Stott v. The Commonwealth of Australia & Anor

Catchwords

Constitutional law – inconsistency – acquisition of property on just terms – taxation – international taxation agreements – where Land Tax Act 2005 (Vic) imposes land tax on taxable land payable by owner – where second defendant assessed taxable land under Taxation Administration Act 1997 (Vic) – where State Taxation Acts Amendment Act 2015 (Vic) created higher rate of land tax for “absentee owner” – where plaintiff ordinarily resident in New Zealand and “absentee owner” – where Australia and New Zealand signed Convention for the Avoidance of Double Taxation with respect to Taxes on Income and Fringe Benefits and the Prevention of Fiscal Evasion (“Convention”)  – where Convention given legislative force in International Tax Agreements Act 1953 (Cth) – where art 24(1) of Convention provides nationals of contracting State shall mot be subjected to “any taxation … which is more burdensome than the taxation… to which mational of the other State in the same circumstances, in particular with respect to residence, are or may be subjected” – where plaintiff commenced representative proceedings in Federal Court seeking restitution of difference between absentee owner rate and ordinary rate – where proceedings remain on foot – where on 8 April 2024 Treasury Laws (Amendment Foreign Investment) Act 2024 (Cth) commenced – where on 4 December 2024 ss 42 and 54 of State Taxation Further Amendment Act 2024 (Vic) commenced – whether prior to commencement of Treasury Laws (Amendment Foreign Investment) Act s109 of Constitution invalidates ss 7, 8, 25, 104B and cll 4.1-4.5 of Sch 1 to the Land Tax Act 2005 to extent of inconsistency of art 24(1) of Convention – if so, whether s 5(3) of International Taxation Agreements Act 1953 valid or effective to remove inconsistency – whether s 5(3) invalid on ground law is with respect of acquisiton of property from a person otherwise than on just terms within meaning of s 51(xxxi) Constitution – whether s 106A Land Tax Act 2005 invalid or inoperative on plaintiff by force of art 24(1) and s 109 Constitution