Re Australian Education Union (1995) 184 CLR 188 is a High Court of Australia case that discusses intergovernmental immunity in relation to the Australian Constitution.
Under a Commonwealth law, the Australian Industrial Relations Commission can refrain from hearing a dispute if it thought it could be handled in a State body. However, Victoria abolished their State-based systems, and argued that the law was thus discriminatory. Furthermore, there was the issue of whether Commonwealth orders that applied to State employees would prevent the State from exercising their essential functions.
In a joint judgment, the Court accepted the principles of discrimination and structural integrity as laid down in Melbourne Corporation v Commonwealth. In this case, no discrimination was found, but the court found that the law affected the structural integrity of the State.
As for discrimination, there were two issues to consider. Firstly, even though the purpose of the law was to discriminate against Victoria, that is not a factor to consider. Secondly, in its practical effect, it could apply to any State, as well as to any industrial employees.
As for the structural integrity argument, it is required that the law directs attention to aspects of a State's functions that are "critical to its capacity to function". Being able to determine minimum wages and working conditions of its employees, especially those in the higher levels of government, is critical to a State's capacity to function.
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