Associated Newsagents Co-operative Ltd v Commissioner of Taxation (Cth)

High Court of Australia Full Court Barwick, CJ Kitto, Menzies, Owen and Walsh, JJ Associated Newsagents Co-operative Ltd v Commissioner of Taxation (Cth)

ORDER Order Question in the stated case answered in the negative. Appellant to pay respondents costs of the case stated. Barwick, CJ

In this matter I have had the advantage of reading the reasons for judgment prepared by my brother Owen. I agree with him that the appellant is neither a trade union within the meaning of s 23(f) of the Income Tax and Social Services Contribution Assessment Act 1936-1964 (Cth) nor an "association of employers" within the meaning of that section. The appellant, in my opinion, is an association of newsagents and not an association of employers. The basis of their association is not that they are employers: it is that they are newsagents.

The question asked in the stated case should be answered in the negative.

Kitto, J

I have had an opportunity of reading the judgment of Owen, J. I agree in it and have nothing to add.

Menzies, J

I agree with the reasons for judgment of Owen, J.

Owen, J

Section 23(f) of the Income Tax and Social Services Contribution Assessment Act 1936-1964 exempts from tax "the income of a trade union and the income of an association of employers or employees registered under any Act or State Act … relating to the settlement of industrial disputes".

In respect of portion of its income derived during the year ended 30 June 1965 the appellant claims to be entitled to the benefit of that provision as being either "a trade union" or "an association of employers". I say portion of its income because, during the year in question, it claimed and was given the benefit for taxation purposes of the provisions of Part III, Division 9, of the Act which deal with co-operative societies.