The major constitutional cases of the century have generally swung the balance of power from the states to the Commonwealth. Or they have defined no-go areas where neither the Commonwealth nor the states can tread.
Selecting the major cases invites contention, but most constitutional historians would agree on a core of up to a dozen cases out of the 10,000 cases decided.
I have selected seven. The first, the Engineers case in 1920, is perhaps the High Court’s most important decision.
In its first 17 years, the High Court developed two doctrines: the doctrine of reserved state powers and the doctrine of immunity of instrumentalities.
The first was that, at the time of federation, the states handed a list of powers to the Commonwealth. These were concurrent powers. That meant the states could still exercise any of those powers if the Commonwealth did not legislate in the area. The states, under the implied prohibitions doctrine, were entitled to exercise all the remaining powers to their full extent.
So Commonwealth powers had to be interpreted in a restrictive way that did not intrude upon the area of state power – the reserved state powers. The finite list of subjects assigned to the Commonwealth left a wide area of reserved authority for the states where the Commonwealth could not go.
The doctrine of the immunity of instrumentalities meant that the Commonwealth could not interfere with the ordinary exercise of state legislative or executive power and vice versa. So Commonwealth public servants did not have to pay state income taxes (which existed in those days). And state employees (like railway workers) did not have to submit to the Commonwealth industrial and arbitration system.
By 1920 the original Justices had gone and the court had been expanded to five, setting the stage for a major shift.
The national engineers union, the Amalgamated Society of Engineers, wanted the right to enter the premises of employers – including state departments and authorities — to check on the working conditions of apprentices.
The Constitution gives the Commonwealth Parliament power to make laws with respect to “the conciliation and arbitration for the prevention and settlement of industrial disputes extending beyond the limits of any one state’’. The Commonwealth Conciliation and Arbitration Act 1904 provided for a Commonwealth Court of Conciliation and Arbitration to deal with interstate industrial disputes such as the engineers’ dispute. But the states objected to having their departments and instrumentalities being subjected to that court’s rulings. They relied on the doctrine of reserved State powers and the doctrine of immunity of instrumentalities.
A majority of the Court — Chief Justice Knox and Justices Isaacs, Higgins, Rich and Starke, with Justice Gavan Duffy dissenting – held that the Commonwealth Parliament had power to make laws binding on state ministers, departments and instrumentalities as employers with respect to industrial disputes extending beyond the limits of one state.
The judges said the correct approach was to construe the meaning of the words of the Constitution like any other law to see what power had been given to the Commonwealth. Once that was done a prohibition against the exercise of that power could not be implied in the Constitution. If an Act of Parliament came within that power in the Constitution it would be valid.
This case in effect swept aside the notion that the states’ had some implied powers where the Commonwealth could not tread. The Commonwealth could exercise its listed powers within the ordinary meaning of the words. Over the years, the Commonwealth has done just that and as it has done so its legal footprint has grown larger.
2. The Uniform Tax case.
The first Uniform Tax Case, heard in 1942, saw the High Court hold in favour of the exercise of even wider central power. The Commonwealth enacted four laws, which together spelled a practical end to the States’ ability to levy income tax. One law imposed an income tax at a rate of up to 90 per cent, thereby leaving the States very little room to impose their own tax. A second law offered grants to those States which voluntarily refrained from imposing an income tax. A third law said the Commonwealth could take over any officers, offices and other physical means that the States used in any attempt to levy an income tax and the fourth law gave the Commonwealth’s taxes priority – forbidding people to pay the State tax until they had paid the Federal one.
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