The Domestic Implementation of Australia’s Tax Treaties: Whatever Happened to the Rule of Law?

Abstract

In a landmark judgment, the High Court of Australia has upheld the constitutional validity of Victoria and Queensland’s foreign land tax surcharges in G Global 120E T2 Pty Ltd v Commissioner of State Revenue (Qld) [2025] HCA 39. The decision clarifies the Commonwealth’s power to give domestic effect to Australia’s tax treaties and to resolve inconsistencies with State tax laws through retroactive legislation. This article argues that the institutional responses to the potential invalidity of foreign surcharges reveal the deep fragility of the rule of law in the domestic implementation of Australia’s tax treaties. It contends that a renewed commitment to rule of law principles is essential to safeguard the legitimacy of Australia’s tax system and ensure certainty for taxpayers.