Re: Australian Education Union Ex parte State of Victoria

The High Court of Australia considered an application by the State of Victoria for a writ of prohibition against the Australian Conciliation and Arbitration Commission. The dispute concerned the Commission's jurisdiction to make a certain award in relation to teachers employed by the State of Victoria.

The primary legal issue before the Court was whether the Commission had the constitutional power to make an award binding on the State of Victoria in respect of its public school teachers, given the provisions of section 92 of the Constitution, which guarantees freedom of trade, commerce, and intercourse among the States.

Dawson J reasoned that section 92 of the Constitution, in its application to the States, does not confer upon the Commonwealth Parliament or its agencies, such as the Conciliation and Arbitration Commission, the power to regulate the internal affairs of a State, including the employment of its public servants. His Honour held that the Commission's attempt to make an award binding on the State in this context constituted an unwarranted intrusion into the sovereign powers of the State and was therefore beyond its constitutional authority. The principle applied was that the federal system requires a clear demarcation of powers, and the Commonwealth cannot legislate so as to impair the capacity of a State to function as a State.

The Court made absolute the order nisi for a writ of prohibition.