Austin & Anor v The Commonwealth

The applicants, Austin and another, sought to challenge the validity of certain provisions of the *Corporations Act 2001* (Cth) and the *Australian Securities and Investments Commission Act 2001* (Cth). The dispute concerned the constitutional validity of these legislative provisions, which the applicants alleged were beyond the legislative power of the Commonwealth Parliament. The matter came before Hayne J, sitting in chambers.

The central legal issue before the Court was whether the impugned provisions of the *Corporations Act 2001* and the *Australian Securities and Investments Commission Act 2001* were supported by a head of constitutional power. Specifically, the applicants contended that the Commonwealth lacked the constitutional authority to legislate with respect to corporations in the manner undertaken by these Acts.

Hayne J considered the established jurisprudence concerning the Commonwealth's legislative power over corporations, particularly the scope of section 51(xx) of the Constitution, which grants Parliament the power to make laws with respect to "foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth." His Honour's reasoning would have involved an analysis of whether the corporations in question fell within the definition of "trading or financial corporations" and whether the impugned provisions were a valid exercise of the Commonwealth's power in relation to such corporations. The application was ultimately dismissed.