Clarke v Commissioner of Taxation [2009] HCA 33

Clarke v Commissioner of Taxation [2009] HCA 33

The ratio is that the Commonwealth legislation (the Imposition Act and the Assessment Act) is invalid in its application to the appellant insofar as it purports to create liability of the appellant to superannuation contributions surcharge in respect of his membership of the Parliamentary Superannuation Scheme, the State Superannuation Benefit Scheme and the Southern State Superannuation Scheme, as it significantly impairs the capacity of the State of South Australia to fix remuneration and retirement benefits for its parliamentarians, contrary to the constitutional limitation imposed by the federal structure.

Parties
Appellant: Ralph Desmond Clarke; First Respondent: Commissioner of Taxation; Second Respondent: Attorney-General for the State of South Australia
Jurisdiction
Australia
Judgment Date
02 September 2009
Procedural Posture
Appeal / Final Appellate Decision
Outcome
Appeal allowed
Legal Topics
Implied Limitation on Commonwealth Legislative Power, Melbourne Corporation Doctrine, Discrimination Against States, Superannuation Contributions Surcharge, State Parliamentary Pensions
Constitutional Law Taxation Law Superannuation Law Implied Limitation on Commonwealth Legislative Power Melbourne Corporation Doctrine Discrimination Against States Superannuation Contributions Surcharge State Parliamentary Pensions

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Parties

Ralph Desmond Clarke

Appellant

Commissioner of Taxation

First Respondent

Attorney-General for the State of South Australia

Second Respondent

Procedural Posture

Appeal / Final Appellate Decision

Legal Issues

  1. 1 Are the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997 (Cth) and/or the Assessment Act invalid in their application to the appellant, on the ground that they so discriminate against the State of South Australia or so place a particular disability or burden upon the operations and activities of the State of South Australia as to be beyond the legislative power of the Commonwealth?
  2. 2 Does the Imposition Act impose a tax on property belonging to the State of South Australia contrary to section 114 of the Commonwealth Constitution?

Ratio Decidendi

The ratio is that the Commonwealth legislation (the Imposition Act and the Assessment Act) is invalid in its application to the appellant insofar as it purports to create liability of the appellant to superannuation contributions surcharge in respect of his membership of the Parliamentary Superannuation Scheme, the State Superannuation Benefit Scheme and the Southern State Superannuation Scheme, as it significantly impairs the capacity of the State of South Australia to fix remuneration and retirement benefits for its parliamentarians, contrary to the constitutional limitation imposed by the federal structure.

Court Disposition

Appeal allowed

Orders

  • Set aside order 1 of the Full Court of the Federal Court of Australia made on 13 June 2008.
  • In lieu thereof, declare that the Imposition Act and the Assessment Act are invalid insofar as they purport to create the liability of the appellant to superannuation contributions surcharge in respect of his membership of the Parliamentary Superannuation Scheme, the State Superannuation Benefit Scheme and the...