ltd (1954) 92 CLR 565 o Norulunga meat a slaughterhouse operated in SA under a Cth meat exporters license. There were 2 Cth regulations in relation to this. Norulunga didnt hold a license under the state regs. Norulanga held the Cth regulations were inconsistent with the state ones so under 109 state laws were inconsistent. Cth regs were held to be valid under 51i. o Court said the cth possesses no power with respect to slaughterhouses, but does with respect to trade and commerce which gave it the right to legislate on condition and quality of meat which was going to be slaughtered. They said anything which will effect the export trade was a concern of the Cth, and that included anything at all that could effect the export market, including eg, packing, handling, quality etc. o So we can see with every express power there is an implied power so wide to make the express effective. This deference to the will of the Parliament is allied to the view that the Constitution is a document intended to sustain an evolving nations and provide the Commonwealth with the power to enact laws to meet changing and unforeseen circumstances. Where there is a conflict regarding the natural and ordinary meaning of the words in constitutional powers, the HC has indicated a preference for the broader or wider interpretation of the word or phrase. Jumbunna Coal Mine NL v Victorian Coal Miners Association (1908) 6 CLR 309 o It must always be remembered that we are interpreting the Constitution broad and general in its terms, intended to apple to the varying condition which the development of
R v Commonwealth Concilia-tion and Arbitration Commission; Ex parte Professional Engineers Association (1959) 107 CLR 208 Looked at meaning of word industrial for the purposes of s51(xxxv) Only refered to blue collar workers, didnt refer to teachers, professionals Court here rejected that and said that while initially it might have only meant blue collar, it now means employees and employers R v Coldham; Ex parte Australian Social Welfare Union (CYSS Case) (1983) 153 CLR 297 Court considered the meaning of industrial for the purposes of s51(xxxv) Again court found industrial means employee employer relations
Constitutional Guarantees The Court has said that it adopts a similar broad approach in relation to some constitutional guarantees. Bank of NSW v The Commonwealth (1948) 76 CLR 1 o Dixon J at 349 consistency with the principles upon which constitutional provisions are interpreted and applied demands that the paragraph should be given as full and flexible an operation as will cover the objects it was designed to effect. Although in relation to certain guarantees under eg s 41 voting , 80 trial by jury and 116 freedom to religion, court has taken a fairly narrow approach in interpreting the words(in relation to these express guarantees).
However, it should be noted that the Commonwealth exercises its legislative powers under ss 51 and 52 of the Constitution subject to the Constitution, including any express or implied limitations which arise from the Constitution. Therefore, the legislative power of the Commonwealth is restricted by the rule of
Characterisation Every Federal law must be supported by one or more of the Commonwealths enumerated (or exclusive) powers. 1. Identify the power or powers which the Commonwealth might invoke to support the Federal Law: must be supported by one of its enumerated power found in section 51. 2. The power(s) must be interpreted, and their scope ascertained: does a connection exist? Eg. Naralanga meats, the scope of the power was broad enough to cover packing. 3. The law which is said to be supported by the power(s) must be characterised in order to ascertain whether it is a law with respect to the subject matter of the identified power(s): a. There must be a sufficient connection between the law and the power(s) invoked to supports it. b. You must look at the constitution and the law itself with regard to the area. 4. Consider whether there are any express or implied constitutional limitations which might render the Commonwealth law invalid. Grain Pool of WA v Commonwealth (2000) Court considered whether legislation extending protection to plant breeders rights fell within s 51(xviii), the parliaments power with respect to, among other things, patents of inventions. The entire court concluded that the phrase should be given an ambulatory construction, and included plant breeders rights as a newly recognised type of invention. Whether a law falls within the head of constitutional power: Constitutional test is to be construed with all the generality which the words use admit. Consider whether the word(s) answers the description, and to disregard the purpose of the object. Whether the law in question must be determined by reference to the rights, powers, liabilities, duties and privileges which it creates. Practical as well as legal operation of the law must be examined to determine if there is a sufficient connection between the law and the head of power
This approach has been approved and applied by the High Court on numerous occasions.
Substance and Form: what parliament says a law does, and what the court say it actually does: The distinction between substance and form can be described as a distinction between what the law actually does (its practical operation and effect) and what the law says it does (its formal, legal operation). When a Federal law is characterised for constitutional purposes, the Court is not concerned with the substance of the law in the sense of its motive, purpose or policy. This principle was confirmed in: Murphyores Pty Ltd v Commonwealth (1976): o Concluded that the Fairfax principle was correct. Osborne v Commonwealth (1911) 12 CLR 321
A Question of Degree Sufficiency of Connection It must be demonstrated that the law in question is sufficiently connected or incidental to the power or powers invoked by the Commonwealth to support it, in order for it to be valid. Re Dingjan; Ex parte Wagner (1995) 183 CLR 223 o This case concerned industrial relations legislation and the validity of whether the Commonwealth can use the power of s51 (xx) to regulate industrial relations between a Tasmanian pulp company and its sub-contractors. o No question with regard to the first relationship. o However, whether a sufficient connection was present between the 2nd contractors and Tas pulp Tasmanian Pulp was the issue. o In reaching a decision, the High Court was divided in a 4-3 split, emphasising the difficulty of the sufficiency of connection. It was held that the relationship between the company SC
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Express and Implied Incidental Power Attached to every express grant of power is an implied grant of power wide enough to make the express grant effective: DEmden v Pedder (1904) Granall v Marickville Margarine Pty Ltd (1955) 93 CLR 55 o Every legislative power carries with it the authority to legislate in relation to acts, matters and things the control of which is found necessary to effectuate its main purpose, and thus carries with it power to make laws governing or affecting many matters that are incidental or ancillary to the subject matter.
Precedent Constitutional precedent enjoys support to the extent that it is persuasive. As the High Court is the ultimate Court of Appeal in Australia, it has the power to overturn and make common law rules, and may choose to change the common law when its principles are manifestly unjust or inappropriate: Dietrich v The Queen (1992) 177 CLR 292
It would be inconsistent with the conception of the Constitution as a document capable of meeting changing needs and unforeseen circumstances to insist on the rigidity of constitutional precedent. It should be noted that a decision of an equally divided Full Court of the HC is not a binding authority upon the court in subsequent cases. The Function of Precedent Perpetual Executors and Trustees v Federal Commissioner of Taxation (1949) 77 CLR 493 o The decisions of a superior court have a double aspect, they determine the controversy between the parties, and in deciding the case they may include a statement of principle in which it is the duty of that court and of all subordinate courts to apply in cases to which that principle is relevant. Continuity and coherence in the law demand that, particularly in this Court, which is the highest court of appeal in Australia, the principle of stare decisis should be applied, save in very exceptional cases.
Although Note reluctant to go against own decisions: Hughes & Vale Pty Ltd v New South Wales (1953) o Kitto J: [e]ven in constitutional cases it is obviously undesir-able that a question decided by the Court after full consideration should be reopened without grave reason
High Court is not limited by precedent but it has in the past restrained itself on that basis. Eg in the second uniform tax case though they thought they were wrong they followed precedent of first uniform tax case. As continuity and coherence in law is a desirable end, it has been said that a constitutional case will not be overruled simply on the basis that it is wrong. Queensland v Commonwealth (1977) 139 CLR 585 o Aicken J:
There is perhaps no other part of constitutional law which so well exposes tendencies towards judicial activism and restraint. Validity There is no presumption by the High Court that a law is constitutionally valid. However, a law is assumed to be valid unless a party to a legal dispute questions the validity of a statute: Re Judiciary and Navigation Acts (1921) 29 CLR 257 In this circumstance, the Court will restrict its judgment to the impugned provisions and will act on the assumption that every valid provision in the statute would continue to operate as the Parliament intended, unless the striking down of that provision leaves behind legislation that is altogether different or different in substance to the original law: Pidoto v Victoria (1943) 68 CLR
The Commonwealths supreme legislative powers do not oust State laws except by their operation and application through legislation, and then only if the State laws are invalid to the extent of their inconsistency under s109. The position of the States compared to the Commonwealth: Chapter 1 and the States; Preamble of the Constitution describes the intention of the people who wrote the Constitution and the electors of the colonies to form an indissoluble Federal Commonwealth. Chapter 1, Pt V and the States: Concurrent Powers: Much of the legislative power of the Cth is described in Chap 1, Pt V. Broadly speaking there are 2 types of legislative power (concurrent and Exclusive): o Concurrent: Listed in s 51, however State law can operate in a field left vacant by Federal law. Although the Engineers case confirmed the legislative supremacy of the Cth, the Cths concurrent powers do not operate automatically to reserve any topics of legislation to the Cth. This principle was confirmed in Pirrie v McFarlane (1925) McFarlane was charged with driving on a public highway without a Victorian licence. As a member of the Air Force, he argued that he was immune from the State laws regulating traffic and licensing on the basis that he was employed by the Commonwealth and engaged in Commonwealth business at the relevant time. At trial this argument was accepted and the doctrine of intergovernmental immunities was applied. On appeal to the High Court, this same argument was raised and it was added that s52 gave the Commonwealth exclusive power with respect to the regulation of defence public servants, and therefore no s109 inconsistency could arise State laws were to be interpreted or read down as not applying to soldiers on duty. The High Court rejected McFarlanes argument and held that the implied intergovernmental immunities had to be read in light of the Engineers
Federalism Australia has a federal system of government, with legislative powers shared by the Commonwealth and the States. The preamble to the Constitution refers to Australia as an indissoluble Federal Commonwealth. There are references to the federal nature of the Constitution throughout its text in relating to its federal nature including, notably, in ss 1, 61 and 71, the provisions that confer legislative, executive and judicial power on the three organs of Commonwealth Government. As defined by Harrison Moore: A federal government exists where, in a political community, the powers of government are distributed between two classes of organization a central government affecting the whole territory and population of the Sovereignty, and a number of local governments affecting particular areas and the persons and things therein which are so far independent of each other that the one cannot destroy or limit the powers of the other, or encroach upon the sphere of the other as determined by the Sovereign in the Constitution. Exclusive powers of the Commonwealth The Commonwealth enjoys exclusive power which gives it special immunity from the operation of State laws and enjoys a special measure of autonomy from State laws when it exercises exclusive powers. This means that a State law has no force in a place that is acquired by the Commonwealth: R v Phillips The Commonwealth has exclusive power to regulate its public service, the seat of government, and Commonwealth public places (s90) The Commonwealth has exclusive power to levy customs duties and excise duties (s114) The Commonwealth can enjoy exclusive power to regulate defence (s115) The States shall not coin money, making the currency power (s51(xii) an exclusive power) Leading case on s52: Worthing v Rowell and Muston Pty Ltd (1970) 123 CLR 89 o Whether Cth state OH&S legislation applied within a Royal Australian Air Force Base, a Cth place. (s52)
Commonwealth Places (Application of Laws) Act 1970 (Cth): The effect of the above decision has been reversed by the Commonwealth Places (Application of Laws) Act 1970 (Cth), which ensures that ordinary laws of the States, such as motor traffic regulations, continue to apply in Commonwealth places in the States. Federal powers that are, for all intents and purposes, exclusive to the Cth: In addition to those powers which are expressly exclusive, the language of some of the Commonwealths concurrent legislative powers can give rise to implications that the power over the given topic is, for all intents and purposes, exclusive. (s51) (iv) (xix) (xxx) (xxxi) (xxxvi) (xxxix)
Borrowing money on the public credit of the Commonwealth Naturalization and aliens The relations of the Commonwealth with the islands of the Pacific The acquisition of property on just terms from any State or person for any purpose in respect of which the Parliament has powers to make laws Matters in respect of which this Constitution makes provision until the Parliament otherwise provides Matters incidental to the execution of any power vested by this Constitution in the Parliament or in either House thereof, or in the government of the Commonwealth, or in the Federal Judicature, or in any department or officer of the Commonwealth. Power there to ensure cth has necessary incidental powers to use powers that it has been granted.
None of these powers could be exercised without the active involvement of the Commonwealth as a political, legislating entity. Federal powers containing express or implied restrictions that enable the State to exercise a certain measure of exclusive power with respect to some topics: A number of Federal powers can be described in this way. So, for example, s 51(i), the trade and commerce power, refers to trade and commerce with other countries and among the States. The subsection does not confer a general power to regulate trade and commerce. This does not mean that the Commonwealth may not use some other power, such as s 51(xx), to the same end. For example: banking power s51(xiii) contains an express restriction o other than state banking restriction doesnt just operate when Cth regulates banking under this power but under any power s51 (xx) foreign, trading or financial corporation Could the Cth govt use s51 (xx) to regulate states to get around s51 (xiii)? NO
Federal power over the States The distribution of legislative powers in the federal compact is in large measure worked out in s51 of the Constitution, which vests enumerated powers in the Commonwealth. Many of these powers are enjoyed concurrently by the States, with the general residue of legislative power being left to the States. Conflicts of laws between the States and the Commonwealth are resolved by s109. Amalgamated Society of Engineers v The Adelaide Steamship Company Ltd & Ors (1920) 28 CLR 129 The nature of the relationship regarding concurrent powers of the Cth and States was considered. o The question before the court was could the commonwealth regulate the states in their capacity as employers? o Up until this point, the High Court had applied two presumptions in the interpretation of the Constitution that restricted the power of the Commonwealth: Doctrine of Implied Intergovernmental Immunities Commonwealth and the States were sovereign in the separate areas described by their respective Constitutions, and were therefore able to exercise their legislative power immune from the operation of the legislation of the Doctrine of (Implied) State Reserved Powers The Cth could not exercise its legislative power in a way that interfered with the residual or reserved powers of the States falling outside the list of enumerated powers. It was therefore necessary for the High Court to have regard to the powers reserved to the States before the ambit of the Commonwealth power could be ascertained. o The High Court rejected these doctrines on the basis that they were grounded on implications formed on a vague, individual spirit of the compact and which did not accord with the words of the constitutional text. o It was held that the States only retained any residual power which was left over after the Federal legislative powers were given a wide and literal interpretation. This conclusion was based on a consideration of Chapter V of the Constitution and also ss 107 and 109. o They said the Constitution should be read literally. There is nothing in the Constitution to say that commonwealth cannot regulate states in their capacity as an employer. o The principle that the Australian federal system was based on federal legislative supremacy was reinforced by the presence of s109.
The implied autonomy and integrity of the State: The Melbourne Corporation doctrine: The High Court recognised that there is an implication which necessarily arises from the federal structure of Government contemplated by the Constitution. The Commonwealth may not exercise its powers to single out a State or States or threaten their capacity to function as independent governing entities.
Austin v The Commonwealth (2003) 215 CLR 195 o They held an action against cth tax that was imposed on super of state judges. The legislation treated State judges differently from other high income earners and federal judges, and to their practical disadvantage. It interfered with arrangements made by States for the remuneration of their judges, and had the capacity to affect the recruitment and retention of judges to perform an essential constitutional function of the State. The legislation discriminated against State judicial officers in a way that interfered in a significant respect with States' relationships with their judges. o Court held the cth law was invalid. o Even though in engineers they did away with two implications protective of states. In this case the HC said there are still protections in the constitution for the state, and that Cth and they cant discriminate against each other and stop each others functions.
The constitution contemplates that the sates and cth can cooperate and agree. s51xxxvii allows legislative rights to be referred to Cth by Parliament or Parliaments of any state. Eg also reference of power over child custody issues. Cth had power to leg over children which were from married parents but not those which werent, this was referred to them by states. Eg Corporations law is based on states and cth cooperation. Note however states cant refer their functions to Cth executive (r v Hughs) or judiciary(Re Wakim; Ex parte McNally (1999)
Chapter III of the Constitution and the States: The Cth parliament has specific powers to vest Federal Jurisdiction in State Courts. The inclusion of State courts in Ch III limits their capacity to exercise powers and functions alien to the principles that underlie the separation of judicial power affected by that chapter: Kable v Director of Public Prosecutions (1996) 189 CLR 51. Kable was convicted of the manslaughter of his wife and imprisoned. Upon his release, the New South Wales Parliament enacted legislation which ordered his further detention. The object of the Act was to protect the community by providing for the preventive detention of Gregory Wayne Kable
Contrast: However, the extent to which State parliamentary power is qualified by Ch III of the Constitution appears to be quite limited. Fardon v Attorney General (QLD) [2004] Majority of the HC distinguished Kables Case where QLD legislation, the Dangerous Prisoners (Sexual Offenders) Act 2003, authorised the Supreme Court of QLD to incarcerate members of a class of prisoners who the court predicted would be dangerous. The imprisonment of a person, not for what they have done, but what they might do, represents a significant departure from traditional judicial functions and processes, but was nonetheless upheld. The decision also appears to establish that a person may be punished twice for previous crimes (unless it is accepted that prison is no longer punitive)
Grants The Federal Parliament is authorised to grant financial assistance to any State on such terms and conditions as the Parliament thinks fit: s 96. Authority to make such grants is limited to 'a period of 10 years after the establishment of the Commonwealth and thereafter until the Parliament otherwise provides'
3 types of grants that gov make: General revenue grants o Money paid to states to compensate them for loss of income tax revenue o Source of majority of income for the states Special assistance grants o Given to smaller states for assistance Specific purpose grants o Where cth sais what money is to be spent on With these the Cth are able to get control on areas beyond their legislative power. A non-coercive power The Commonwealth Constitution allows the Federal Parliament to offer an inducement to a State, either to exercise its powers or refrain from exercising its powers.: South Australia v Commonwealth (Uniform Tax Case (No 1)) (1942) 65 CLR 373 at 417 per Latham CJ. The Parliament can offer financial assistance to a State to induce the State to construct designated public roads: Victoria v Commonwealth (Federal Roads Case) (1926) 38 CLR 399 And the Federal Parliament can offer financial assistance to a State to induce the State to refrain from imposing and collecting State income tax: South Australia v Commonwealth (Uniform Tax Case (No 1)) (1942) 65 CLR 373 No State can be placed under a legal obligation to accept a grant of financial assistance. Victoria v Commonwealth (Uniform Tax Case (No 2)) (1957) 99 CLR 575 However, any State that accepts a grant of financial assistance must abide by the terms and conditions attached to the grant, South Australia v Commonwealth (Uniform Tax Case (No 1)) (1942) 65 CLR 373; In so far as compliance with the terms and conditions does not involve the State in a breach of the law. Victoria v Commonwealth (Uniform Tax Case (No 2)) (1957) 99 CLR 575 GST has been a type of tax meant to get money back to states and all GST raised in each state is meant to back to the states. This is why some states like NSW still rely on other fund raising methods as well as cth. Because of wide breadth of s96 powers there is not guarantee that the grants will continue. The power to tax and then grant is the power to destroy as was said by latham in first uniform tax case.
Grants may discriminate or give preference Deputy Cmr of Taxation (NSW) v W R Moran Pty Ltd (1939) 61 CLR 735 o Concerned tax on flower millers which was used to grant to wheat growers. Problem was that Tasmania had flower millers but not wheat growers, so cth made a grant to flower growers for tas. It was argued that breach of s99 which is no discrimination between states. Court dismissed that. o Commonwealth Constitution s 96 enables the Federal Parliament to adjust inequalities between States which may arise from the application of uniform non-discriminating federal laws to the States and is not limited by any prohibition of discrimination per Latham J Grants power subject to other limits on Commonwealth power The Federal Parliament may grant money to a State to assist the State in the resumption of land on other than just terms: A requirement expressed in Commonwealth Constitution s 51(xxxi). Pye v Renshaw (1951) 84 CLR 58 In this case Cth wanted to obtain some property but didnt want to do it directly coz they were limited by 51xxxi. They instead gave grant to state to get the state to take possession of it compulsorily as states do not have the just term limitation. It was allowed there but HC has put limitations. This makes a mockery of the just terms but the only limitation to it is that they cant force states to accept grant, though its unlikely that they wouldnt. However, it appears that the power is subject to other express restrictions on the Commonwealth's legislative power. For example, there is indication that laws made by the Federal Parliament under Commonwealth Constitution s 96 will be subject to the prohibitions in s 116 on the Commonwealth establishing any religion and restricting the free exercise of religion: Attorney-General (Vic); Ex rel Black v Commonwealth (DOGS Case) (1981). In 1981 there was legislation passed to give states power to collect income tax but no state took up the opportunity to that as they knew it would be political suicide if they did. Legislative powers of the States Peace, order and good government
Provided that all Bills for appropriating any part of the public revenue, or for imposing any new rate, tax or impost, shall originate in the Legislative Assembly
Union Steamship Co of Australia Pty Ltd v King (1988) 166 CLR 1 o King was awarded compensation under the Workers Compensation Act 1926 (NSW) and it was argued by Union Steamship that it was not a law for the peace, order and good government also that it was inconsistent with Cth law. o The High Court unanimously held that Peace, order and good government describes a power that is plenary (not subject to limitation or exceptions. o The test of state leg powers was the existence of a relevant connection between circumstances which law operated and the state. This should be liberally applied so even a remote connection will suffice. So the fact that the ship was registered in NSW was a sufficient connection with NSW to apply NSW laws to the ship and so it justified app of NSW workers comp leg to seamen and so he was entitled to compo. o Court also looked at s109 and said state law wasnt inoperative because the two legislations provided for coexistence of the two acts. The intentions of the act was to ensure there was not double compensation(applying under both) so as parliament has power to apply under that state it is required to apply for some extraterritorial app notwithstanding s96 which sais states can make extraterritorial laws. Note: extraterritorial power also in aus acts.
Parliamentary Supremacy in the States: The phrase peace, order and good government is based on the doctrine of parliamentary supremacy. However, this is said to operate subject to the Federal Constitution and its separation of powers. Kable v Director of Public Prosecutions (NSW) (1996) 189 CLR 51 o Kable was convicted of the manslaughter of his wife and imprisoned. Upon his release, the New South Wales Parliament enacted legislation which ordered his further detention. o It was argued that the statute was beyond peace, order and good government; it infringed common law rights which were so fundamental that they could not be overturned by any legislature; it was inconsistent with the separation of powers embodied in the New South Wales constitution; and finally on the basis that the law was inconsistent with the requirements of Chapter III of the Commonwealth Constitution. o A majority of the Court held that the power of the States to legislate for the peace, order and good government was plenary and that they are not words of limitation. o However, the law was struck down on the basis that it was inconsistent with Chapter III of the Constitution.
Limits to state extraterritorial power Although there are limits to the extraterritorial power of the States, it appears that once a sufficient connexion has been established, the State enjoys plenary power with respect to the matter regulated. Broken Hill South v Commissioner of Taxation (NSW) (1937) 56 CLR 337
The extent of State power to regulate the Commonwealth State laws can affect the Commonwealth in its ordinary capacities that is, when it engages in transactions as an ordinary legal person. E.g. a lessor of property. Commonwealth v Bogle (1953) 89 CLR 229 o The Commonwealth was acting as a lessor of property and it was held that in this case State legislation applies to the Commonwealth. The rule of law operates. o State Parliament has no power over the Commonwealth. The Commonwealthis all intents and purposes, a juristic person who is subjected either by any State Constitution or by the Commonwealth Constitution to the legislative power of any State Parliamentthe Commonwealth may, of course, become affected by State laws.
expect to find either government legislating for the other. But supremacy, where it exists, belongs to the Commonwealth and not to the States
o Approved in Cigamatic
Re Residential Tenancies Tribunal of New South Wales & Ors; Ex Parte Defence Housing Authority (1996) 146 ALR 495 o The Defence Housing Authority, an agency set up under Federal statute to provide housing for the defence forces, argued that as a federal agency, they were protected from the operation of State residential tenancies legislation which allowed their landlord to come and do inspections on the defence base.. o It was held by the majority re explaining what cigamatic meant that: there is nothing which would suggest that the Crown or its agents enjoy any special immunity from the operation of laws of general application, State or federal. Indeed, the contrary is affirmed. The rule of law requires such a resultWhile the principle that executive power must be exercised in accordance with the law applies to both Commonwealth and State government, the Commonwealth enjoys a paramount position within its areas of legislative competence because of s109 of the Constitution.
Within the scope of its grant of legislative power, the Parliament of the State is no less supreme than the Parliament of the Commonwealth (although State legislation which is inconsistent with Commonwealth legislation is inoperative under s109 of the Constitution). This section indicates that where it exists, supremacy belongs to the Commonwealth: Engineers case
Inconsistency of Laws
First, how is law defined for the purposes of s 109? Second, the requirement that s 109 laws must be both valid and operative before a question of inconsistency can arise. Thirdly, the various tests of inconsistency. Fourth, the concept of repugnancy of laws, and its operation in the self-governing Territories. Finally, the consequences of a determination of inconsistency determination will be considered. Section 109 of the Constitution reads: 109. Inconsistency of laws When a law of a State is inconsistent with a law of the Commonwealth, the latter shall prevail, and the former shall, to the extent to the inconsistency, be invalid. Section 109 confirms the legislative supremacy of the Federal Parliament over the State Parliaments within Australia with respect to those concurrent powers enjoyed by the Commonwealth and the States. Section 109 requirements Requirement of valid laws Before s109 can operate, it is necessary to demonstrate that there is a Federal Act and a State Act in conflict. If one or both of the laws are determined to be invalid, there can be no s109 inconsistency. Requirement of operative laws Similarly, if one or both of the relevant State and Federal laws do not operate in the circumstances of the case, there can be no s109 inconsistency.
Applying the Test It is necessary to ascertain: 1. Whether the Federal law evinces (demonstrates) an express or implied intention to cover the field; 2. If so, what is the field which has been covered? Express intention to cover the field For example, a Federal law may state that: Where a State law, or an order, award, decision or determination of a State Industrial Authority, is inconsistent with, or deals with a matter dealt with in a (Federal) award, the latter prevails and the former, to the extent of the inconsistency, or in relation to the matter dealt with, is invalid.
So long as the relevant Federal law was constitutionally valid, it would not be open to the objection that it trenches on State functions unless presumably, it infringed the implied prohibition on Federal power recognised in the Melbourne Corporation. Express intention not to cover the field In some circumstances, the Federal law may expressly contemplate concurrent State legislation. R v Credit Tribunal; Ex parte General Motors Acceptance Corporation (1977) 137 CLR 545 o equally a Commonwealth law may provide that it is not intended to make exhaustive or exclusive provision with respect to the subject with which it deals, thereby enabling State laws, not inconsistent with Commonwealth laws, to have operation. All that it does is to make it clear that the Commonwealth law is not intended to cover the field, thereby leaving room for the operation of such State laws as do not conflict with Commonwealth law.
However, this does not remove direct inconsistency. Also, this may operate prospectively (future orientated) and not retrospectively. Viskauskas v Niland (1983) 153 CLR 280 o The High Court held that certain provisions of the Anti-Discrimination Act 1977 (NSW) were inconsistent with the Racial Discrimination Act 1975 (Cth). Therefore, after Viskauskas v Niland, the Federal Act was amended to provide that the Act is not intended and shall be deemed never to have been intended, to exclude or limit the operation of a law of a State or Territory. The University of Wollongong v Metwally (1984) 158 CLR 447 o The question was raised whether the amendments after Viskauskas v Niland were constitutionally valid. o The High Court held that the power of the Commonwealth to legislate with retrospective effect was limited to the extent that it could not deny the operation of s109 in respect of a conflict of State and Federal laws which had occurred in the past. o Gibbs CJ statedthe Parliament cannot exclude the operation of s109 by providing that the intention of the Parliament shall be deemed to have been different from what it
Absence of elaborate, extensive and detailed federal provisions may result in: Finding no inconsistency: T A Robinson & Sons Pty Ltd v Haylor (1957) 97 CLR 177 o In this case the Federal award ignored long service leave and it was held that the State law operated where the field was left vacant by the Federal award. o The existence of a federal law area is not something to be assumed, but it is only demonstrated by the existence of a valid and operative law.
OR, A finding of an intention to cover the field: A broad federal provision may also indicate an intention to cover the field, even in the context of legislation which makes detailed provision in relation to one topic, but is sparse in its treatment of another. Australian Broadcasting Commission v Industrial Court of South Australia (1977) 138 CLR 399 o The High Court held that the South Australian provisions were inconsistent with federal provisions, in spite of the fact that the Federal law made detailed provision in respect of the appointment, terms and conditions of permanent employees, but not temporary employees. It was acknowledged that although the provisions dealing with temporary employees was less detailed and comprehensive, an intention to cover the field could nonetheless be discerned.
Inconsistency of penalties will not necessarily result in inconsistency of laws McWaters v Day (1989) 168 CLR 289 o There was an inconsistency between the penalties of Queensland law and Federal defence force disciplinary law for driving under the influence of alcohol. o it is true that a difference in penalties prescribed for conduct prohibited by Commonwealth and State laws has been held to give rise to inconsistency between those laws for purposes of s109Equally, a difference between the rules of conduct prescribed by Commonwealth and State laws might give rise to such inconsistency. But the mere fact that such differences exist is insufficient to establish an inconsistency in the relevant sense. It is necessary to inquire whether the Commonwealth statute, in prescribing the rule to be observed, demonstrates an intention to cover the subject-matter to the exclusion of any other law o It was held that the Federal Act is supplementary to, and not exclusive of, the ordinary criminal law, and it follows that it does not deal with the same subject matter or serve the same purpose as laws forming part of the ordinary criminal law.
Accordingly, a difference in penalties under Federal and State laws attaching to substantially the same conduct does not necessarily result in a s109 inconsistency. It appears that it is necessary to demonstrate that the Federal law demonstrated an intention to cover the field and exclude any other law for an inconsistency to occur.
The contradictory laws test R v Brisbane Licensing Court; Ex parte Daniell (1920) 28 CLR 23 o Federal electoral law provided that on federal polling days, no referendum or vote of the electors of any State or part of State could be taken. A local vote was taken in Brisbane on the date of a federal poll, and this was challenged on the basis that it was illegal under Federal law. o The Court held the vote in Brisbane to be illegal. Colvin v Bradley Bros Pty Ltd (1943) 68 CLR 151 o It was held that the purported subject matter of the law is irrelevant to the determination of s109 inconsistency if it can be shown that the Federal law prescribes certain rights, privileges, immunities or obligations which are removed by State law. o Hence they contradict one another. o Here the Federal law permitted what the State law prohibited, so there was a s109 inconsistency Mabo v Queensland (1988) 166 CLR 186 o The High Court held that, assuming native title could be established in respect of the lands claimed, the State law extinguished native title, and was to this extent inconsistent with provisions of the Federal law prohibiting racial discrimination and in particular, interference with property rights on racial grounds.
The impossible to obey both laws test Blackley v Devondale Cream (Vic) Pty Ltd (1968) 117 CLR 253 o Federal award was lower than State award. Devondale Cream paid the employee (MacDonald), the lower wage. o Barwick CJ said obedience to the one, the award, is disobedience to the other, the determination. Payment by the respondent of the wages conforming to the award involved it in disobedience of the State provisions. Swift Australian Company (Pty) Ltd v Boyd Parkinson (1962) 108 CLR 189 o Swift was prosecuted for not holding a license under State law, while they were registered under Federal meat export regulations. Swift argued that it would be practically impossible to obey both laws.
Invalid means inoperative Butler v Attorney-General of Victoria (1961) 106 CLR 268 o (The federal provisions) ceased to have validity when they could no loner be sustained by the defence power. Thereupon (the State provisions) came again into operation. It had never lost its place in the Victorian statute book. It had merely been, for the time, invalid that is to say, suspended, inoperative and ineffective because the Commonwealth statute had entered into occupation of the whole field. But when the Commonwealth law vacated the field the State law was again in charge.
Self-Governing Territories The Territories power enables the Commonwealth to set up self-governing Territories. Berwick Ltd v Gray (1976) 133 CLR 603 o Leg said that income of Norfolk islander was non income taxable unless benefit of it went to someone not on that island. Berwick ltd was convicted of not lodging income tax returns, they said they were part of Norfolk island and that section saying you have to live on island was invalid. court said: Once a sufficient connexion is shown to exist between a law and a territory the power conferred by s. 122 is a plenary power and is not subject to any limitation that any moneys raised by the law should be expended exclusively for the purposes of that territory. Section 51 (ii.) of constitution, so taxation power applies to external territories in general and in particular to Norfolk Island which in view of its history is to be regarded as part of the Commonwealth. o [The power conferred by s122] is sufficiently wide enough to enable the passing of laws providing for the direct administration of a Territory by the Australian Government without separate fiscus; yet on the other hand it is wide enough to enable Parliament to endow a Territory with separate political, representative and administrative institutions, having control of its own fiscus.
The Northern Territory and the Australian Capital Territory enjoy self-government under the Northern Territory (Self-Government) Act 1978 (Cth) and the Australian Capital Territory (Self-Government Act 1988 (Cth) respectively.
Extraterritorial Operation Laws supported by s122 may have extraterritorial power. Lamshed v Lake (1958) 99 CLR 132 o Lamshed, a South Australian policeman, laid a complaint against Lake, a truck driver from the Northern Territory who was not licensed under South Australian road transport legislation. Lake argued that he was travelling from Adelaide to Alice Springs and that Federal legislation governing the Territory provided that trade, commerce and intercourse between the Territory and the States be absolutely free. Lamshed argued that laws made under s122 could not have direct operation outside the Territory concerned. o The High Court held that s122 is a power given to the National Parliament of Australia as such to make laws for, that is to say, with respect to, the government of the Territoryonce the law is shown to be relevant to that subject matter, it operates as binding law of the Commonwealth, wherever territorially the authority of the Commonwealth runs. Therefore when the Commonwealth uses its territories power to pass a law, that law can override State legislation. o Dixon J The relationship between the Territories and the Commonwealth is different to the relationship between the States and the Commonwealth. Laws enacted by the Commonwealth which are supported by s122 are laws of the Commonwealth.
A plenary approach? The question whether any Federal constitutional provision limits the scope of the Territories power depends on the construction of that provision. However, it is clear that the Territories power is not restricted by any provision within s51, which is concerned with the relationship between the Commonwealth and the States.
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Limitations by other provisions in the Constitution? Capital Duplicators Pty Ltd v Australian Capital Territory (No 2) (1992) 177 CLR 248 o Cap duplicators bought action alledging they were holder of licence under business franchise act. They were in fact distributors of x rated videos. They said they paid licensing fees which they shouldnt have as fees were excises and couldnt be charged. o The scope of s122 may be qualified by other provisions in the Constitution. Although the territories power has been said to be a disparate non-federal matter, it is necessary to adopt an interpretation which will treat the Constitution as one coherent instrument for the government of the federation, and not as two constitutions, one for the federation and one for the territories. It would therefore be erroneous to construe s122 as though it stood isolated from other provisions of the Constitution which might qualify its scope.
Other Limits The constitutional guarantee of freedom of interstate trade, commerce and intercourse among the States in s92 has been given territorial application in both the Northern Territory and the Australian Capital Territory: Self-Government Acts The Commonwealth Constitutions power to compulsorily acquire property also applies to the Territories, guaranteeing just terms compensation in the event of an acquisition under s51 (xxxi): Self Government Acts. The implied freedom of communication restricts the legislative power of the Territories: Lange v ABC (1997) 189 CLR 520
Section 51 (i) of the Constitution provides: 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: (i) Trade and commerce with other countries, and among the States The words with other countries and among the states, does not appear to enable the Federal Parliament to regulate purely intrastate trade and commerce in a direct way. However, this limitation is more apparent than real, and can be circumvented in a number of ways. First: s 51(i) is one of a number of overlapping powers that deal with topics that touch and concern trade and commerce. o S51(v) postal, telegraphic, telephonic, and other like services; o S51(ix) quarantine; o S51 (xii) currency, coinage, and legal tender; o S51 (xiii) banking, other than State banking; also State banking extending beyond the limits of the State concerned, the incorporation of banks, and the issue of paper money; o S51 (xiv) insurance, other than State insurance; also State insurance extending beyond the limits of the State concerned; o S51 (xvi) bills of exchange and promissory notes; o S51 (xvii) bankruptcy and insolvency; o S51 (xviii) copyrights, patents of inventions and designs, and trade marks; o S51 (xx) foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth Second: The Cth can use powers over subject matters that are less obviously commercial in character and adapt them to effect policies that circumvent the apparent restrictions on the regulation of intrastate trade and commerce. E.g. o Use s 51 (vi) the naval and military defence of the Commonwealth and of the several States, and the control of the forces to execute and maintain the laws of the Commonwealth to seize international trading operations of terrorists o Use s 51 (xix) naturalization and aliens; to regulate foreign investment o Use s 51 (xxxv) conciliation and arbitration for the prevention and settlement of industrial disputes extending beyond the limits of any one State; to regulate industrial relations with partnerships. o Use s 122 (Territories power) to regulate T&C within territories, between territories, between territories and states and overseas o The Cth can also use the T&C power to effect non-commercial policies.
This power has been used to regulate a wide variety of activities, including import and export trade, trade practices, the operation of Federal Government business enterprises, the promotion and protection of international trade, international shipping, aviation, and inter-State road transport. The meaning and scope of the words trade and commerce First ascertain the meaning then move to the scope of the power as a whole. Harmonious Interpretation: The High Court has confirmed that the words trade and commerce mean the same in s92 and s51(i): James v The Commonwealth (1936) 55 CLR 1 and is to be read in harmony with other parts of the Constitution. Give the words their popular meaning: W & A McArthur Ltd v Queensland (1920) 28 CLR 530 o Judges urged that a practical approach to the words was to be adopted as they are expressions of fact. They suggested that the phrase referred to all commercial arrangements of which transport is the direct and necessary result form part of trade and commerce. The mutual communings, the negotiations, verbal and by correspondence, the bargain, the transport and delivery are all, but not exclusively, parts of that class of relations between mankind which the world calls trade and commerce.
Transport for reward is a type of T&C: Australian National Airways Pty Ltd v The Commonwealth (1945) 71 CLR 29 (ANA case) o The constitutional validity of the Australian Airlines Act 1945 was challenged on the grounds that the trade and commerce power did not give the Commonwealth power to undertake trading or commercial activities, and that the trade and commerce power did not extend to authorise the interstate transportation of persons who are not themselves engaged in trading activities (I.e. Transport which was not undertaken for reward.) o The High Court held that s51(i) allowed the Federal Government to incorporate a company to conduct an interstate export trading and commercial business, which included inter-State transportation certainly when conducted for profit.
T&C extends to a wide rand of activities: Bank of New South Wales v Commonwealth (1948) 76 CLR 1
A power to regulate navigation, shipping and railways the property of any State Section 98 confirms that s 51(i) extends to enable the regulation of navigation, shipping and railways the property of any State.
Trade and Commerce with other countries This phrase (with other countries) is wide enough to enable the Commonwealth to prohibit, regulate and control the importation and exportation of goods for any purpose: Murphyores Inc Pty Ltd v The Commonwealth (1976) Murphyores Inc Pty Ltd v The Commonwealth (1976) 136 CLR 1 o The High Court considered the constitutional validity of Federal customs regulations which prohibited the export of mineral sands without a permit from the Minister for Minerals and Energy. Murphyores was a sand-mining company and argued that s51(i) did not enable the Federal Parliament to prohibit export trade on environmental grounds. o The High Court rejected this argument based on dual and multiple characterisation, confirming that the Governments power was plenary.
Trade and Commerce among the States An inference can be drawn from the language of s51(i) that the Commonwealth has no power to regulate intrastate trade directly, and distinguished from the regulation of other topics which may have an incidental effect on trade. This conclusion does not rest on the application of the doctrine of State reserved powers but on a literal interpretation of the words. Air Navigation
Airlines of NSW Pty Ltd v The State of New South Wales & Anor (No 2) (1965) 113 CLR 54 o The limits of the Commonwealths power to secure a uniform system of air navigation regulation by using s 51(i) were made clear o One of the issues raised in this case was whether s 51(i) could support Federal air navigation regulations enabling the Commonwealth to license intrastate air service operators using intrastate airspace, and also to authorise air service operators to offer intrastate services, on the basis that this was necessary for the safety, regularity and efficiency of air navigation. o In argument before the High Court it was suggested that intrastate matters could be regulated under s 51(i) if intrastate matters commingled with interstate or overseas trade and commerce to such an extent that it was necessary to enable the regulation of those intrastate activities to effectively regulate the interstate or overseas trade and commerce. o However, a majority of the Court rejected this argument. o Barwick CJ stated, the Commonwealth has not and, without constitutional amendment, cannot obtain such legislative power with respect to any aspect of such trade and commerce No so-called integration of inter-State and intra-State air navigation or air
In some cases it is less easy to distinguish the intrastate operation of a regulation from its interstate operation. Redfern v Dunlop Rubber Australia Pty Ltd (1964) 110 CLR 194. o Concerned constitutional issues arising out the governments trade practices legislations o Dunlop had deal with other tyre retailers, they said sell according to RRP this is called retail price maintenance o Dunlop argued that the Cth may have power to regulate interstate but not intra state o They said it had both inter and intra state workings they said u cant regulate us about intra state o Redfern argued that the Cth can regulate where it involves inter state, if intra agreement also is there then so be it. o The plaintiffs alleged that as a consequence of a restrictive trade agreement between the defendants they were unable to buy tyres and other rubber materials at the wholesale prices at which they would otherwise have been available or at prices other than current trade list prices. The tyre companies pleaded that the Act was unconstitutional on the basis that it could apply to agreements which involved both intrastate trade and s 51(i) trade in this case purporting to regulate a purely intrastate sale. o While Taylor J was prepared to consider that s 51(i) could extend to situations where there was an intermingling of interstate and intrastate trade and commerce, the power could not authorise regulation of a purely intrastate arrangement, even if this had an economic effect on interstate o Menzies J: o Commonwealth power over trade and commerce can only extend to such intra-State trade and commerce as is inseparably connected with inter-State trade and commerce, but full acceptance of this limitation is quite consistent with the Commonwealth power to prohibit or regulate acts which relate to intra-State trade and commerce if they relate to inter-State or overseas trade and commerce as well It is true that the constitutional distinction between overseas and inter-State trade and other trade would enable a person
Minister for Justice (WA) (Ex rel Ansett Transport Industries (Operations) Pty Ltd) v Australian National Airlines Commission (1976) 138 CLR 492. o Most recent case on T&C o The case concerned the constitutional validity of regulations authorising the Australian National Airlines Commission, a Federal body, to provide interstate airline services. The Commission made regulations enabling a service between Perth and Darwin, with a stopover in Port Hedland, Western Australia to pick up passengers and freight. Ansett challenged the scheme on the basis that it authorised an intrastate air service that could not be supported by s51(i). o A majority of the High Court, held that the proposed scheme, insofar as it operated between the Northern Territory and other parts of the Territory, and between the Northern Territory and parts of Western Australia, involved a constitutionally valid exercise of the Territories power, s122. o However, inasmuch as the scheme contemplated an intrastate air transport journey between Perth and Port Hedland, it was constitutionally invalid. o Gibbs J: It has been held again and again and in my respectful opinion, correctly held that s51(i) recognises a distinction between inter-State trade on the one hand and the domestic trade of the States on the other, and that this distinction must be maintained however much interdependence may now exist between those two divisions of trade and however artificial the distinction may be thought to be. It is also established that the incidental power cannot be given an operation that would obliterate the distinction.
Therefore, the HC concluded that an economic relationship could not justify a regulation of intrastate trade and commerce. Implied incidental power and characterisation
Limitations on the Trade and Commerce Power: The language of the section indicates that the power is subject to the Constitution, including any express or implied constitutional limitations on power. A number of these limitations bear directly on the topics of trade and commerce, such as ss 92, 99 and 100. Other express limitations can conceivably arise from ss 5i (xiii) or (iv), as well as any implied constitutional limitations.
Corporations
Section 51(xx) of the Constitution provides: 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: (xx) foreign corporations, and trading and financial corporations formed within the limits of the Commonwealth What is a corporation? A corporation is an association of individuals who join for certain purposes, such as the conduct of business. A corporation has a distinct legal identity from the individuals who form it, including legal rights
Trading is a gerund or verbal noun that denotes activity. It refers to the activity of engaging in trade. Should any significance be attached to the fact that s 51(xx) refers to trading corporations rather than, say, corporations that trade? In Actors and Announcers Equity Association v Fontana Films Pty Ltd, Gibbs CJ, in a passage cited with approval by Dawson J in Re Dingjan; Ex parte Wagner, said: "The words of par (xx) suggest that the nature of the corporation to which the laws relate must be significant as an element in the nature or character of the laws, if they are to be valid ... In other words, in the case of trading and financial corporations, laws which relate to their trading and financial activities will be within the power. This does not mean that a law under s 51(xx)
Refer to the meaning of trade and commerce in the s51(i) power Financial: The word financial can be interpreted in its current and popular sense, and is not restricted to the the meaning the words had had in 1900: (Adamsons case) Re Ku-Ring-Gai Co-operative Building Society (No 2) (1978) 22 ALR 621 o High Court had to consider whether the Trade Practices Act 1974 (Cth) applied to building societies set up to provide low-interest loans to their members for housing. o It was only the secondary objective to make a profit from providing its finance. o The Full Court agreed that building societies were financial corporations for the purpose of s51(xx). o Deane J, basically concluded that financial means the activities of a corporation that involve buying and selling money. o Brennan J: the borrowing of moneys to lend to its members, the lending of those moneys, the receipt of repayments and the ultimate repayment of moneys to the source from which they came. These are money dealings. The activities of borrowing in order to lend and lending at interest are financial activities which give to each corporation the character, and place it within the category of financial corporation. o Deane J: Whatever may be the motivation of borrower or lender or of those involved in making or assisting in making the relevant funds available, the borrowing from the bank of each applicant was a secured borrowing at interest and was a commercial dealing in financeThe lending to members is the raison detre of the applicants and both the purpose and the culmination of their operations. State Superannuation Board v Trade Practices Commission (1982) 150 CLR 282 o The Victorian State Superannuation Board administering a fund established to provide pension payments for State public servants. The constitutional question was whether the TPA applied to the Board for the purposes of it being a financial corporation under s51(xx) o like the expression trading corporation, the words financial corporation are not a term of art; nor do they have a special or settled legal meaning. They do no more than describe a corporation which engages in financial activities or perhaps is intended to do soa finance corporationdeals in finance for commercial purposes, whether by way of making loans, entering into hire purchase agreements or providing credit in other forms, and this activity is not undertaken for the purpose of carrying out some other business. However, just as a corporation may be a trading corporation, notwithstanding that its trading activities are entered into in the course of carrying on its primary or dominant undertaking, thus a corporation which is formed by an employer to provide superannuation benefits for its employees and those of associated employers may
Actual or Intended Activities The character of a corporation may be determined by reference to its actual or intended activities: NSW v Cth (1990) This is regarded as the test to determined if the business or organisation is in fact a corporation under s51(xx): what is the actual or intended activity. If a corporation is formed with the purpose of engaging in trading or financial activities, this will be sufficient to mark the corporation as a trading or financial corporation for the purposes of s51(xx) If a corporation is engaged in trading or financial activities, even though it may have been formed for other purposes, it will be a trading or financial corporation within the meaning of s51(xx) if its trading or financial activities constitute a substantial or significant part of its activities.
Intended activities/Purposes: R v Trade Practices Tribunal; Ex parte St George County Council (the St George County Council case) (1974) 130 CLR 533, A corporation was defined by reference to its purposes, rather than its activities. This was a 3:2 majority that the purpose is looked at Majority: Menzies, Gibbs and McTiernan not a trading corp. o McTiernan s51(xx): does not apply to public corporation o Menzie and Gibbs: does not apply to immiscible corporation FURTHERMORE: have to look at the purpose of the corporation, the council was corporate not for profit basis. They made a profit but that was not their purpose for incorporation Minority: Mason CJ and Barwick: you characterize by its activities. What does that corporation do? If it acts in trading activities then it is a trading corporation. o A corporation was defined by reference to its purposes, rather than its activities. o The question here was whether the St George County Council was a corporation as it was formed to buy and sell electricity in a local Government district in New South Wales, and also sold electrical appliances, from which it delivered profits. o Based on the facts, it was held that the County Council was not a corporation. It was considered by Menzies J that the character and purpose of the Council was to serve the public interest, and that the Council was properly characterised as a municipal corporation rather than a trading corporation. o Gibbs J: in my opinion, the words trading corporation in s51(xx) do not mean a corporation which is trading. The word trading forms part of a composite expression and indicates
The High Court was required to consider whether or not the TPA extended to regulate a shelf company or only companies actually trading. o A shelf company is one which has not been incorporated and not yet having had engaged in any trading or financial activities, but is anticipated to in the future, so is placed on the metaphorical shelf till it begins its activities. o A majority agreed that a test of the purposes (or intended activities) could be applied in circumstances where a corporation has not yet commenced activities. The character of a corporation as a trading or financial corporation can be determined by reference to its objects contained in its memorandum and articles of association, as a guide to whether it is a trading or financial corporation, where it was a shelf company which had not carried on business. o This basically covers every company in Australia because trading will inevitably be one of any companys purposes.
Held: trade practices act regulate trading corporation and they can be categorized by its purposes OR activities. In this case you apply the activities test. Nothing in this case suggests you cant apply purpose test but just confirmed that you can apply the activity test. R v Judges of the Federal Court of Australia ; Ex parte Western Australia National Football League (Adamsons case) (1979) 143 CLR 190 o Football player wanted to transfer to a South Australian club from a WA club, however his football club prevented him from doing so, therefore he brought an action against the club claiming that there was a restraint of trade. o High Court held that if a corporation has substantial or significant trading activities, then it will be a trading corporation. o The league argued that they were not a trading corporation because their purpose was to promote football
To be safe in the test apply all of the tests: The character of a corporation is by the reference of actual or intended, substantial or significant, trading or financial activities that may not form predominant part of the activities Trading and financial corporations Formed within the limits of the Commonwealth
N.B.
States sold its power to incorporate trading or financial organizations to the Cth. S51(xxxvii) gives states power to refer their constitutional powers to the constitution THUS now you go to ASIC and not a state commission to incorporate The states threatened the treasurer by saying they will take back the power, because it had a sunset clause Australian National Airways Pty Ltd v Commonwealth (No 1) (1945) 71 CLR 29 o The High Court said that the Commonwealth may incorporate a company under s51(i) to conduct an interstate trading business.
The scope of the corporations power The earlier view: The power to regulate intrastate trade has been reserved to the States. Huddart, Parker & Co Pty Ltd v Moorehead (1909)8 CLR 330 (above) o This case concerned the validity of Commonwealth legislation which extended to control the restraint or monopolisation of interstate trade. o Held that s51(xx) had a limited scope and could not be used to regulate the intrastate activities of foreign, trading or financial corporations. The Court applied the doctrine of State reserved powers and concluded that the power to regulate intrastate trade has been reserved to the States.
There is a basic tension in the HC between judges with regard to s51(xx): Approach 1: s51(xx) once you determine that the corporation is a trading or financial corporation then you can regulate any of its activities Approach 2: s51(xx) once you determine that the corporation is a trading or financial corporation then you can only regulate its trading or financial activities Strickland v Rocla Concrete Pipes Ltd (1971) 124 CLR 468 o This case concerned the constitutional validity of provisions of the TPA and whether provisions which regulated the intrastate trading activities and practices of trading or financial corporations could be supported by s51(xx). o Moorehead was applied and these provisions were held to be invalid. o On appeal to the High Court, Moorehead was disapproved on the basis that it was decided during the currency of the doctrine of State reserved powers, a doctrine that was rejected by the High Court in the Engineers case in 1920. Due to this, the Court held that: a law may be a law with respect to a foreign corporation or a trading or financial corporation formed within the limits of the Commonwealth notwithstanding that it affects the corporation in the conduct of its intrastate trade. o Barwick CJ proceeded to state that the power extended to enable the regulation of amongst other things the trading activities of foreign corporations and trading or financial corporations formed within the limits of the Commonwealth. o The Court had also expressed no doubt that the power could authorise offences subjecting individuals to civil liability under the trade practices legislation. o Mason J concluded that s51(xx) was wide enough to enable the Federal Parliament to create the offence, and also, with or without the incidental power, to extend liability to a person knowingly concerned in the commission of an offence. o The court said that attached to every express grant of power is an implied grant of power wide enough to make the express grant effective Fencott v Muller (1983) 152 CLR 570 o The decision extended civil liability to persons involved in corporate contraventions of the TPA. It was held thatonce it is accepted, as it is now, that the corporations power extends to the regulation of the trading activities of trading corporations, it necessarily follows that, in some circumstances at least the power must extend to the imposition of duties on natural persons[because] corporations act through natural personsand in order to be effective, a regulation of the activities of corporations calls for the imposition of duties on those natural persons who would, or might, in the ordinary course of events, participate in corporate activities, the subject of intended regulations.
Broader still: A power to regulate the activities of persons who harm the interests of s51(xx) corporations.
A plenary power? Is it a power to regulate any activities of a s51(xx) corporation? Commonwealth v Tasmania (the Tasmanian Dam case) (1983) 158 CLR 1 o The case concerned a proposed Hydro Electric Plant. Labour government came into power. As a policy move said they would stop the plant. o They passed federal legislation to stop the building of the dam. The constitutional validity of the Act was challenged. o Went to the HC. o The Cth argued it had invoked the external affairs and the corporations power to pass the legislation. o External Affairs Powers: Cth said they were going to implement the world heritage obligations so needed the External Affairs power to implement into domestic law. o This argument was rejected as the HC said it was merely putting international law into domestic law o Corporations Power: Cth said legislation prevented corporations from accessing the land is legislation supported by s51(xx) because according to the HC the Cth could us its power over trading corporations to regulate trading activities done for the purpose of trading activities o The company which was undertaking the project (Tasmanian Hydro) was incorporated for the purpose of trading activities. o Hence there was no question that it was a trading corporation created for the express purpose of trading electricity. o What was to be decided was the ambit of the power.
Characterisation A sufficient or significant connection between the power and the Federal law is required. Re Dingjan; Ex parte Wagner (1995) 183 CLR 323 o This case concerned industrial relations legislation and the validity of whether the Commonwealth can use the power of s51 (xx) to regulate industrial relations between a Tasmanian pulp company and its sub-contractors.
Tas pulp
Analysis: The proposition that s 51(xx) is a plenary power over the types of corporations listed in that provision is plainly correct, and this was confirmed by a clear majority in Re Dingjan as noted in the analysis of the judgment of Toohey J above. This is consistent with orthodox (conventional) principles of constitutional interpretation. Where there is conflict regarding the natural and ordinary meaning of the words in constitutional powers, the High Court has indicated a preference for the broader or wider interpretation of a word or phrase. This approach to constitutional interpretation was endorsed by OConnor J in Jumbunna Coal Mine NL v Victorian Coal Miners Association (1908) 6 CLR 309 at 3678: it must always be remembered that we are interpreting a Constitution broad and general in its terms, intended to apply to the varying conditions which the development of our community must involve. For that reason, where the question is whether the Constitution has used an expression in the wider or in the narrower sense, the Court should, in my opinion, always lead to the broader interpretation unless there is something in the context or in the rest of the Constitution to indicate that the narrower interpretation will best carry out its object and purpose. In addition, it is a well-established principle that the words of a power are to be construed with all the generality the words admit. The conclusion is irresistible when one considers the absurdity of the narrow view, as Mason J points out in the Tasmanian Dam Case (1983) 158 CLR 1: It can scarcely have been intended that the scope of the power was to be limited by reference to the
Section 51 of the Constitution provides: 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: (xxix) External affairs: The phrase external affairs refers to any persons, places, matters or things geographically external to Australia, and enables the Parliament to pass laws concerning crimes committed by Australian aircraft or by Australians overseas, and petroleum and mineral exploration in Australian international waters. It also refers to Australias relationship with other countries, including diplomatic relations, requests for the extradition of fugitives from other countries who are wanted in Australia, and Australias international obligations under treaties or otherwise. Australian law authorised by the external affairs power implements treaty obligations in a wide variety of areas. Polyukhovich v The Commonwealth (1991) 172 CLR 501 o This case concerned a man living in Adelaide, who was charged with war crimes which he was alleged to have engaged in. o The Act said that any person in Australia that engaged in Nazi was crimes was liable for prosecution. o The constitutional validity was questioned due to the retrospective effect and that a law cannot regulate outside of Australia. o The HC held that the Cth can regulate out of Australia. o Deane J said, external means outside, that is, affairs outside of Australia, including people, places, matters or things outside Australia, or external to, Australia. o This also includes international treaties and the implementation in Australian domestic law. o The first thing to be stressed about s 51(xxix) of the Constitution for the purposes of the present case is that its reference to External affairs is unqualified. The paragraph does not refer to Australias external affairs. Nor does it limit the subject matter of the grant of power to external affairs which have some special connexion with Australia. The word external means outside. As a matter of language, it carries no implication beyond that of location. The word affairs has a wide and indefinite meaning. It is appropriate to refer to relations, matters or things. Used without qualification or limitation, the phrase external affairs is appropriate, in a constitutional grant of legislative power, to encompass both relationships and things: relationships with or between foreign States and foreign or international organizations or other entities; matters or things which are territorially external to Australia regardless of whether they have some identified connexion with Australia or whether they be the subject matter of international treaties, dealings, rights or obligations. Such a construction of the phrase External affairs in s 51(xxix) is supported by the settled principle of constitutional construction which requires that, subject to any express or implied general constitutional limitations and any
The Executive also enjoys certain powers in respect of Australias international relations, including the negotiation and conclusion of international treaties, the management of diplomatic affairs and requests for international assistance in the extradition of fugitives. Geographic externality Persons, places, matters or things external to Australia New South Wales & Ors v The Commonwealth (the Sea and Submerged Lands case) (1975) 135 CLR 337
o Cth purported to pass legislation (Sea and Submerged Lands Act 1973) which purported to give the Cth sovereignty over the sea and the sea bed and the sub soil from a point 3 nautical mils from the states out to the international limit (at the time 100 miles , now 200) o They wanted to generate royalties for oil and gas in those areas (traditionally states did this) o The legislation was challenged on the basis that the States retained power over their territorial sea after Federation, and this power extended beyond the low water mark o The HC held the Cth has the power under the external affairs power to regulate people, places, matters or things outside Australia, therefore the law was valid. o The legislation was upheld as it implemented Australian international treaty obligations and also on the ground that the external affairs power extended to allow the Federal Parliament to pass laws regulating affairs which are geographically external to Australia. Power to legislate with respect to extraterritorial matters with retrospective effect: Polyhukovich v The Commonwealth (1991) 172 CLR 501 o This case concerned the constitutional validity of the War Crimes Amendment Act 1988 (Cth), which criminalised the conduct of Nazi officers in Axis-occupied Territories during the Second World War in Europe if that conduct would have constituted an offence under Australian criminal law. The plaintiff challenged the legislation on a number of grounds, one that it was not a valid exercise of the external affairs power. o A majority upheld the Act on the basis that it operated upon conduct which had taken place outside Australia, confirming that s51(xxix) enables the regulation of anything outside Australia. o At 551 brennan sais, they are matters outside Australia but not those that have nothing to do with Australia. Brennan introduces his test of the need for a nexus between the matter which the law purports to effect and Australia. This is the narrow view of the limits of the external affairs of Australia o This was confirmed by Brennan CJ, Toohey, Gaudron, McHugh and Gummow JJ in Victoria v The Commonwealth (1996) 187 CLR 416 at 485: The power extends to places, persons, matters or things physically external to Australia. The word affairs is imprecise, but it is wide enough to cover places, persons, matters or things. The word external is precise and unqualified. If a
Australias international relations and obligations The phrase external affairs also refers to Australias international relations. The external affairs power can be used to support federal legislation regulating Australias relationships with other countries and the conditions of those relationships. R v Sharkey (1949) 79 CLR 121 o The external affairs power supported legislation which made sedition (treason) a criminal offence in any of the Kings Dominions (including, at the time, the United Kingdom of Australia), sharky made pro communist comments o Latham CJ said: The relations of the Commonwealth with all countries outside Australia, including other Dominions of the Crown, are matters which fall directly within the subject of external affairs.
Consequently, the external affairs power could authorise federal legislation which repealed Imperial legislation operating within the Australian States Kirmani v Captain Cook Cruises Pty Ltd (No 1) (1985) 159 CLR 351
Sources of international obligations: International obligations can arise from a number of sources, including international treaties or conventions to which Australia is a party, the recommendations of international organisations, matters of international concern and perhaps also the general principles of international law or customary international law. R v Burgess; Ex parte Henry (1936) 55 CLR 608 o it is not to be assumed that the legislative power of external affairs is limited to the execution of treaties or conventions; andthe Parliament may well be deemed competent to legislate for the carrying out of recommendations as well as draft international conventions resolved upon by the International Labour Organization or of other international recommendations or requests upon other subject matters of concern to Australia as a member of the family of nations.
This list of sources is only indicative and is not exhaustive. Executive power over international relations also includes: The power to arrange for extradition of fugitives from foreign countries to Australia, even in the absence of a treaty with those nations (Barton v The Commonwealth) The power to regulate Australian waters (Ruddock v Vadarlis) The power to declare war and peace (Farey v Burvett] Treaties are entered into by the Governor-General on the advice of the Federal Executive Council: Barton v Commonwealth (1974) 131 CLR 477.
Implementation of international obligations: The external affairs power also gives the Commonwealth exclusive power to implement international
This typically involves a number of steps: Adoption of the treaty text by the participating States Signature and ratification which signifies acceptance or approval of the treaty A party may accede (agree) to a treaty that is already in force (accession), assuming the obligations and rights of member States. Parties may make reservations that indicate that they will implement the relevant treaty obligation in a certain way or in a way which modifies its effect in that State.
In Australian treaty practice the Commonwealth commonly enters a federal reservation when it negotiates and signs a treaty, indicating the Commonwealth may be limited in its power to implement some matters because it shares power with the States. Identification of International Obligations: a question of fact for the court to decide The identification of an international obligation can be a difficult task. The determination of the existence of an international obligation is a question of fact for the Court to decide. Queensland v Commonwealth (the Daintree Rainforest case) (1989) 167 CLR 232 o This case concerned federal legislation implementing Australian treaty obligations under the World Heritage Convention. The Convention included a World Heritage list of property of international environmental significance. Under the convention, parties had the power to nominate areas of land for inclusion. Relying on this power, the Commonwealth made a proclamation in respect to the Daintree Forest in Queensland. Queensland challenged this. o It was concluded by the High Court that, in the absence of any suggestion of bad faith either in the nomination of the listing, the inclusion of the property in the List was conclusive of its status in the eyes of the international community and conclusive of Australias international duty to protect and conserve it.
There are no limits to the topics which may be the subject matter of international obligations. The subject matter of the external affairs power is continually expanding, as Australias international personality expands. Treaties are entered into by the Governor-General on the advice of the Federal Executive Council: Barton v Commonwealth (1974) 131 CLR 477.
R v Burgess; Ex parte Henry (1936) 55 CLR 608 o A consequence of the closer connection between the nations of the world (which has been partly brought about by the modern revolutions in communication) and of the recognition by the nations of a common interest in many matters affecting the social
Treaties are not self-executing A treaty will not form part of domestic law until it has been implemented in a valid federal law: Walker v Baird (1892) AC 491 and Victoria v Commonwealth (1996) 138 ALR 129. There is no requirement that the Parliament implement international treaty obligations which are negotiated and settled by the Executive. However, this does not mean that treaty obligations which have not yet been implemented are irrelevant to Australian law. Where Australia is a party to a treaty, the text of that treaty may assist in the interpretation of ambiguous domestic law or in the exercise of statutory discretion: Chu Kheng Lim v Minister for Immigration (1992) 176 CLR 1 It is said to be a principle of Australian statutory interpretation that statutes are to be interpreted and applied in conformity and not in conflict with established principles of international law: Polites v The Commonwealth (1945) 70 CLR 60 and Teoh v Minister for Immigration and Ethnic Affairs (1995) 183 CLR 273.
This would allow the Commonwealth to do anything reasonably incidental to the execution of the purpose but wide departure from the purpose is not permissible. Meticulous adherence to the terms of the treaty is not required so long as the purpose of the treaty is effected. Meticulous adherence to the terms of the treaty is not required, so long as the purpose of the treaty is effected. R v Poole; Ex parte Henry (No 2) (1939) 61 CLR 634 o Here the federal provisions were upheld by the majority, on the basis that the regulations at issue were incidental to the Convention, and were an appropriate means of implementing the Convention, notwithstanding the broader definition of the relevant area in the domestic regulations. o It was not necessary to demonstrate meticulous adherence to each provision in the Convention, so long as the domestic provisions were well adapted and appropriate to ensure the observance of the Convention or it was an appropriate and effective means of carrying out and giving effect to the Convention.
When the Commonwealth regulates a matter which is incidental to the effective implementation of an international treaty, it is not necessary for the domestic law to be referable to any explicit obligation in the treaty. The principle that the external affairs power extends to enable the Commonwealth to realise Australias reasonably apprehended treaty obligations has been accepted in a number of more recent decisions.
The law with respect to external affairs, the law must be reasonably capable of being considered appropriate and adapted to implementing the treaty: Victoria v Commonwealth (1996) 187 CLR 416 o The case concerned the constitutional validity of federal legislation binding the States which made provision for collective bargaining and the right to strike, and imposed obligations on employers with respect to minimum wages, equal pay, termination of employment, discrimination in employment and family leave. The law was challenged on a number of grounds, including that it was not within the external affairs power. It was argued that the external affairs power did not enable the implementation of treaty obligations unless the subject matter of the treaty was a matter of international concern, that recommendations of international organisations could not impose obligations in the relevant sense, and further, that the domestic provisions were not appropriate or adapted to the implementation of the obligations. o The Commonwealth argued that the law could be supported on the basis that it dealt with the subject matter of international treaties, recommendations and customary international law, all which could provide a source of international obligation. o The High Court held thatWhere the legislative power is said to be enlivened by a treaty binding on the Commonwealth of Australia, and the law prescribes a regime affecting a domestic subject-matter; a question arises as to the connection which must exist between the law and the treaty. To be a law with respect to external affairs, the law must be reasonably capable of being considered appropriate and adapted to implementing the treaty. Thus, it is for the legislature to choose the means by which it carries into or gives effect to the treaty provided that the means chosen are reasonably capable of being considered appropriate and adapted to that end. But that is not to say that an obligation imposed by treaty provides the outer limits of a law enacted to implement it. The term purpose has been used to identify the object for the advancement or attainment of which a law was enacted. Where a treaty relating to a domestic subject-matter is relied on to enliven the legislative power conferred by s 51(xxix) the validity of the law depends on whether its purpose or object is to implement the treaty. Richardson v Forestry Commission (1988) 164 CLR 261 o The power to make laws with respect to external affairs contains no expression of purpose and in that respect it is like most of the other powers contained in s51 of the Constitution. It is not a power to make laws for the purpose of cementing international relations or achieving international goodwill or even for implementing international treaties. The implementation of treaties falls within the power because it is a subjectmatter covered by the expression external affairsIn this context, purpose is not something found in the head of power. Rather, it is a test for determining whether the law in question is reasonably capable of being considered as giving effect to the treaty and therefore as being a law upon a subject which is an aspect of external affairs. It has been said that a law will not be capable of being seen as appropriate and adapted in the necessary sense unless it appears that there is reasonable
There is also no additional requirement that a domestic law implementing an international treaty deal with a matter of international concern: Victoria v Commonwealth (1996) 187 CLR 416 Characterisation: Characterisation: Geographic externality The tests of characterisation applicable to the external affairs power differ, depending on which aspect of the external affairs power is being emphasised. If the law is said to be supported by the external affairs power on the basis that it concerns something geographically external to Australia, it is only necessary to demonstrate that the law is with respect to that matter or thing. Polyukhovich v The Commonwealth (1991) some judges shared the view that subject to express and implied constitutional limitations it was not necessary for the Federal Parliament to establish a connection between a matter outside Australia and Australian concerns in order to regulate the selected matter. The majority said that to require a connection would be inconsistent with the plenary grant of power to the Federal Parliament to make laws for the peace, order and good government of the Cth with respect to external affairs, and that to hold otherwise would be to create a void or space in the Cths legislative power. At any rate, any requirement of a connection would be satisfied by the Federal Parliaments selection o the matter as an appropriate matter to regulate: per Gaudron Minority (Brennan and Toohey JJ) expressed that more would be required: it would be necessary to demonstrate some sort of connection between the external affairs and
Horta v The Cth (1994) [look above] left open the question with respect to the requirement of a nexus unanimous judgment approving Polyukhovich and upheld the legislation on the basis that it dealt with a place which was geographically external to Australia, the Timor Gap The court was clear with regard to the comments of Brennan and Toohey JJ. They said in this case the fact that the Timor Gap was outside of Australia was also supported by the fact that exploration of petroleum resources formed an obvious and substantial nexus with Australian concerns, hence both were fulfilled.
Limits on the External Affairs power Section 51(xxix) is subject to the Constitution and its express and implied constitutional limitations. Victoria v Commonwealth (1996) 138 ALR 129 o While the federal law was not held to discriminate against a State or States, thus surviving the first limb of the Melbourne Corporation principle, the law failed on the second limb as the law removed the capacity of the States to set terms and conditions for their employees. This removed the States capacity to function as independent governing entities and the provisions were read down to limit the scope of their operation on this basis.
The scope of s51(xxix) is not limited by the scope of other powers It is a well established principle of constitutional interpretation that federal powers are to be read with all the generality the words admit, and are only to be limited by any express or necessarily implied
If the Cth exercises its external affairs powers in implementing treaty obligations which are void or unlawful under international law this does not invalidate domestic legislation Horta v The Commonwealth (1994) 181 CLR 181 o The Court, in a unanimous judgment, said, even if the Treaty were void or unlawful under international law, the Act would not thereby be deprived of their character as laws with respect to External affairs for the purposes of s51(xxix). Neither s51(xxix) itself nor any other provision of the Constitution confines the legislative power with respect to External affairs to the enactment of laws which are consistent with, or which relate to treaties or matters which are consistent with, the requirements of international law.
The Commonwealth may not cite an international obligation as a sham or circuitous device to attract legislative power In a number of decisions there is dicta that suggest that the Commonwealth may not enter into an international treaty merely as a device to attract jurisdiction to itself which it would not otherwise have: Koowarta v Bjelke-Petersen (1982) 153 CLR 168 and Commonwealth v Tasmania (1983) 158 CLR 1 It has been suggested that any international treaty to which Australia is a party must be bona fide: R v Burgess; Ex parte Henry (1936) 55 CLR 608 Horta v The Commonwealth (1994) 181 CLR 183 o In this case the Court considered the question whether the propriety of the recognition by the Executive of the sovereignty of a foreign nation over foreign territory was justiciable. The Court remarked that this question could only be considered in circumstances where there was a sham or circuitous device to attract legislative power. As indicated above, this would be a question of fact for the Court to decide, when it is determining whether an international obligation exists.
Meticulous adherence to the terms of the treaty is not required, so long as the purpose of the treaty is effected R v Poole; Ex parte Henry (No 2) (1939) 61 CLR 634 To be a law with respect to external affairs, the law must be reasonably capable of being considered appropriate and adapted to implementing the treaty: Victoria v Commonwealth (1996) 187 CLR 416
The Executive
The Prerogative (privilege or right) The prerogative refers to all the traditional powers and immunities enjoyed by the Imperial Crown at common law at Federation. The prerogative powers included the typical executive concerns of nationStates at Federation: international affairs, defence, and certain decision-making powers in relation to the enforcement of public and criminal law. The Crown also enjoyed prerogative immunities relating to the management of public finance and in respect of its property, and a more general presumptive immunity from legislation. 1. Because the prerogative powers emanated from the common law, it can be removed by legislation: Commonwealth v Cigamatic Pty Ltd (in liq) (1962) 108 CLR 372 2. Because all the prerogative powers of the Imperial Crown were vested in the Executive Government of the Commonwealth at Federation, there is overlap between the common law prerogative powers and the executive powers of the Commonwealth which are authorised by legislation under s61 of the Constitution: Victoria v Commonwealth (1996) 187 CLR 416 3. While prerogative powers and immunities were the creation of the common law they were, paradoxically (ironically), not generally regarded to be susceptible to judicial review, or the extent to which judicial review could condition the exercise of the prerogative was restricted: R v Toohey; Ex parte Northern Land Council (1981) 151 CLR 170
International Affairs The Executive enjoys a prerogative power to enter treaties: R v Burgess; Ex parte Henry (1936) 55 CLR 608 Treaties are entered into by the Governor-General (formally) and the Foreign Minister (practically speaking) on the advice of the Federal Executive Council: Barton v Commonwealth (1974) 131 CLR 477 The conduct of foreign affairs, generally, including entry into and execution of treaty obligations, and diplomatic matters, is part of the prerogative (or executive) power of the Crown: Koowarta v Bjelke-Peterson (1982) 153 CLR 168 The prerogative power also extends to enable the Executive to request the extradition of fugitives where there is no extradition treaty in place with the relevant country: Barton v Commonwealth (1974) 131 CLR 477
Defence The Commonwealth enjoys the power to declare war or peace: Farey v Burvett (1916) 21 CLR 433 It has been suggested that the Commonwealth might enjoy a prerogative power to expropriate (take) property for the purposes of defence (seemingly only during a war-time emergency) exempt from any requirement of just terms under s51(xxxi) of the Constitution: Johnston Fear and Kingham v Commonwealth (1943) 67 CLR 314 The prerogative extends to the control of the armed forces, except insofar as they have been superseded by statute: Marks v Commonwealth (1964) 111 CLR 549 Land used by the Commonwealth for defence purposes was immune from the operation of State taxes by virtue of the Commonwealths prerogative power to defend Australia: Essendon Corporation v Criterion Theatres Ltd & Ors (1947) 74 CLR 1
The defence prerogative is very wide and can enable regulation which might otherwise be prohibited by the Constitution. Farey v Burvett (1916) 21 CLR 433 o Isaacs J saidExecutive power extends to the execution and maintenance of this Constitution, and of the laws of the Commonwealth. These provisions carry with them the royal war prerogative, and all that the common law of England includes in that prerogative so far as it is applicable to AustraliaThe full extent of the prerogativeis certainly great in relation to the national emergency which calls for its exercise[However] actual defence, and all that it connotes, comes only when we are at warwhile peace prevails, the normal facts of national life take their respective places in general alignment, and are subject to the normal action of constitutional powers.
The Principle of Crown Immunity At common law, the Crown and its servants and agents were presumed to be immune in relation to their activities in the course of their functions or duties as such: Bropho v Western Australia (1990) 171 CLR 1. There was an earlier rule that legislation was presumed not to bind the Crown unless a contrary intention was manifest by its terms: Province of Bombay v Municipality of Bombay [1947] AC 58. A threshold question to consider was whether a person or corporation could be regarded as a servant or agent of the Crown. 1. This depended on the extent to which the servant or agent was subject to direct ministerial control, or was independent of the Government and enjoyed discretionary powers of its own: Grain Elevators Board (Vict) v Dunmunkle Corporation (1946) 73 CLR 70 2. A second test involved the consideration of the overall nature of the functions and duties of the purported servant or agent: Registrar, Accident Compensation Tribunal v Commissioner of Taxation (Cth) (1993) 178 CLR 145 3. A third test (which has fallen out of favour) was based on the proposition that some duties and functions were traditional to government, however this has been criticised on the basis that concepts of the role of government change over time, and opinions may differ regarding the traditional role of government: Superannuation Fund Investment Trust v Commissioner of Stamps (SA) (1979) 145 CLR 330 Once a person or corporation has been identified as a servant or agent of the Crown, that person will normally be entitled to the benefit of the Crown immunity from a statute, if the interests of the Crown would be prejudiced if such persons were bound: Bradken Consolidated Ltd v The Broken Hill Co Pty Ltd (1979) 145 CLR 107 However, Crown immunity is not absolute. Superannuation Fund Investment Trust v Commissioner of Stamps (SA) (1979) 145 CLR 330 o On occasions the legislative intent (to bind the Crown) may be a complex one, especially where a corporation has conferred upon it a number of quite distinct functions. The intention may be that only some of these should attract the immunities and privileges of
Test Today The question whether a statute will be held to apply to and bind the Crown is a question of statutory interpretation. The test is whether the purpose, policy and subject matter of legislation discloses an intention that the Crown is to be bound: Bropho v State of Western Australia and Another (1990) 171 CLR 1. The new rule purportedly applies specifically to statutes enacted after 20 June 1990. In construing legislative provisions enacted prior to this date, it may be necessary to take account of the fact that the prior test of necessary implication was seen as of general application at the time when the provision was enacted, but that legislative intent will still prevail notwithstanding the fact that this test is not satisfied. Bropho v Western Australia (1990) 171 CLR 1 o A provision of Western Australian legislation made it an offence for any person to destroy or damage Aboriginal sites or objects on or under such sites. Bropho brought an action against the State of Western Australia and the Western Australian Development Corporation alleging that the defendants were in breach of that provision. The defendants applied to strike out the statement of claim on the ground that the provision did not bind the Crown. o The Court applied the principles outlined above and concluded that the provisions bound the Crown. In particular the Court was swayed by the consideration that the intention of the legislature to protect Aboriginal heritage would be frustrated if the Crown was not bound.
Nationhood The executive power extends to the execution and maintenance of the Constitution and the laws of the Commonwealth: s 61. In order to assist the prosecution of executive aims, the Federal Parliament may use its power in s 51(xxxix) to make laws with respect to: Matters incidental to the execution of any power vested by this Constitution in the Parliament or in either House thereof, or in the Government of the Commonwealth, or in the Federal Judicature, or in any department or officer of the Commonwealth. The Scope of the Power It is well established that the executive power may be used to authorise legislation imposing criminal
An implied power It has been recognised for some time that the very existence of the Commonwealth as a nation may give rise to powers consistent with nationhood. The idea that Australian nationhood gives rise to certain implied powers was crystallised in: Australian Communist Party v The Commonwealth (1951) 83 CLR 1 o Federal (Menzies gov) legislation was enacted with the purpose of banning the Australian Communist Party. The Governor-General was given the power to declare that certain organisations were communist organisations, and thus they and those affiliated with them were deemed unlawful and a receiver was set to take their property. The legislation
Administrative functions incidental to the exercise of judicial power The HC noted in the Boilermakers Case that the constitution allows Ch III courts to exercise judicial power and powers auxiliary or incidental thereto. Chapter III Courts have the power to engage in administrative functions which are incidental to the effective exercise of judicial power, so long as these functions do not usurp judicial power (and are not otherwise invalid), they may be supported by s71 together with s51(xxxix) of the Constitution, as functions incidental to the exercise of judicial power. Harris v Caladine (1991) 172 CLR 84 o Provisions of the Family Law Act 1975 (Cth) empowered Family Court judges to make rules enabling registrars or non-judicial officers to exercise powers of the Court. Non-judicial officers were allowed to make consent orders or orders in undefended proceedings relating to dissolution and nullity decrees, declarations as to the validity of a marriage or the dissolution or annulment of a marriage, and orders relating to the custody, guardianship or welfare of, or access to, a child. This was challenged on the basis that they enabled a person without judicial tenure under s 72 of the Constitution to exercise judicial power of the Commonwealth. o This argument was rejected by a majority of the Court. It was said that many of the functions committed to Chapter III Courts are administrative in nature and it would be unnecessary for every function to be exercised by a Chapter III judge. However, it would be necessary for judges of the Court to retain effective control of Federal jurisdiction and judicial power so long as two conditions are observedThe first condition is that the delegation must not be to an extent where it can no longer properly be said that, as a practical as well as a theoretical matter, the judges constitute the court. This means that the judges must continue to bear the major responsibility for the exercise of judicial power at least in
Exceptions to the Separation of Powers There are a number of recognised exceptions to the principle that judicial power can only be exercised by Ch III courts. Courts martial are not Ch III courts: they are regarded to be incidental to the exercise of the power of the Executive under the Constitution to maintain discipline in the armed forces: Re Tracey; Ex parte Ryan (1989) 166 CLR 518 The power to commit for contempt: through the operation of s 49 allowed this as an exception to the general rule that the power to commit contempt was vested in courts invested with judicial power. While the power to commit for contempt is regarded to be an immanent feature of a court (Re Colina; Ex parte Torney (1999) 200 CLR 386), both Houses of Federal Parliament may commit people for contempt of Parliament as part of the powers, privileges and immunities they enjoy under s49 of the Constitution. R v Richards; Ex parte Fitzpatrick & Browne (1954) 92 CLR 157. o The Court unanimously held that the power to commit for contempt was enjoyed by the House of Commons at Federation, and in view of the language of s49, the power of the Parliament to commit for contempt was an exception to the general rule that the power to commit for contempt was vested in Courts invested with judicial power.
Extra-Judicial Assignments: The Persona Designata Rule: judge may be appointed to undertake Ch II tasks: Chapter III judges can be appointed to undertake Chapter II tasks and be appointed to act in an executive role, for example, a Royal Commissioner, or to exercise executive functions, such as issue of a warrant, which will not infringe the separation of powers. Hilton v Wells (1984) 157 CLR 57 o The constitutional question was whether the provision empowering a Federal Court judge
Features of Chapter III Courts: Judicial tenure, Remuneration and Independence. Judicial Tenure Section 71 expresses that the federal parliament has the power to set up a federal court. Together section 71 and section 51(xxxix) [express and incidental power]: The coupling of these
Judicial independence requires tenure and financial security. Sir Anthony Mason has written that financial security is an indispensable condition of a strong and independent judiciary. This requirement is entrenched in s 72(iii) of the Constitution. For federally-appointed judges, remuneration amounts are set by an independent tribunal, made public, and done by way of an open determination from time to time. That is, the amount of remuneration is established and applies indefinitely, not for a finite period (a situation that would create the spectre (image) of judges tailoring their judgments to suit the government as the period of remuneration reached its conclusion). Austin v The Commonwealth (2003) HCA 3 o The case was brought by a number of Supreme Court judges against federal legislation that singled out State judges and imposed federal taxation on their superannuation entitlements. Justice Austin of the Supreme Court of New South Wales argued successfully that the Melbourne Corporation principle operated to invalidate the provisions. o The provision of secure judicial remuneration at significant levels serves to advantage and protect the interest of the body politic in several ways. Secure judicial remuneration at significant levels assists, as the United States Supreme Court has emphasised: to encourage persons learned in the law"to quit the lucrative pursuits of private business, for the duties of that important station". (attract people to the job) It also assists the attraction to office of persons without independent wealth and those who have practiced in less well paid areas. (encourage other areas and without independent wealth) Further, the Supreme Court of the United States has stressed that such provision helps "to secure an independence of mind and spirit necessary if judges are 'to maintain that nice adjustment between individual rights and governmental powers which constitutes political liberty'". (ensure that the needs are taken care of and that they are in the best position to make balanced and objective decisions)
More recently it has been suggested that in order to safeguard judicial independence it is necessary that judicial remuneration must only be provided by an open determination, and cannot be limited as to time. That is, it would be unlawful to appoint a judge until a statutory retirement age but only guarantee that judges remuneration for a period of 2 years North Australian Aboriginal Legal Aid Service v Bradley (2002) 192 ALR 701
Territory Courts The requirement of judicial tenure does not extend to all Courts set up under Federal law. As the source
More recently it has been argued that in spite of Spratt v Hermes and Eastman, a Territory cannot appoint a judge, putatively (generally) until a statutory retirement age, but then only guarantees that judge a salary for a shorter period: North Australian Aboriginal Legal Aid Service v Bradley (2002) 192 ALR 701 o It was argued that regardless of the jurisprudence of s 72 relating to judicial tenure and Territory judges, such an arrangement is repugnant to s 71 of the Constitution because it affects the institutional capacity of a judge capable of exercising federal jurisdiction to make impartial decisions. This argument was rejected by a majority of the Federal Court. Discussion of the case o Spratt v Hermes and Eastman said that section 72 does not apply in the territories, territory courts are not federal courts, and as they are not federal courts there judges do not have section 72 protection. o In Newcrest it was said that the power over territories is not plenary, rather, it is subject to limitations. o In the case before the Bradley was appointed by the government to the NT court under a 65 year deal but was only guaranteed remuneration for 2 years. o In most remuneration the deal consists of fixed pay from a particular date onward without a specific conclusion date o The deal for Bradley was negotiated and had an end date. o NAALIS challenged the constitutional validity of the appointment and the terms arguing that as the end date drew closer the influence of the government and policy considerations would increase o They argued that the objective test would imply that it would be possible for a higher amount of influence and hence this was inconsistent with judicial independence. o NAALIS argued a form of implied independence was present (section 72 did not apply in the territories)
Judicial Power of the Cth: How should judicial power be defined? In SGH Limited v Commissioner of Taxation [2002] HCA 18 at [40] [44], Gummow J remarked (in a different context but in words no less apt to an understanding of the meaning of judicial power): Questions of construction of the Constitution are not to be answered by the adoption and application of any particular, all-embracing and revelatory theory or doctrine of interpretation. Nor are they answered by the resolution of a perceived conflict between rival theories, with the placing of the victorious theory upon a high ground occupied by the modern, the enlightened and the elect. With these significant qualifications in mind, it is yet possible to identify a number of relatively distinct approaches to the definition of judicial power. These approaches may be termed, for ease of reference only, the historical approach (which emphasizes the utility of historical and traditional understandings of judicial power), the analytical approach (which emphasizes what are regarded to be the essential characteristics of judicial decision-making that distinguish it from other types of decision-making) and the functional approach (which emphasizes that some types of activities are common to courts and nonjudicial tribunals, and so the discriminating feature is whether the relevant powers have been (and can be) vested in a court): cf Lane, 1991, 224-246. While it is possible to identify these distinct approaches, it is evident from the material that follows that multiple approaches may be adopted in any particular case. A single approach, applied by different judges to the same set of facts, can produce divergent results. Sometimes a single approach commends itself to the judges, whether it is pleaded or not. Sometimes the judges do not indicate the approach that they are taking, but it is possible to rationalize a given decision under one of the headings suggested here. Before examining the different approaches that may be taken to the definition of judicial power it is important to note that judicial power of the Commonwealth is exercised in matters.
While the High Court may not itself give advisory opinions referred to it by the Federal executive, it may take appeals from advisory opinions delivered by State Supreme Courts.
Judicial power at 1900: A starting point for the determination of the meaning of the phrase judicial power is to consider what powers were in the minds of the lawyers/drafters of the Constitution at the Federation (that is, the connotation at Federation): Attorney-General for NSW v Brewery Employees Union of NSW (the Union Label Case) R v Davison (1954) 90 CLR 353. o Historical view was taken o A Federal deputy registrar of bankruptcy issued a sequestration (seizure) order upon the petition (appeal) of Davison. It was argued that a sequestration order (the taking of possession of a debtors property for the payment of debts) involved an exercise of judicial power, because it would deprive the bankrupt of property and the creditors of rights against the bankrupt. It affected the status of the bankrupt and exposed him to criminal prosecution. It was also argued that the nature of the hearing involved an exercise of judicial power. o A majority of the Court agreedIn doubtful cases, however, we employ a historical criterion. We ask whether, at the time our constitutions were adopted, the power in question was exercised by the Crown, by Parliament, or by the judges. Unless analysis compels us to say in a given case that there is a historical anomaly, we are guided by the historical criterion o Kitto J concluded that the power to make a sequestration order was an established
Other powers are exclusive to courts: The power of judicial review of legislative and executive action has already been noted as a fundamental power of the courts. Australian Communist Party v The Commonwealth (1951) 83 CLR 1 Marbury v Madison 1 Cranch 137 (1803) The power to adjudicate on existing legal rights and liabilities between persons is exclusive to courts. Waterside Workers' Federation of Australia v J W Alexander Ltd (1918) 25 CLR 434 The power to determine criminal guilt is an exclusive power of courts and cannot be excluded from the courts. Re Tracey; ex parte Ryan (1989) 166 CLR 518 Chu Kheng Lim v Minister for Immigration (1992) 176 CLR 1 Polyhukovich v The Commonwealth (1991) 172 CLR 501 The separation of judicial power guarantees that Ch III courts will not take instructions from the legislature regarding the manner in which their jurisdiction will be exercised, or the result of a case. Chu Kheng Lim v Minister for Immigration (1992) 176 CLR 1
The power to order judicial remedies: The power to order judicial remedies is entrenched by s 75(v) and also by s 75(iii) Plaintiff S157/2002 v Commonwealth [2003] HCA 2 o Two fundamental constitutional propositions (may be noted and they are that)First, the
Breadth of remedial powers So long as any powers conferred by the Parliament are consistent with Ch III requirements (such as, for example, the incompatibility condition), the Commonwealth Parliament may confer power to make orders that create rights or impose liabilities: Precision Data Holdings Ltd & Ors v Wills & Ors (1991) 173 CLR 167 at 191. An analytical (logical/systematic) approach to judicial power In R v Quin; Ex Parte Consolidated Foods Corporation (1977) it will ordinarily be necessary to supplement an historical approach to the question what is judicial power? with an approach that analyses the nature and effect of the power exercised. A classic test of judicial power that emphasised the legal effect of a decision and which has had lasting influence was enunciated by Griffith CJ in Huddart Parker Pty Ltd v Moorehead (1909) Provisions of an act were challenged on the basis that they vested judicial power in a non-judicial body. Court disagreed, on the basis that the provision was incidental to the administration of the Act.
A binding and authoritative decision Huddart Parker Pty Ltd v Moorehead (1909) 8 CLR 330 o Griffith CJ stated that the words judicial power as used in s71 of the Constitution mean the power which every sovereign authority must of necessity have to decide controversies between its subjects, or between itself and its subjects, whether the rights relate to life, liberty or property. The exercise of this power does not begin until some tribunal which has power to give a binding and authoritative decision (whether subject to appeal or not) is called upon the take action.
A binding decision (question 1): The power to make a binding decision is an essential component of judicial power. However, the word binding refers to the enforceability of the decision. It is the principle that only a Court exercising judicial power can make a legally enforceable decision: Brandy v Human Rights and Equal Opportunity Commission (1995) 183 CLR 245 Brandy v Human Rights and Equal Opportunity Commission (1995) 183 CLR 245 o The Commission was given the permission to register its determinations in the Federal Court. Determinations would take effect as a judgment of that Court in the event that they were not reviewed on application by the respondent to the proceedings within a prescribed period of time. o The Court held that the enforcement of legal decisions was an essential characteristic of judicial power, and that the provisions were invalid because they purported to give a registered determination effect as if it were an order made by the Federal Court. o Although many decision-making functions may take their character as an exercise of judicial, executive or legislative power from their legislative setting, the character of the decision-maker and the nature of the decision-making process, some decision-making functions are exclusive and inalienable exercises of judicial power.
An authoritative, conclusive decision (question 2): The word authoritative, in this context, means conclusive. While the power of enforcement is exclusive
To act judicially means to make decisions on the basis of the application of law to facts. A non-Chapter III body may act judicially, even state their opinion on questions of law, but only so long as the legislative scheme ensures that the parties have an opportunity to appeal to a Chapter III Court for the conclusive determination of any question of law arising in the proceedings. Controversies regarding rights relating to life, liberty or property the distinction between questions of law and questions of fact: Only a Ch III court can make binding and authoritative decision determining controversies where the rights relate to life, liberty or property: Huddart, Parker Pty Ltd v Moorehead (1909) In more recent decisions the Court has used the shorthand expression questions of law to define the type of questions which fall within the exercise of judicial power. Non-Chapter III bodies are entitled to form opinions as to the effect of the law, and may even base their decisions on these opinions, but must be cautious not to usurp the role of Chapter III Courts in making binding and conclusive determinations of questions of law. The question is whether the non-judicial tribunal purports to determine legal rights, as opposed to stating its opinion whether the law applies to facts as found. An opinion is permissible but a conclusive determination is not. Re Cram & Ors; Ex parte Newcastle Wallsend Coal Company Pty Ltd (1987) 163 CLR 140 o The Court confirmed that tribunals were entitled to form views and opinions with respect to matters of interpretation without having exercised judicial power in having done so.
Questions of fact:
Administrative and judicial bodies may engage in the same tasks the distinction is based on the purpose for which the powers have exercised: The power of non-judicial tribunals to ascertain facts and to take jurisdiction over facts is a common feature of administration and does not usurp judicial power of the Commonwealth. R v Hegarty; Ex parte City of Salisbury (1981) 147 CLR 617 o Mason J statedIt is recognized that there are functions which may be classified as either judicial or administrative, according to the way in which they are to be exercised. A function may take its character from that of the tribunal in which it is reposed (rested). Thus, if a function is entrusted to a court, it may be inferred that it is to be exercised judicially; it is otherwise if the function be given to a non-judicial tribunal, for then there is ground for the inference that no exercise of judicial power is involved.
As Chapter III Courts and non-Chapter III tribunals may engage in a number of identical tasks, the question whether a power is to be characterised as administrative or judicial is often a jurisdictional question.
Are there any powers that may not be vested in a court? The distinction between legal decision and policy decisions. A key difference between administrative power and judicial power is the way in which policy considerations can arise and inform decision-making. Precision Data Holdings Ltd & Ors v Wills & Ors (1991) 173 CLR 167 o [So long as any discretionary authority conferred upon a Court] is to be exercised according to legal principle or by reference to an objective standard or test prescribed by the legislature and not by reference to policy considerations or other matters not specified by the legislature, it will be possible to conclude that the determination by the court gives effect to rights and obligations for which the statute provides and that the determination constitutes an exercise of judicial power
While policy considerations may play a role, even a decisive role in the shaping of legal principles, where legislation vests powers in a tribunal to determine matters having regard to policy considerations outlined by statute, this will indicate that the body is not exercising judicial power of the Commonwealth. It does not follow that a Chapter III Court may not have regard to policy considerations when exercising judicial power, but judicial power is characterised by the application of objective legal standards. R v Spicer; Ex parte Australian Builders Labourers Federation (1956) 100 CLR 277 o The extent to which judicial power depends on objective standards or tests was a question considered in this case. o Involved a provision of Federal industrial law which enabled the Cth Industrial Court to make certain discretionary orders disallowing union rules for unions registered under the law, having regard to particular issues of industrial law and policy. o The court was given power to make these orders on its own motion. o It was argued that to the extent that the court could act of its own motion and might have regard to issues of industrial policy in making its determination, these powers could not be validly vested in a Ch III court. o Court struck down the provision: It was noted that the power to commit for contempt involved an exercise of judicial power where a Court acted of its own motion, but that this was a special case. However, the fact that the power gave a complete discretion based wholly on industrial or administrative considerations indicated that it was outside judicial power.
Judicial power is characterised by the conclusive ascertainment of existing rights and obligations, rather than the determination of what legal rights and obligations should be created: Judicial power is characterised by the conclusive ascertainment (know with certainty) of existing legal rights and obligations, rather than the determination of what legal rights and obligations should be created Another basis for distinguishing judicial power from non-judicial power relates to the temporal quality of the judicial process. Existing legal rights a proper place for the exercise of judicial power Future legal rights a proper place for the exercise of legislative and executive power Precision Data Holdings Ltd & Ors v Wills (1991) 173 CLR 167 o The High Court considered the possibility that Chapter III Courts might be vested with jurisdiction to make orders creating rights or imposing liabilities. o If the object of the adjudication is not to resolve a dispute about the existing rights and obligations of the parties by determining what those rights and obligations are but to determine what legal rights and obligations should be created, then the function stands outside the realm of judicial power o The power of inquiry and determination is a power which properly takes its legal character from the purpose for which it is undertaken. Thus inquiry into and determination of matters in issue is a judicial function if its object is the ascertainment of legal rights and obligations. But if its object is to ascertain what rights and obligations should exist, it is properly characterized as an arbitral function when performed by a body charged with the resolution of disputes by arbitration.
On certain condition, the legislature may grant power to the judicature to make orders affecting future rights. It is well established that the Parliament can legislate with retrospective and prospective effect: R v Kidman (1915) 20 CXLR 425. It is also well established that the legislature can change statutory rights at issue in pending litigation: Australian Building Construction Employees & Builders Labourers Federation v The Commonwealth (the BLF case) (1986) 161 CLR 88
The separation of powers may therefore give rise to a number of implied rights enjoyed by people participating in the judicial process. R v Quinn; Ex parte Consolidated Foods Corporation (1977) 138 CLR 1 Jacobs J said: o We have inherited and were intended by our Constitution to live under a system of law and government which has traditionally protected the rights of persons by ensuring that those rights are determined by a judiciary independent of the parliament and the executive. But the rights referred to in such an enunciation are the basic rights which traditionally, and therefore historically, are judged by that independent judiciary which is the bulwark (safeguard) of freedom. The governance of a trial for the determination of criminal guilt is the classic example. But there are a multitude of such instances
Implied rights arising from the exclusive power of the courts to determines Criminal Guilt: This is a power which is exclusive to the Judicature and, with a few exceptions, can only be exercised by the Judicature. Chu Kheng Lim v Minister for Immigration (1992) 176 CLR 1 o There are some functions which, by reason of their nature or because of historical considerations, have become established as essentially and exclusively judicial in character. The most important of them is the adjudgement (judicial decision) and punishment of criminal guilt under a law of the Commonwealth. That function appertains (belongs) exclusively to and could not be excluded from the judicial power of the Commonwealth
Exceptions: There are some qualifications which must be made to the general proposition that the power to order that a citizen be involuntarily confined in custody is, under the doctrine of the separation of judicial from executive and legislative powers enshrined in our Constitution, part of the judicial power of the Commonwealth entrusted exclusively to Ch III courts. The most important is the arrest and detention in custody, pursuant to executive warrant, of a person accused of crime to ensure that he or she is available to be dealt with by the courts. Such committal to custody awaiting trial is not seen by the law as punitive or as appertaining (belonging) exclusively to judicial power. Even where exercisable by the Executive, however,
Otherwise, and putting to one side the traditional powers of the Parliament to punish for contempt and of military tribunals to punish for breach of military discipline, the citizens of this country enjoy, at least in times of peace, a constitutional immunity from being imprisoned by Commonwealth authority except pursuant to an order by a court in the exercise of the judicial power of the Commonwealth The judicial power of the Commonwealth is infringed by legislation which purports to remove the power of a Chapter III Court to make a determination of criminal guilt before incarceration: The separation of judicial power removed the power of the legislature to enact a bill of attainder or bill of pains and penalties a law which automatically declared the guilt of a person and subjected them to punishment. Polyukhovich v The Queen (1991) 172 CLR 501 Chu Kheng Lim v Minister for Immigration and Ethnic Affairs (1992) 176 CLR 1 Kable v Director of Public Prosecutions for New South Wales (1996) 189 CLR 51
The separation of powers and the rules of evidence and burden of proof: However, while the parliament cannot tell the courts how to exercise its criminal jurisdiction, it has considerable power to regulate the fact-finding exercise leading to a conclusion of guilt, and may even have the power to reverse the onus of proof. The degree of legislative power in this area was considered in Nicholas v The Queen (1998) Challenged the constitutional validity of amendment to the Federal Crimes Act (1914) which required courts vested with jurisdiction to determine criminal guilt in matters concerning the controlled importation of narcotics. Argued tat to remove the discretion of judges to exclude evidence on the basis that it was unfairly obtained usurped judicial power and was therefore unconstitutional HC rejected this argument The parliament can prescribe what evidence may be used in legal proceedings and perhaps even regulate the burden of proof and this will not usurp judicial power The Parliament can change statutory rights at issue in pending litigation: The Cth Parliament can legislate with prospective and retrospective effect: R v Kidman (1915), R v Humby; Ex Parte Rooney (1973) This power extends to enable the parliament to criminalise conduct retrospectively: Polyukhovich v Commonwealth (1991). It is also well established that the Legislature can change statutory rights at issue in pending
The principles of natural justice, or procedural fairness require a right to a fair hearing which is free from bias. The measure of these rights depends on the circumstances of the case and ordinarily the degree of procedural fairness implied will, subject to statutory and other recognised exclusions, be consistent with the significance of the right or interest at stake. However, There is no implied constitutional right to a fair trial Hinch v Attorney-General for Victoria (1987) 164 CLR 15 o Deane JThe right of a fair and unprejudiced trial is an essential safeguard of the liberty of the individual under the law. The ability of a society to provide a fair and unprejudiced trial is an indispensable basis of any acceptable justification of the restraint and penalties of the criminal law. Indeed, it is a touchstone of the existence of the rule of law. Dietrich v The Queen (1992) 177 CLR 292 o Dietrich was charged with the Federal crime of importing a trafficable quantity of heroin into Australia. He applied for legal aid and his application was rejected. He was unsuccessful in seeking review of this application. After further attempts to receive legal assistance including representations to the Commonwealth Minister for Justice and Attorney-General he went to trial. At the trial he applied unsuccessfully for an adjournment, and was convicted. His application for leave to appeal to the Victorian Court of Criminal Appeal was rejected. He then applied for special leave to appeal to the High Court. o A majority of the Court recognised that there was a common law right to a fair trial. Deane and Gaudron JJ recognised a constitutionally entrenched right to a fair trial, as emanating from the separation of judicial power under the Australian Constitution. o The fundamental prescript of the criminal law of this country is that no person shall be convicted of a crime except after a fair trial according to law. In so far as the exercise of the judicial power of the Commonwealth is concerned, that principle is entrenched by the Constitutions requirement of the observance of judicial process and fairness that is
Is there an implied constitutional right of equality? Some judges have suggested that there is an implied constitutional right of equality before the law: Leeth v Commonwealth (1992) 174 CLR 455. o This case concerned a challenge to Federal legislation which enabled persons imprisoned for Federal offences to have their non-parole periods determined under the local law of the State or Territory in which they were tried and convicted. It was argued that this law infringed an implied principle of equality before the law. o A majority of the Court rejected this argument and held thatthere is no general requirement contained in the Constitution that Commonwealth laws should have a uniform operation throughout the Commonwealth There are also specific provisions prohibiting discrimination or preference of one kind or another, but these are confined in their operation o In this case, however, the legislation in question did not require a court invested with federal jurisdiction to perform a function which could be described as non-judicial. The sentencing of offenders, including in modern times the fixing of a minimum term of imprisonment, is as clear an example of the exercise of judicial power as possible o Brennan J emphasised the purpose of s 120 of the Constitution to ensure that Commonwealth prisoners and State prisoners serving their terms in State prisons were governed by substantially the same regime. Any inequality of treatment which was the consequence of different State provision with respect to non-parole periods was contemplated by s 120 o Deane and Toohey JJ struck down the Federal law on the basis that it discriminated in such a way which was inconsistent with the doctrine of the underlying equality of the people of the Commonwealth under the law and before the courts o Gaudron J said that it was manifestly absurd that the legal consequences attaching to a breach of a law of the Commonwealth should vary merely on account of the location or
Jurisdictional issue: laws of the Cth: states and territories are not the Cth s80 doesnt apply in the states and territories Restricted to the laws of the Cth parliament Maybe it does apply to in Territories need to look more closely.
Section 80 of the Constitution provides: 80. Trial by jury The trial on indictment of any offence against any law of the Commonwealth shall be by jury, and every trial shall be held in the State where the offence was committed, and if the offence was not committed within any State the trial shall be held at such place or places as the Parliament prescribes. Section 80 does not apply to the States or Territories The scope of s 80 is restricted by the fact that it applies to any law of the Commonwealth it therefore does not limit the legislative power of the States: Byrnes v The Queen (1999) 199 CLR 1 o It is about the laws of the Cth o Byrne was being charged under a State legislation: Byrne said I am entitled to trial by jury o HC said no R v Bernasconi (1915) 19 CLR 629 o It has also been held that s 80 does not apply in the Territories, although this view has been criticised. o B was a guy who lived in PNG which was a territory of the o B was in charge of indigenous workers, he ended up murdering someone o Cth legislation applied the QLD criminal code to the territory of PNG o Judge purported to hear the trial without jury o B said he was entitled to a jury o Entire HC said B loses because Ch III doesnt apply in the territories o This case is the source of the justification for Spratt and Eastmans Case (1st case and the other followed) o This decisions is wrong o ChIII describes judicial power of the Cth. The territories are part of the Cth o Where else would it apply if not the territories? o Lead to stupid case law like Spratt and Eastman
What are proceedings on indictment? Representation on both sides. These are not summary proceedings. The language does not say indictable offences it says trial on indictment Proceedings on indictment involve the formal setting out of charges against the accused on oath by a representative of the Queen before a grand jury this is distinguishable from summary proceedings, where a person typically appears before a magistrate only. However section 80 is not a general guarantee of trial by jury in cases involving serious offences Kingswell v The Queen (1985) 159 CLR 264 at 310311
A literal approach The literal approach to the interpretation of this 1st phrase of section 80 of the HC has resulted in the provision having a very narrow field of operation. A literal approach to s 80 enables the Cth to circumvent any requirement that trial be by jury by providing that offences may be tried otherwise than on indictment that is, if proceedings are on indictment then there is trial by jury (has been criticised but is good law). R v Archdall and Roskruge; Ex parte Carrigan and Browne (1928) 41 CLR 128 o In this case two union officials were separately charged, in summary proceedings, with offences against the Crimes Act 1914 (Cth) relating to their activities in organising strikes. The case turned on the interpretation of a number of apparently conflicting provisions in the Crimes Act and the Acts Interpretation Act 1904 (Cth).
The right to trial by jury cannot be waived by the accused If a Federal law provides for proceedings on indictment, then the words of s 80 literally require that there shall be trial by jury and, consequently, the accused does not have the discretion to waive this right. Brown v The Queen (1986) 160 CLR 171 o Here, B was charged with Federal drug offences and tried on indictment. B elected not to have a jury and the trial judge ruled that s 80 disabled the accused from making that election. B was tried and convicted. o On appeal to the High Court, Brennan, Deane and Dawson JJ held that the constitutional guarantee of trial by jury in s 80 could not be waived by B. The majority adopted a literal approach to the word shall in s 80, and concluded that the provision requires that proceedings on indictment for Commonwealth offences use trial by jury. Deane J described the constitutional guarantee of trial by jury in s 80 as a right and not a privilege. o The language it says shall be by jury o Brown did not want a jury, just wanted it to be in front of a judge. o HC said says SHALL which means MUST Brownlee v The Queen (2001) HCA 36 o An application for leave to reopen Brown v The Queen was refused.
The content of the right an historical approach to trial by jury The High Court has adopted an historical approach to determine the content of the phrase trial by jury
Cheatle v The Queen (1993) 177 CLR 541 o The High Court, in a unanimous judgment, held that s 80 was to be understood in accordance with the common law history of criminal trial by jury at Federation, adapted to accord with contemporary standards o This case involved a challenge to the validity of the Juries Act 1927 (SA), which made provision for majority verdicts (of ten or eleven jurors out of twelve) to be returned in circumstances where, after at least four hours of deliberation, the parties were not able to reach a unanimous verdict. The appellants had been charged with conspiracy to defraud the Commonwealth, an indictable offence arguing that the section required that any conviction of such an offence must be by a unanimous jury. o The Court said that unanimous jury verdicts had been a requirement at common law since the fourteenth century and the clear weight of judicial authority supported the unanimity requirement. The requirement could be justified on the grounds that it ensured that the representative character and the collective nature of the jury was carried forward into any ultimate verdict; on the basis that the requirement provides some insurance that the opinions of each of the jurors will be heard and discussed thereby reducing the danger of hasty and unjust verdicts; and on the basis that the requirement reinforced the rule that a person accused of a crime should be given the benefit of any reasonable doubt o majority verdict for federal legislation is constitutionally invalid o S80 requires unanimous verdict o Unanimous HC said that is correct
The State of South Australia, intervening, challenged the adoption of this historical approach o In 1900 the characteristic features of the jury as an institution were that its members were twelve in number, were male, had a significant property qualification, were locally selected, were susceptible to a specified number of challenges, had to be unanimous, did not give reasons, their verdict of acquittal was absolute, and an alien could require a jury de medietate linguae. Neither history nor concepts of substance and procedure provide a sound basis for deciding which of those features can be discarded. It could not have been intended that all those features were immutable: at 545. A unanimous High Court rejected this view and endorsed the historical approach to the interpretation of the provision but the results of that historical inquiry could be modified to accommodate contemporary standards. Accordingly, when determining the scope of the constitutional guarantee of trial by jury, it is necessary to consider the content of that method of trial in 1900, and then to consider what adjustments might be contemplated by the High Court in order to conform with contemporary standards and to bring about a situation which is more truly representative of the community. A unanimous jury of 6, or 10, but not 12 is required:
Freedom of Religion Section 116 of the Constitution provides: The Commonwealth shall not make any law for establishing any religion, or for imposing any religious observance, or for prohibiting the free exercise of any religion, and no religious test shall be required as a qualification for any office or public trust under the Commonwealth. Section 116 limited in scope Doesnt apply to the states States can make laws making laws about religion Not resolved in the states Attorney-General for Victoria; ex rel Black v The Commonwealth (the DOGS case) (1981) 146 CLR 559 o Although s 116 appears, incongruously, in a chapter entitled The States, it is said to have no application to the States and the High Court has not yet resolved the question whether s 116 applies to laws made under the Territories power, s 122 Lamshed v Lake (1958) 99 CLR 132 o Dixon CJ, with whom Webb, Kitto and Taylor JJ agreed, said (obiter) that there was no reason why s 116 should not apply to laws made under s 122. o This view was approved by Toohey, Gaudron and Gummow JJ in Kruger v The Commonwealth (1996) 146 ALR 126 at 173, 202 and 237 respectively. That the protection afforded by s 116 applies to every law of the Commonwealth is, however, beyond doubt.
What is a religion?
The establishment clause: Attorney-General (Vic); ex rel Black v Commonwealth (the DOGS case) (1981) 146 CLR 559. o Here, the Commonwealth passed State Grants Acts which gave financial assistance to the States subject to conditions, including, in this instance, that a portion of the monies be given to non-government schools. Non-government schools are typically operated by religious groups. It was argued that the grants Acts were laws establishing religion in that they provided financial support to these religions, or alternatively, that the laws
However, while it may be argued that the need to maintain social order is heightened during wartime; requirements of social order have persisted in a number of peacetime decisions. For example, the need for social order has been held, in some circumstances, to require the award of custody to a party to a marriage who is not avidly religious, on the basis that the welfare of the child may be enhanced by awarding custody to a non-religious person rather than to an avidly religious person: In the Marriage of Paisio (1978) 26 ALR 132 Implied constitutional freedoms The implied freedom of speech to discuss political and governmental affairs The idea of such an implied freedom was first discussed in obiter in Davies v The Commonwealth (1988) While the Constitution contains few express rights and freedoms the HC has recognise that the text and structure of the Constitution, including the system of representative and responsible government it creates may give rise to a number of implied freedoms from governmental power: Lange v ABC (1997) Jurisprudence on the implied freedom speech. Nationwide News Pty Ltd v Wills (1992) 177 CLR 1 o This was the first case which recognised an implied freedom of speech. o The case concerned the validity of a provision of Federal industrial relations legislation which made it an offence to use words calculated to bring a member of the Australian Industrial Relations Commission into disrepute. The defences which were ordinarily available to persons charged with contempt or accused of defamation were not available under the law. o The High Court held that the provision was unconstitutional on the basis that it was not appropriate and adapted to achieving the purpose of s 51(xxxv). The curtailment (limitation) of freedom of speech contemplated by the provision was disproportionate to s
Stephens v West Australian Newspapers Ltd (1994) 182 CLR 211 Theophanous v Herald & Weekly Times Ltd (1994) 182 CLR 104 o This case concerned a letter published in the Sunday Herald Sun (Melbourne) which was critical of the plaintiffs views on immigration policy. The plaintiff was a member of Federal Parliament who brought proceedings against the defendants for defamation. The defendant argued that the publication was protected by the implied freedom to discuss government and political matters. o A majority of the Court recognised a constitutional defence to defamation which appeared to posit (imagine) the implied freedom of speech as a personal right, holding that: (1) There is implied in the Commonwealth Constitution a freedom to publish material: (a) discussing government and political matters; (b) of and concerning members of the Parliament of the Commonwealth of Australia which relates to the performance by such members of their duties as members of the Parliament or parliamentary committees; (c) in relation to the suitability of persons for office as members of the Parliament. (2) In the light of the freedom implied in the Commonwealth Constitution, the publication will not be actionable under the law relating to defamation if the defendant establishes that: (a) it was unaware of the falsity of the material published; (b) it did not publish the material recklessly, that is, not caring whether the material was true or false; and (c) the publication was reasonable in the circumstances. (3) A publication that attracts the freedom implied in the Commonwealth Constitution can also be described as a publication on an occasion of qualified privilege. Whether a federal election is about to be called is not a relevant consideration. o The majority posited (put for consideration) the existence of this broader implied freedom on the basis that the Constitution is based on principles of representative democracy and this might give rise to any implications which were necessary to sustain a representative democracy. o implied freedom is only a limitation on the legislative power (minority) o You can use the implied freedom in ordinary litigation (majority) Theophanous and Stephens seemed to presage (signify) High Court activism in the development of implied constitutional rights. However, the correctness of Theophanous and Stephens, and in particular, the reasoning upon which those decisions was based, was doubted in Lange v Australian Broadcasting
The limits of the High Courts capacity to develop implied freedoms from the system of representative government were confirmed in: Lange v Australian Broadcasting Corporation (1997) 189 CLR 520. In that case, the High Court said: o The divergence of opinion among the justices of the High Court regarding the nature and scope of the implied freedom of speech was removed. In 1991 the plaintiff, a member of the New Zealand Parliament and former Prime Minister, brought defamation proceedings against the ABC alleging that he had been defamed during the Four Corners programme broadcast on 30 April 1990. The ABC relied on a number of defences including that the matter complained of was published pursuant to a freedom guaranteed by the
Coleman v Power (2004): Coleman: activist in Townsville Power: policeman Hippy v Cop Coleman said to power that you are corrupt The context: Coleman was giving out pamphlets in Townsville Mall. LOCATION is a public place (it is a regulated by the local council) Regulation which regulate the use of the mall, they can use it for different things but regulated to some degree to ensure people can use mall without affecting rights or each other Does Coleman has the right to stand up and say Power is a corrupt cop? Power said stop it. He was using s7(1)(d) QLD Vagrants Act (basically bums and hobos)
Application of the new principle: Levy v Victoria (1997) 189 CLR 579
Other implied freedoms? Other implied freedoms may arise from the system of representative and responsible government
While arguments in support of the existence of these additional implied freedoms may be compelling, they have not yet been approved by the majority of the High Court in the ratio of any decision. As Gummow J commented in Kruger: The problem is knowing what rights are to be identified as constitutionally based and protected, albeit they are not stated in the text, and what methods are to be employed in discovering such rights. Recognition is required of the limits imposed by the constitutional text, the importance of the democratic process and the wisdom of judicial restraint.