State of New South Wales & Ors v Commonwealth of Australia

The High Court of Australia considered a dispute between the State of New South Wales and other States (the applicants) and the Commonwealth of Australia (the respondent). The applicants sought declarations that certain provisions of the *Native Title Act 1993* (Cth) were invalid.

The central legal issue before the Court was whether the *Native Title Act 1993* (Cth), in its application to the extinguishment of native title by the grant of certain interests in Crown land, was constitutionally valid. Specifically, the Court had to determine if the Act, by requiring compensation for the extinguishment of native title to be determined by a particular method, impermissibly infringed upon the States' legislative powers or the Commonwealth's constitutional obligations.

Gleeson CJ, in his reasons, focused on the interpretation of section 51(xxxi) of the *Commonwealth Constitution*, which requires that any acquisition of property by the Commonwealth must be on just terms. His Honour found that the *Native Title Act 1993* (Cth) did not involve an acquisition of property by the Commonwealth in the relevant sense. Instead, the Act regulated the extinguishment of native title by the States and prescribed the terms upon which such extinguishment could occur, including the provision of compensation. The Court reasoned that the Commonwealth Parliament had the power to legislate with respect to native title, and that the provisions concerning compensation were a valid exercise of that power, not an unconstitutional imposition on the States.

The application was dismissed.