Tabcorp Holdings Limited v State of Victoria; State of Victoria v Tatts Group Limited

The High Court of Australia heard appeals in *Tabcorp Holdings Limited v State of Victoria* and *State of Victoria v Tatts Group Limited*. The central dispute concerned the interpretation of a legislative provision, section 104(1) of the *Gambling Regulation Act 2003* (Vic), which imposed a tax on the turnover of wagering and betting operations. Tabcorp and Tatts argued that the tax, as applied to their interstate operations, was invalid as it contravened section 92 of the Australian Constitution, which guarantees freedom of interstate trade, commerce, and intercourse. The State of Victoria contended that the tax was a valid exercise of its legislative power.

The High Court was required to determine whether section 104(1) of the *Gambling Regulation Act 2003* (Vic), by imposing a tax on the turnover of wagering and betting operations conducted by Tabcorp and Tatts, imposed a burden on interstate trade and commerce that was discriminatory or protective in nature, thereby contravening section 92 of the Constitution. Specifically, the Court had to consider whether the tax, in its operation and effect, discriminated against interstate commerce or favoured intrastate commerce.

The Court reasoned that section 92 of the Constitution requires that interstate commerce be free from discriminatory burdens. It found that the tax, by applying to the turnover of wagering and betting operations regardless of whether they were conducted within or outside Victoria, did not discriminate against interstate commerce. The tax was a general impost on turnover, and while it affected interstate operations, it did so in a manner that was not protectionist or discriminatory. The Court applied the principles established in cases concerning the interpretation of section 92, focusing on whether the law in its operation and effect imposed a burden on interstate trade that was greater than, or different in kind from, the burden imposed on intrastate trade.

The appeals were dismissed.