Matthews v Chicory Marketing Board (Vic)
Encyclopedia
Matthews v Chicory Marketing Board (Vic) (1938) 60 CLR
263 is a High Court of Australia
case that considered section 90 of the Australian Constitution
, which prohibits States from levying excise
(taxes). Although the meaning of excise was considered in Peterswald v Bartley
, this case significantly broadened its reach.
In this case, the law in question was a Victorian
tax on producers of chicory
, which was measured at the rate of one pound
per half-acre, of land planted with the crop. The minority in this case, consisting of Latham CJ and McTiernan J, followed the Peterswald definition and held that an excise must have some relation to the quantity or value of the goods.
On the contrary, the majority, whose principal judgment was delivered by Dixon J, allowed this extension. After examining the history of excise in England
, his Honour concluded that the definition in Peterswald may be too narrow. All that is required is that the "tax must bear a close relation to the production or manufacture, the sale or the consumption of goods and must be of such a nature as to affect them as the subjects of manufacture or production or as articles of commerce". Hence, although the tax in this case did not directly refer to the quantity or value of the chicory
produced, the land area has a "natural, although not a necessary" relation to the quantity produced, and it is a "controlling element". This was formulated with reference to the framer
s of the Constitution, who adopted an excise as "a tax directly affecting commodities".
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...
263 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 considered section 90 of the Australian Constitution
Constitution of Australia
The Constitution of Australia is the supreme law under which the Australian Commonwealth Government operates. It consists of several documents. The most important is the Constitution of the Commonwealth of Australia...
, which prohibits States from levying excise
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
(taxes). Although the meaning of excise was considered in Peterswald v Bartley
Peterswald v Bartley
Peterswald v Bartley 1 CLR 497 is an early High Court of Australia case that dealt with section 90 of the Australian Constitution, which prohibits States from levying excise....
, this case significantly broadened its reach.
In this case, the law in question was a Victorian
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
tax on producers of chicory
Chicory
Common chicory, Cichorium intybus, is a somewhat woody, perennial herbaceous plant usually with bright blue flowers, rarely white or pink. Various varieties are cultivated for salad leaves, chicons , or for roots , which are baked, ground, and used as a coffee substitute and additive. It is also...
, which was measured at the rate of one pound
Australian pound
The pound was the currency of Australia from 1910 until 13 February 1966, when it was replaced by the Australian dollar. It was subdivided into 20 shillings, each of 12 pence.- Earlier Australian currencies :...
per half-acre, of land planted with the crop. The minority in this case, consisting of Latham CJ and McTiernan J, followed the Peterswald definition and held that an excise must have some relation to the quantity or value of the goods.
On the contrary, the majority, whose principal judgment was delivered by Dixon J, allowed this extension. After examining the history of excise in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, his Honour concluded that the definition in Peterswald may be too narrow. All that is required is that the "tax must bear a close relation to the production or manufacture, the sale or the consumption of goods and must be of such a nature as to affect them as the subjects of manufacture or production or as articles of commerce". Hence, although the tax in this case did not directly refer to the quantity or value of the chicory
Chicory
Common chicory, Cichorium intybus, is a somewhat woody, perennial herbaceous plant usually with bright blue flowers, rarely white or pink. Various varieties are cultivated for salad leaves, chicons , or for roots , which are baked, ground, and used as a coffee substitute and additive. It is also...
produced, the land area has a "natural, although not a necessary" relation to the quantity produced, and it is a "controlling element". This was formulated with reference to the framer
Framer
A framer is a carpenter who assembles the major structural elements of a wood-framed building. Framers build walls out of studs, sills, and headers; build floors from joists and beams; and frame roofs using ridge poles and rafters....
s of the Constitution, who adopted an excise as "a tax directly affecting commodities".