High Court of Australia
The High Court of Australia is Australia's apex court. It exercises original and appellate jurisdiction on matters specified within Australia's Constitution.
The High Court was established following passage of the '' Judiciary Act 1903''. ...
Australian Constitution
The Constitution of Australia (or Australian Constitution) is a constitutional document that is supreme law in Australia. It establishes Australia as a federation under a constitutional monarchy and outlines the structure and powers of the A ...
, which prohibits States from levying
excise
file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...
.
Background
Bartley was a
brewer
Brewing is the production of beer by steeping a starch source (commonly cereal grains, the most popular of which is barley) in water and fermenting the resulting sweet liquid with yeast. It may be done in a brewery by a commercial brewer ...
of
beer
Beer is one of the oldest and the most widely consumed type of alcoholic drink in the world, and the third most popular drink overall after water and tea. It is produced by the brewing and fermentation of starches, mainly derived from ce ...
at
Cootamundra
Cootamundra, nicknamed Coota, is a town in the South West Slopes region of New South Wales, Australia and within the Riverina. It is within the Cootamundra-Gundagai Regional Council. At the 2016 Census, Cootamundra had a population of 6,782. I ...
in the
state
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
of
New South Wales
)
, nickname =
, image_map = New South Wales in Australia.svg
, map_caption = Location of New South Wales in AustraliaCoordinates:
, subdivision_type = Country
, subdivision_name = Australia
, established_title = Before federation
, es ...
. He had a
licence
A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit).
A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...
under the
Commonwealth
A commonwealth is a traditional English term for a political community founded for the common good. Historically, it has been synonymous with "republic". The noun "commonwealth", meaning "public welfare, general good or advantage", dates from the ...
''Beer Excise Act'' 1901 however he didn't have a licence under the NSW ''Liquor Act 1898''.
Sergeant
Sergeant ( abbreviated to Sgt. and capitalized when used as a named person's title) is a rank in many uniformed organizations, principally military and policing forces. The alternative spelling, ''serjeant'', is used in The Rifles and other ...
Peterswald was a
police officer
A police officer (also called a policeman and, less commonly, a policewoman) is a warranted law employee of a police force. In most countries, "police officer" is a generic term not specifying a particular rank. In some, the use of the ...
and District Licensing Inspector and he charged Bartley with carrying on the trade or business of a brewer without holding a licence under the NSW Act and the issue concerned the payment of a licence fee. The Police Magistrate upheld Bartley's contention that the licence fee was an excise duty and that the effect of section 90 of the
Australian Constitution
The Constitution of Australia (or Australian Constitution) is a constitutional document that is supreme law in Australia. It establishes Australia as a federation under a constitutional monarchy and outlines the structure and powers of the A ...
was that the state Act ceased to have effect once the Commonwealth imposed uniform customs duties. Peterswald appealed to the
Supreme Court of NSW
The Supreme Court of New South Wales is the highest state court of the Australian State of New South Wales. It has unlimited jurisdiction within the state in civil matters, and hears the most serious criminal matters. Whilst the Supreme Court ...
Bernhard Wise
Bernhard Ringrose Wise (10 February 1858 – 19 September 1916), commonly referred to as B. R. Wise, was an Australian politician. He was a social reformer, seen by some as a traitor to his class, but who was not fully accepted by the labor Mov ...
. The Supreme Court, by a
majority
A majority, also called a simple majority or absolute majority to distinguish it from related terms, is more than half of the total.Dictionary definitions of ''majority'' aMerriam-WebsterDarleyCJ and Owen J, dismissed the appeal. Pring J dissented..
Decision
GriffithCJ delivered the judgement of the court, noting that "the Constitution was framed in Australia by Australians, and for the use of the Australian people", and holding that an excise is a customs duty imposed on goods either in relation to quantity or value when produced or manufactured and not in the sense of a direct or personal tax. His Honour outlined four elements of an excise:
* The goods must be locally produced within the State.
* The tax must be imposed at the point of production or manufacture.
* The tax must be imposed in proportion to the quantity or value of the goods in question.
* It must be an indirect tax that gets passed on to the consumer through a higher price of goods.
The Court held that the amount of the NSW licence fee did not depend on the quantity of beer manufactured and was a direct tax on manufacture. The licence fee was therefore not an excise and the brewer was required to hold a licence under the NSW Act as well as the Commonwealth Act.
His Honour's requirement that the tax be imposed at the point of production or manufacture forms what is known as the narrow approach to section 90. The narrow approach was rejected by the High Court in ''
Ha v New South Wales
''Ha v New South Wales''. is a High Court of Australia case that dealt with section 90 of the Australian Constitution, which prohibits States from levying excise.
Facts
The plaintiffs were charged under the ''Business Franchise Licences (Tob ...
''..
See also
*
Australian constitutional law
Australian constitutional law is the area of the law of Australia relating to the interpretation and application of the Constitution of Australia. Several major doctrines of Australian constitutional law have developed.
Background
Constitution ...
* '' Brown v. Maryland'' - decision of the U.S. Supreme Court on meaning of "imposts or duties on imports or exports" in a clause similar to Section 90, which was analyzed by the court in ''Peterswald''