Ryde Municipal Council v Macquarie University [1978] HCA 58

High Court of Australia Gibbs A.C.J. Stephen, Jacobs, Murphy and Aickin JJ. Ryde Municipal Council v Macquarie University [1978] HCA 58

ORDER Appeal dismissed with costs.

Cur. adv. vult.

The following written judgments were delivered:—

Dec. 19 Gibbs A.C.J.

The respondent, Macquarie University, obtained from Waddell J. in the Supreme Court of New South Wales a declaration that certain land, which forms part of the land owned by the University and on which the University is situated, is not ratable under the Local Government Act, 1919 N.S.W., as amended ("the Act"). An appeal to the Court of Appeal was dismissed by a majority. The appellant, Ryde Municipal Council, now appeals to this Court by special leave.

The grounds of the University extend over an area of some 336 acres. The land in question, known as the market, is more or less at the centre of that larger area and has a frontage to the north-western corner of the University court of approximately 202 ft. by a depth of about 72 ft. From the time when the University was first planned, it was intended that there should be a section of the University devoted to commercial and shopping facilities, and in order to achieve this object the land was made available to the Macquarie University Union, an association of members of the council, staff, graduates and students of the University. The objects of the Union include the promotion of the welfare of the University and the provision and maintenance for its members of a common meeting ground and social centre and such other facilities as may be necessary to secure the further objects of the Union. A two-level building was constructed on the subject land; this was done by the Union with the authority of the council of the University, and the construction was financed by a loan to the union which the University guaranteed. Thereafter, parts of the building were leased to various tenants. The leases were not put in evidence, but it appears that they were granted by the Union with the approval of the council. In the circumstances, it is not material whether the University itself let the premises or consented to the Union doing so. The tenants carry on business in the leased areas for various commercial purposes—there is a co-operative bookshop, a retail shop, a chemist shop, an office leased to the Australian Union of Students for the purposes of a travel centre, branches of two banks, a handicrafts and gift shop and an area occupied by the University Sports Association which also includes a shop. The shops operate with a view to profit but primarily serve the students and staff of the University. The banks provide a general banking service, and lend money for housing and other purposes. The shops and the banks are open to the general public but it is unlikely that many members of the public patronize them. It is common for universities nowadays to arrange for shopping and commercial facilities to be available within their grounds. The nearest similar facilities outside Macquarie University are about two miles away. The commercial centre in the market building was intended to provide a convenience to staff and students, and to save their time, but it is also a valuable source of income for the Union.