The Chief Justice (Sir SAMUEL GRIFFITH), delivering the judg ment of himself and Justices BARTON and O'CONNOR, said: 6 The words States or parts of States must be read as synonymous with parts of the Commonwealth' or different localities within the Commonwealth.' The existing limits of the States are arbitrary, and it would be a strange thing if the Commonwealth Parliament could discriminate in a taxing Act between one locality and another, merely because such localities were not co-terminous with States or with parts of the same State.": 6 C.L.R., at p. 38. After referring to the four categories of conditions as to remuneration of labour which would exempt goods from taxation under the Act, the judgments continues:-" It is abundantly clear from these provisions that the Legislature not only purported to authorize the prescribing of conditions according to the circumstances of locality, but intended, and indeed prescribed, that discrimination according to locality might be made. Any other rule would be manifestly unjust. Yet this is the very thing which, so far as regards liability to taxation, is prohibited by the words under consideration. It was suggested that, though the Act thus authorizes discrimination between States and parts of States, it does not itself discriminate, since, it is said, the conditions actually prescribed by any or all of the specified authorities might in fact be identical throughout the Commonwealth. The Legislature may in some cases delegate the power of fixing the incidence of taxation: Powell v. Apollo Candle Co., 10 A.C., 282, but it would be a strange thing to hold that, while it cannot itself discriminate between localities, it can, by delegation, confer power to make such discrimination": 6 C.L.R., at p. 80. Mr. Justice ISAACS and Mr. Justice HIGGINS, dissenting, held that the Act did not authorize discrimination. Mr. Justice ISAACS suggested that where an Act discriminated between States or parts of States, it ought to be possible to point out the States or localities which it favoured. Mr. Justice HIGGINS considered that even if the Act did authorize discrimination, that would not invalidate the Act, since the discrimination was not a necessary result of the Act; though it might invalidate a discriminating order or award made under the Act: 6 C.L.R., at pp. 105-109, 130-132. The decision in this case does not cast any doubt on the power of the Commonwealth Court of Conciliation and Arbitration to make an award in settling a two State industrial dispute providing for different rates of wages in different localities, varying according to the different conditions of life and labour and the cost of living : Federated Saw Mills Employees v. James Moore & Sons Ltd., (1909) 8 C.L.R., 465. Discrimination in United States. In Knowlton v. Moore, (1900) 178 U.S., 41, it was argued that an Act of Congress imposing succession duties was unconstitutional as not being uniform throughout the United States," because it exempted bequests or shares below a certain value, because the rate of tax varied according to the relationship or non-relationship of the taker to the deceased, and because the rate of tax progressed with the amount of the interest taken. The Court held, however, that the constitutional provision related to purely geographical uniformity, and did not forbid progressive taxation, classification, or exemptions: 178 U.S., at pp. 83-110). See also Hanover National Bank v. Moyses, (1902) 186 U.S., 181. 51. (iii.) Bounties50 on the production or export of goods, but so that such bounties shall be uniform51 throughout the Commonwealth; § 50. "BOUNTIES." LEGISLATION. BOUNTIES ACT 1907. This was an Act to provide for the payment of bounties on the production of certain goods described in the first schedule as follows: Every grower or producer claiming bounty under the Act is required to prove to the satisfaction of the Minister that he has paid the minimum rate of wages prevailing in the place or district in which the goods are grown or produced. The sum of £339,000 was appropriated under this Act payable by instalments as prescribed in the schedule extending over a period of 15 years. MANUFACTURERS ENCOURAGEMENT ACT 1908. By this Act the sum of £180,000 was appropriated for the purpose of bounties on the production of the following goods : Description of Goods. Pig iron made from Australian ore Puddled bar iron made from Australian pig iron Galvanized sheet or plate iron or steel made from Australian ore Wire netting, not being prison made and being made from Australian ore or from wire manufactured in the United Kingdom. Wire made from Australian ore Iron and steel tubes or pipes (except rivetted or cast), not more than six inches internal diameter, made from Australian pig iron or steel Rate of Bounty. 12s per ton 12s. per ton 12s. per ton 10% on value 10% on values 10% on value. SHALE OILS BOUNTIES ACT 1910. By this Act there was appropriated the sum of £50,000 payable as bounties during a period of three years on the production of the following goods : Description of Goods. Kerosene, the product of shale, having a flashing point of not lower than 73 degrees Fahrenheit, as determined by the "Abel Pensky" test apparatus in manner prescribed Refined Paraffin Wax Rate of Bounty. 2d. per gallon 2/6 per cwt. SHALE OIL BOUNTY ACT 1917. There was, by this Act, made payable during the period of four years commencing the 1st September, 1917, as bounties for production in Australia of crude shale oil from mined kerosene shale, the sum of £270,000. The total amount of the bounty authorized to be paid in one year may not exceed the sum of £67,500. The rate of bounty payable in each year to each producer is 24d. on each gallon produced up to 3,500,000 gallons, with a reduced rate for larger quantities. SUGAR BOUNTY ACTS 1903-1913. The Sugar Bounty Act 1903 provided (in lieu of the rebate under the Excise Tariff 1902) for payment of a bounty until the end of the year 1906, to every grower of sugar cane or beet in the production of which white labour only had been employed. The Sugar Bounty Act 1905 increased the rate of the bounty as follows viz. :-6- per ton on sugar-cane giving 10% of sugar and on beet 60/- per ton on the actual sugar yielding contents of beet. The Act also extended the term of the operation of the bounty until the end of the year 1912, with successive reductions of one-third of the rate during the last two years of the term. The limitation as to time, and the provision for reduction, were repealed by the Sugar Bounty Act 1910. The Sugar Bounty Abolition Act 1912 (proclaimed to commence on 26th July, 1913) repealed the Sugar Bounty Acts-the excise duty on sugar being simultaneously abolished. A subsequent adjustment in connection with the termination of the bounty and excise was effected by the Sugar Bounty Act 1913 and the Excise Tariff 1913. SUGAR BOUNTY ACT 1913. In order to meet the cases of producers of white-grown cane or beet who had not delivered their raw material for manufacture between 1st May and 26th July 1913 (date of proclamation of repeal of the Sugar Bounty Act) an Act was passed on the 30th October, 1913, extending the time within which such cane or beet could be delivered for manufacture and thus be entitled to bounty. WOOD PULP AND ROCK PHOSPHATE BOUNTIES ACT 1912. There shall be payable during the period of five years from 1st January, 1913, as bounties or rewards for the manufacture or production in Australia of wood pulp and rock phosphate, the sum of £75,000 subject to the conditions prescribed. The bonus for wood pulp was 15% of its market value, and of rock phosphate 10% of its market value. The maximum amount which might be paid in any one year was fixed at £5,000. The payment of bounties on rock phosphate was afterwards extended for a period of 10 years APPLE BOUNTY ACT 1918. This Act passed in June 1918, appropriated the sum of £12,000 to be distributed in bounties on export from Australia of evaporated apples, and sold to the British Government for delivery between the 1st April and 31st August 1918. The amount of the bounty in each case was to be 10 % of the value of the evaporated apples the value being taken at not exceeding 7d. per lb. IRON AND STEEL BOUNTY 1918. This was an Act to provide for the payment of bounty on the manufacture, in Australia of black steel sheets and galvanized sheets. The Governor-General may authorize payment of bounties of these products according to the rates set out in the schedule, viz. : Black steel sheets, £1/10/- per ton, galvanized sheets, 10 per ton, varying according to the freight on imports. The total amount of bounty authorized is not to exceed £200,000, payable by annual instalments, not exceeding the sum of £40,000. If the net profits of any person, firm or company, claiming bounty under the Act exceeds in any year 15 % on the capital employed in the business, the Minister may withhold so much of the bounty payable as will reduce the net profits for that year to 15% on the capital employed in the business. The Minister may make application to the Presi |