PM Transcripts

Transcripts from the Prime Ministers of Australia

Gorton, John

Period of Service: 10/01/1968 - 10/03/1971
Release Date:
28/09/1969
Release Type:
Media Release
Transcript ID:
2119
Document:
00002119.pdf 3 Page(s)
Released by:
  • Gorton, John Grey
FOR PRESS: PM. NO. 74/1969 - HIGH COURT JUDGEMENT ON STAMP DUTY - EXCHANGE OF CORRESPONDENCE BETWEEN THE PRIME MINISTER AND SIR HENRY BOLTZ

FOR PR SSS: PM. NO. 74/ 1969
HIGH COURT JUDGMENT ON STAMP DUTY
EXCHANG3 OF CORR ESPONDENC3 BETWEEN PRIME MINISTSR
AND SIR HSNRY BOLTS
Following are texts of the letters exchanged between the P ime Minister, Mr.
John Gorton, and the Premier of Victoria, Sir Henry Bolte, in regard to the High
Court judgment on stamp duty: 2R September, 1969
" The Righ: Honourable John G. Gorton, M. P.,
Prime Minister of the Commonwealth.
Dear Mr. Gorton,
I %; riteto you on behalf of all the State Premiers, who have met
together in Melbourne today to consider the implications of the recent
High Court decision inThe Stat? of NWestern Australia v Hamersley
Iron Pty. Ltd.
W'e have had the benefit of a careful consideration of the judgments
and their implications by our Solicitors-General and Under ' Treasurers
and their advice to us in the light of that considration.
This advice confirms our fears that the terms of the judgments are
such that, if the d-. cision prevails, the lhgislation in all S ates in
relation to stamp duty on receipts must be considered to be beyond
State legislative pov; er, at least in respect of the r eceipt of money for
the sale of goods, In practical terms this places at immediate risk
revenue amounting to some 7C to 73 million dollars in a full year for all
States, and this is at a time when all States are already experiencing
acute budgetary problems.
The S: ate of West-rn Australia is making application to the High
Court of Australia for a certificate granting leave to appeal to the Privy
Council in the I-IHamersley case. It is expected that this application
will be heard in Melbourne on Octo'ver 7th, 19.9, or soon aftervwards. / 2

2.
The States will all seek to appear on the application to intimate to
the High Court that their support Westem Australia and that, if a
certificate is granted, they will seek leave to intervene in the Privy
Council hearing.
On behalf of all the Premiers I now ask that you should, on behalf
of your Government, authorise the Solicitor-General for WVestern
Australia to intimate to the High Court that the Commonwealth also
supports the application of WVestern Australia.
We have discussed the matter of subsequent action which may be
n'cessary but it "' ould be premature to raise this V: ith you until the
outcome of th application is known. Hovfev r, the Premiers " werc
gratified to know that you v. ould b? pr-parc-i to me-t them at short
notice to discuss the situation.
The immediate problem hovwever is the application to the High Court
and I '' ould be glad to have your decision on the request v'e have put in
the previous paragraph as a matter of urgency. Yours sincerely,
HENRY BOLrE,
Premier and Treasurer.
29th Sptember, 1969
" Dear Sir Henry,
I refer to your letter of 28th September, written on behalf of all the
State Premiers, about the recent High Court decision in the State of
Western Australia v Harmersley Iron Pty. Ltd. The view taken by the
Commonwealth Government in this matter is:-
1. The Commonwealth has abolished appeals from the
High Court to the Privy Council in all Federal matters
except '" inter se" cases.
2. It is therefore still legally possible for the H.. gh Court
to allov, appeal to the Privy Council in " inter se" matters
if it so desires. And the r.: lcent jud'ment of the High
Court in the Stamp Duty case is an " inter se" matter. / 3

The judgment raises questions of great importance to
the States, and to their Budgets and capacity to raise
taxation. For that reason it also raises matters of great
importance to the Commonwealth.
4. The Commonwealth believes the question should be
settled as quickly as possible so that the Stat. es may
know exactly where they stand and so that discussions
betvween the Commonwealth and the S: ates v'hich will
be necessary if the High Court's judgment prevails
may begin as soon as possible.
Every S. ate Government is seeking leave to appeal, under
the provisions of Section 74 of the Constitution and
because of this, and because of the importance of this
matter to all State Governments and th-Commonwealth,
we agree that it is proper for th.: States to make the
application and wvill a" ait the outcome : ith great
interest. Yours sincerely,
J. G. GORTON
The Hon. Sir Henry Bolte, M. L. A.,
Premier of Victoria.
M LBOURN VIC. O0(' 0
CANBERRA, 29 September 1969

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