Review of Western Australian State Taxes 1994 - Chapter Four - The Constitutionality of State Petrol Taxes
AbstractThe first part of the Chapter focuses on the legislative schemes of petrol taxation, including the nature of the State's taxation powers, as specified by the Commonwealth Constitution, with specific attention being given to the s. 90 limitation. The primary focus of the Chapter is on Part IIIA of the Transport Co-ordination Act 1966 (WA), which provides the source of most of the State's revenue from petrol. The authors recognise that the primary limitation on the imposition of petrol taxes by the State is s. 90, and discusses the definition of "excise duty" and its application to petrol taxes. The Chapter outlines and assesses the elements of the legislative scheme, as provided by the Act, and includes a discussion of whether or not it is of a regulatory nature. The Chapter concludes that the scheme imposes an excuse duty and is therefore unconstitutional as it violates s. 90. It claims that a wide interpretation of the excise duty power in s. 90 is unjustified, and advocates a change in the law, so as to avoid the scheme being struck down for unconstitutionality. It suggests that there is a strong prima facie case for allowing the States to levy excise duties, and specifies methods by which such power could be granted. It also suggests an interim solution -- that the States should be permitted to impose excise duties, subject to the approval of both Houses of Parliament. |