The ACT Government has to be concerned about the High Court’s ruling in the X-rated video case last week, at least in the long-term.
In the short-term it is of little moment. The tax can be quite easily restored.
But first let’s look at what the court said. Section 90 of the Constitution says the power of the Federal Parliament to impose excise is an exclusive power. That means State and Territory Parliaments cannot levy excise taxes. But the precise definition of excise has troubled the High Court for the past 80 years.
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