Public Debt of the Commonwealth. On 30th June, 1918, the public debt of the Commonwealth was as follows: : Pre-War and Note Issue Borrowings. PRE-WAR AND NOTE ISSUE BORROWINGS. Commonwealth Government inscribed stock purchased by the Treasurer out of trust funds loans taken over from South Australia Value of properties transferred from the States to the Commonwealth 1,759,003 0 0 11,202,515 00 Since the War the Commonwealth borrowings up to 30th June, OTHER OBLIGATIONS. Accrued Deferred Pay Australian Imperial Force to 30th June, 1918 The leading cases involving interpretation of the Constitution which have been decided by the High Court may for purposes of study and comparison be classified under the following main headings. In the first important group of Constitutional cases which came before the High Court the doctrine of the immunity of Commonwealth Government agencies and instrumentalities, from impairment or interference by the operation of State taxation and other laws, was affirmed. The same doctrine was subsequently applied to recognize the immunity of State Government agencies and instrumentalities from impairment or interference by the operation of Federal laws. In several cases the principle was recognized that the Crown is represented in the States by the State Governors, and in the Commonwealth by the Governor-General. The rule of construction was laid down that the Crown, in its capacity as a Federal Government, is not to be deemed to be intended to be bound by State laws, unless the Crown in that capacity is expressly named in such State laws, and unless such State laws are authorized by the Constitution of the Commonwealth. Commonwealth Agencies and Instrumentalities. D' Emden v. Pedder, (1904) 1 C.L.R., 91.-State revenue duty stamps are not necessary on receipts given by Commonwealth officers for their official salaries; State laws requiring such duty stamps are invalid. The State taxation of Commonwealth instrumentalities is, by necessary implication, forbidden by the Constitution. So held by the High Court. Deakin v. Webb, (1904) 1 V.L.R., 585.-A State cannot impose or enforce the collection of income tax on the salaries of Federal officers earned in the course of their official duties. The principle of D'Emden v. Pedder (supra) re-affirmed. Wollaston's Case, 28 V.L.R., 367, over-ruled. See, however, Webb v. Oultrim, (1907) App. Cas., 81, in which the Privy Council refused to follow the ruling of the High Court. Baxter v. Commissioner of Taxation of N.S. W., (1907) 4 C.L.R., 1087. In an action brought in the District Court of New South Wales by the State Commissioner of Taxation against a Federal officer Baxter to recover State income tax assessed on his Federal salary, the Judge following the decision of the Privy Council in Webb v. Oultrim, (1907) App. Cas., 81, gave a verdict for the plaintiff. Defendant appealed to the High Court which, following its own decision in Deakin v. Webb, 1 C.L.R., 81, held that in the matter as to the limits inter se of the Constitutional powers of the Commonwealth and those of the State, it was not bound to submit itself to the guidance of the Privy Council, except in cases where it had granted a certificate permitting the appeal to the Privy Council from its own decisions. The appeal from the District Court was therefore allowed and judgment was entered for the defendant. An application for a certificate under section 74 of the Constitution permitting appeal to the Privy Council was refused. Flint v. Webb, (1907) 4 C.L.R., 1178.-This was an appeal from the Court of Petty Sessions in Victoria in which a verdict had been given against a Federal officer requiring him to pay income tax on his Federal salary to the State of Victoria. For reasons given in Baxter v. Commissioner of Taxation of N.S.W., the appeal was allowed and the High Court refused to grant a certificate permitting the appeal to the Privy Council. Chaplin v. Commissioner of Taxes of South Australia, (1911) 12 C.L.R., 375.-The Commonwealth Parliament may pass a law making the salaries and allowances of Federal officers, members, and ministers liable to State income taxation. The Commonwealth Salaries Act 1907 is an effective grant to the States of authority to tax such salaries and allowances. Municipal Corporation of Sydney v. The Commonwealth, (1904) 1 C.L.R., 208.-A Municipal Rate Assessment Act must be construed as not applying to land the property of the Commonwealth, which, by section 114 of the Constitution, is not liable to pay rates. Roberts v. Ahern, (1904) 1 C.L.R., 406.-The provision of a State Police Offences Act prohibiting persons from removing offensive matter without a licence will be construed as not intended to be binding on contractors or workers of the Federal Government. The Commonwealth v. The State of New South Wales, (1906) 3 C.L.R., 807. A memorandum of transfer of real estate from a private individual to the Commonwealth is free from State taxation and is therefore entitled to be marked by the State Commissioner of stamp duty as exempt from duty imposed by the Stamp Duties Act; such a transfer is a necessary Federal instrumentality within the rule of D' Emden v. Pedder (supra). Surplus Revenue. The State of New South Wales v. The Commonwealth, (1908) 7 C.L.R., 179.—The Surplus Revenue Act (1908) providing for the appropriation of unspent Federal fourth of revenue at the end of each year and providing that such unspent surplus should not. be paid to the States, held to be valid. The Trade and Commerce. The King v. Sutton, (1908) 5 C.L.R., 789.-The Customs law of the Commonwealth relating to the control, examination and entry of goods imported into the Commonwealth are as binding on State Governments and State officers as on private individuals. Attorney-General of New South Wales v. Collector of Customs, (1908) 5 C.L.R., 818.-A State is bound to pay Customs duties on goods imported by it, even for State use. The levying of duties of Customs on State imports is not the imposition of a tax upon State property within the meaning of section 114 of the Constitution. |