Gazzo v Comptroller of Stamps (Vic)

The High Court of Australia considered a constitutional challenge brought by Mr. Gazzo against the Comptroller of Stamps (Victoria). The dispute concerned the validity of section 90 of the *Family Law Act 1975* (Cth) in its application to stamp duties levied by the *Stamps Act 1958* (Vic) on transfers of land made pursuant to a Family Court order.

The central legal issue before the High Court was whether the Commonwealth Parliament had the constitutional power to legislate, as it purported to do in section 90 of the *Family Law Act*, to exempt instruments executed for the purposes of maintenance agreements or in accordance with orders under Part VIII of that Act from State duties or charges. Specifically, the Court had to determine if such a law was a valid exercise of the Commonwealth's legislative power under sections 51(xxi) and 51(xxii) of the Constitution, which relate to marriage and divorce respectively.

The High Court held that section 90 of the *Family Law Act 1975* (Cth) was not a valid law of the Commonwealth in its attempted application to stamp duties imposed by Victorian legislation on land transfers made in accordance with a Family Court order. The majority reasoned that while the Commonwealth has power over matrimonial causes, this power does not extend to dictating how States may levy their own revenue-raising taxes on property transactions, even if those transactions are connected to family law proceedings. The Court distinguished between the Commonwealth's power to regulate the substantive aspects of marriage and divorce and its power to interfere with State fiscal powers.

Consequently, the High Court remitted the matter to the Supreme Court of Victoria. No order was made as to costs.