Roy Morgan Research Pty Ltd v Commissioner of Taxation [2011] HCA 35

Roy Morgan Research Pty Ltd v Commissioner of Taxation [2011] HCA 35

The superannuation guarantee charge imposed on employers is a tax within the meaning of s 51(ii) of the Constitution, because it is a compulsory exaction enforceable by law, paid into the Consolidated Revenue Fund for public purposes, and is not a payment for services rendered. The benefit conferred to employees via...

Source-derived case information.

Parties
Appellant: Roy Morgan Research Pty Ltd; First Respondent: Commissioner of Taxation; Second Respondent: Attorney-General of the Commonwealth
Jurisdiction
Australia
Judgment Date
28 September 2011
Procedural Posture
Appeal / High Court Determination on Appeal From the Federal Court of Australia
Outcome
Appeal dismissed
Legal Topics
Superannuation Guarantee Charge, Section 51(ii) of the Constitution, Definition of Taxation, Public Purposes in Taxation, Validity of Federal Imposts
Constitutional Law Taxation Law Superannuation Guarantee Charge Section 51(ii) of the Constitution Definition of Taxation Public Purposes in Taxation Validity of Federal Imposts

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Parties

Roy Morgan Research Pty Ltd

Appellant

Commissioner of Taxation

First Respondent

Attorney-General of the Commonwealth

Second Respondent

Procedural Posture

Appeal / High Court Determination on Appeal From the Federal Court of Australia

Legal Issues

  1. 1 Is the superannuation guarantee charge imposed by the Superannuation Guarantee (Administration) Act 1992 (Cth) and Superannuation Guarantee Charge Act 1992 (Cth) a tax under s 51(ii) of the Constitution?
  2. 2 Does the legislative scheme confer a private and direct benefit rather than serve a public purpose, thereby making the impost invalid as a tax under the Constitution?

Ratio Decidendi

The superannuation guarantee charge imposed on employers is a tax within the meaning of s 51(ii) of the Constitution, because it is a compulsory exaction enforceable by law, paid into the Consolidated Revenue Fund for public purposes, and is not a payment for services rendered. The benefit conferred to employees via superannuation funds does not render the charge private in nature, nor does the scheme invalidate the legitimacy of the charge as a tax.

Court Disposition

Appeal dismissed

Orders

  • Appellant to pay the costs of the first respondent