Deputy Federal Commissioner of Taxation (NSW) v W R Moran Pty Ltd
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Deputy Federal Commissioner of Taxation (NSW) v W R Moran Pty Ltd (1939) 61 CLR
735 is a High Court of Australia
case that deals with whether section 96
is limited by section 99, which prevents Commonwealth laws discriminating between States.
In this case, the Commonwealth imposed a tax on flour millers, but reimbursed the States based on their production of wheat in order to reimburse the flour millers by 90% of their taxes. The problem is that Tasmania
, while milling flour, does not produce wheat. The majority held that the taxation was valid since the tax applied equally to all States, and there was no constitutional impediment to granting money discriminately. Per Latham CJ, section 96 is a means by which the Commonwealth, "when it thinks proper", can adjust inequalities between States. Thus, because there was no discrimination in taxation, yet grants are not subject to prohibitions based on discrimination, the majority held the laws to be valid.
Evatt J, conversely, examined the scheme as a whole, and ruled it invalid.
Commonwealth Law Reports
The Commonwealth Law Reports are the authorised reports of decisions of the High Court of Australia. The CLR are published by the Lawbook Company, a division of Thomson Reuters...
735 is a High Court of Australia
High Court of Australia
The High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, has the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the States, and...
case that deals with whether section 96
Section 96 of the Australian Constitution
Section 96 of the Constitution of Australia permits that the Australian Parliament is able, subject to the approval of the State concerned, to grant financial assistance to any State on the terms and conditions that it sees fit...
is limited by section 99, which prevents Commonwealth laws discriminating between States.
In this case, the Commonwealth imposed a tax on flour millers, but reimbursed the States based on their production of wheat in order to reimburse the flour millers by 90% of their taxes. The problem is that Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
, while milling flour, does not produce wheat. The majority held that the taxation was valid since the tax applied equally to all States, and there was no constitutional impediment to granting money discriminately. Per Latham CJ, section 96 is a means by which the Commonwealth, "when it thinks proper", can adjust inequalities between States. Thus, because there was no discrimination in taxation, yet grants are not subject to prohibitions based on discrimination, the majority held the laws to be valid.
Evatt J, conversely, examined the scheme as a whole, and ruled it invalid.