Century 21 Australia Pty Ltd v The State of Victoria

The High Court of Australia considered a dispute between Century 21 Australia Pty Ltd and the State of Victoria concerning the validity of certain provisions within the *Land Tax Act 2005* (Vic). The core of the disagreement revolved around whether these provisions, which imposed land tax on Century 21 based on its ownership of land, were invalid by reason of contravening section 51(xxxi) of the Commonwealth Constitution, which requires the Commonwealth to provide "just terms" for the acquisition of property.

The central legal issue before the High Court was whether the imposition of land tax by the State of Victoria, as applied to Century 21, constituted an acquisition of property for the purposes of section 51(xxxi) of the Constitution. If it did, the further question arose as to whether the *Land Tax Act 2005* (Vic) provided "just terms" for such an acquisition.

Gageler J reasoned that the imposition of a tax, even one that has the effect of diminishing the value of property, does not, in itself, constitute an acquisition of property within the meaning of section 51(xxxi) of the Constitution. His Honour explained that the constitutional provision is concerned with the compulsory acquisition of property by the executive government for a public purpose, not with the exercise of the legislative power to impose taxes. The power to tax is a fundamental power of government, distinct from the power to acquire property. Therefore, the provisions of the *Land Tax Act 2005* (Vic) were not invalid on the grounds alleged.

The High Court dismissed the appeal.