Treasurer of Victoria v Tabcorp Holdings Ltd

The case of Treasurer of Victoria v Tabcorp Holdings Ltd involved a dispute over the calculation of a state levy on gaming operators. The matter was heard and determined by the Supreme Court of Victoria. The primary issue before the Court was whether the Treasurer of Victoria was bound by statute to apply an arithmetical formula to determine the amount of levy payable by each gaming operator or if the Treasurer had discretion to adjust the levy based on the cessation of gaming operations during the financial year. The dispute centred on the interpretation of the relevant statutory language, specifically section 3.6.3A of the Gambling Regulation Act 2003 (Vic).

The Court was required to ascertain the legislative intention behind the statutory language and whether the ordinary and natural meaning of the words produced arbitrary or unfair results. The Court considered whether there was any alternative construction open that would avoid such results and whether the statutory language was unambiguously clear, indicating no intention to confer discretion on the Treasurer. The Court found that the statutory language unambiguously indicated that the levy was to be calculated in accordance with the specified arithmetical formula, and no discretion was conferred to the Treasurer to adjust the levy based on the cessation of gaming operations.

The Court held that the statutory language was clear and unambiguous, leaving no room for the exercise of discretion by the Treasurer. The Court emphasised the primacy of the statutory text and the ordinary and natural meaning of the words used. The Court further held that any exercise of discretion by the Treasurer would have operated arbitrarily and would not align with the statutory language. Consequently, the Court found that the Treasurer was bound to apply the arithmetical formula as set out in the statute and that the levy was payable in full, irrespective of any cessation of gaming operations during the financial year. The appeals brought by the gaming operators were therefore allowed.

In light of the above, the Court ordered that the levy payable by the gaming operators be calculated in accordance with the specified arithmetical formula, without any adjustments for the cessation of gaming operations during the financial year. The Court's decision underscored the importance of adhering to the statutory language and the legislative intention when interpreting and applying tax laws.