Tabcorp Holdings Limited v State of Victoria

The High Court of Australia considered a dispute between Tabcorp Holdings Limited and the State of Victoria concerning the interpretation of a legislative provision regarding the payment of a levy by Tabcorp to the State. The core of the disagreement lay in whether Tabcorp was entitled to deduct certain amounts from the levy payable under the *Gambling Regulation Act 2003* (Vic).

The central legal issue before the High Court was whether Tabcorp was entitled to deduct from the Victorian Government's share of wagering revenue, under section 3.4.2(2) of the *Gambling Regulation Act 2003* (Vic), the amount of the Commonwealth Government's Goods and Services Tax (GST) paid by Tabcorp on its wagering and betting operations.

The High Court, by majority, held that the deduction for GST was not permissible. The Court reasoned that the legislative scheme contemplated a division of revenue between Tabcorp and the State, and that the GST was a tax imposed by the Commonwealth on Tabcorp's turnover, not a cost or expense that diminished the wagering revenue itself in the context of the State's entitlement. The principles applied focused on the plain meaning of the statutory language and the intention of Parliament in establishing the levy and its distribution. The Court found that the wording of section 3.4.2(2) did not extend to allowing a deduction for a Commonwealth tax.

The High Court dismissed Tabcorp's appeal, affirming the decision of the Victorian Court of Appeal.