South Australia v Commonwealth

South Australia v Commonwealth
Court	High Court of Australia
Full case name	The State of South Australia v The Commonwealth; The State of Victoria v The Commonwealth; The State of Queensland v The Commonwealth; The State of Western Australia v The Commonwealth
Decided	23 July 1942
Citations	[1942] HCA 14, (1942) 65 CLR 373
Court membership
Judges sitting	Latham CJ, Rich, Starke, McTiernan and Williams JJ
Case opinions
(5:0) The Income Tax Act 1942 was valid under the taxation power. (4:1) The State Grants Act 1942 was valid under the section 96 grants power. (per Latham CJ, Rich, McTiernan & Williams JJ. Starke J dissenting. (5:0) Section 221 of the Income Tax Assessment Act 1942 was valid. (3:2) The Income Tax (Wartime Arrangements) Act 1942 was valid under the defence power. Rich, McTiernan & Williams JJ. Latham CJ & Starke J dissenting.
Laws applied
Overruled by
Victoria v Commonwealth (Second Uniform Tax case)

South Australia v Commonwealth ("the First Uniform Tax case")^[1] is a decision of the High Court of Australia that established the Commonwealth government's ability to impose a scheme of uniform income tax across the country and displace the State. It was a major contributor to Australia's vertical fiscal imbalance in the spending requirements and taxing abilities of the various levels of government, and was thus a watershed moment in the development of federalism in Australia.