Decision
Gaudron, Gummow and Hayne JJ rejected the separate discrimination limb found in the Melbourne Corporation principle. In their view, if Melbourne Corporation is read carefully, it is more concerned with a state's ability to function i.e. the structural integrity limb of the principle was paramount. For a law to infringe the Melbourne Corporation principles it must ultimately infringe the state's structural integrity. While they reject the two-limbed principle, they do not offer an alternative, instead conflating the principles into a single principle of structural integrity. In applying the facts, the majority stressed the importance of judicial remuneration in attracting suitable judges and securing their independence. They found this tax effectively forced the states to adjust their remuneration in order to safeguard judicial standards i.e. increase judges pay. For this reason, they found the law impaired the states' ability to exercise their essential functions.
In a separate judgment for the majority Gleeson CJ found the discrimination element of the Melbourne Corporation was part of a broader principle of structural integrity. Hence the two-limbed test in Melbourne Corporation is reduced to a one-limbed test. The Commonwealth's imposition of the charge forced states to alter their remuneration arrangements, which impaired their constitutional status and integrity.
McHugh J was the only judge to endorse the two-limbed Melbourne Corporation principle. He thought the two-limbed test was well-settled and there was no need to alter it. On application of the first limb (discrimination) he found the Commonwealth law in singling out (and thus discriminating against) state judges placed a burden upon the states and was thus invalid. His reasoning thus implicitly links the two limbs of the test.
Kirby J agreed with the majority's assessment that the Melbourne Corporation principle is actually reducible to a one-limbed test. However on application of this one-limbed test, he found that the burden on states of having judges with higher tax liabilities (i.e. a high state remuneration burden) was not heavy enough to impair state functioning. The effect, he argued, was marginal at best. Kirby J noted that the other judges exaggerated the burden on states, and were sensitive to issues of judicial pay. He also pointed out that judge's salaries are subject to a wide variety of taxes and charges, asking how this single charge could affect a state's capacity to carry out its essential functions. Thus, while he dissented on the outcome, Kirby J agreed with the majority on the law.
Overall, the court confirmed its interpretation of the Melbourne Corporation principle, that it is a one-limbed principle concerning the structural integrity of the states and their ability to exercise their functions.
Read more about this topic: Austin V Commonwealth
Famous quotes containing the word decision:
“Drug misuse is not a disease, it is a decision, like the decision to step out in front of a moving car. You would call that not a disease but an error of judgment.”
—Philip K. Dick (1928–1982)
“How could a man be satisfied with a decision between such alternatives and under such circumstances? No more than he can be satisfied with his hat, which he’s chosen from among such shapes as the resources of the age offer him, wearing it at best with a resignation which is chiefly supported by comparison.”
—George Eliot [Mary Ann (or Marian)
“A good decision is based on knowledge and not on numbers.”
—Plato (c. 427–347 B.C.)