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WITHOUT PREJUDICE
Mr Tony Abbott PM

12-9-2015

C/o josh.frydenberg.mp@aph.gov.au
Cc:

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Bill Shorten Bill.Shorten.MP@aph.gov.au

Senator George Brandis senator.brandis@aph.gov.au
George Williams george.williams@unsw.edu.au
Mr Clive Palmer Admin@PalmerUnited.com
Jacqui Lambie senator.ketter@aph.gov.au
Scott Morrison Scott.Morrison.MP@aph.gov.au
Ref; 20150912-G. H. Schorel-Hlavka O.W.B. to Mr TONY ABBOTT PM
-Press Release-Re s114 of the constitution-and other issues

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Tony,
as a CONSTITUTIONALIST my concern to what appears to me the ATO conduct to
undermine the true meaning and application of the constitution.
.

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I refer to Sydney Municipal Council v Commonwealth [1904] HCA 50; (1904) 1 CLR 208 (26
April 1904), which held that Sydney Municipal Council is in the position of the state when
exercising delegated powers of the state.
http://corpau.blogspot.com.au/2015/09/melton-new-and-illegal-state-within.html

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QUOTE
A transcript of the document is as follows:

FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY
GENERAL DIVISION

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No: (P) VID1167/2010

MELTON SHIRE COUNCIL
Applicant

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COMMISSIONER OF TAXATION
Respondent

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ORDER
JUDGE:
DATE OF ORDER:
WHERE MADE:

Justice Gordon
18 March 2011
Melbourne

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THE COURT ORDERS BY CONSENT THAT:
1.
A declaration that the applicant is a State for the purposes of s 114 of the Commonwealth Constitution.

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2.

A declaration that, by reason of s 5 of the A New System (Goods and Services Tax Imposition-General) Act
1999 (Cth), no tax payable under GST law ( within the meaning of A New System (Goods and Services Tax)
Act 1999) is imposed on the property of any kind belonging to the Applicant.

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Mr G. H. Schorel-Hlavka O.W.B.
INSPECTOR-RIKATI about the BLACK HOLE in the CONSTITUTION-DVD
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3.

The parties bear their own costs of the proceeding.

Date that entry is stamped: 18 March 2011.
Deputy District Registrar.

End of transcript.
END QUOTE

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QUOTE
5 Act does not impose a tax on property of a State

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(1) This Act does not impose a tax on property of any kind belonging to a State.
(2)
Property of any kind belonging to a State has the same meaning as in section 114 of the
Constitution.
END QUOTE

As I understand it Municipal/shire councils are generally corporations which are acting, well
supposed to act, for and on behalf of their citizens (wrongly referred to as ratepayers).
The State Government as I understand it transfer ownership to municipal/shire councils and as
such while municipal/shire councils can exercise State delegated powers it doesnt mean that the
properties are State owned. Municipal/shire councils purchase public property from the State
such as with Banyule City Council purchasing Belfield former secondary school at the cost of the
local residents (referred to as rate payers) and then develop and sell part of it or otherwise turn it
into some money spinning entity. As such where there is a transfer of ownership (Title) of the
property it is owned by the council for and on behalf of citizens (ratepayers) and not a state entity
or state owned property. Therefore, I view that the consent orders between Melton Shire Council
and the ATO are in violation of the constitution and as such null and void.
Commonwealth of Australia Constitution Act 1900 (UK)
QUOTE

(ii) taxation; but so as not to discriminate between States or parts of States;

END QUOTE

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What this means is that the Commonwealth (as the ATO is a mere Department of the
Commonwealth of Australia) cannot exclude a Shire merely because it at times exercises
delegated powers in some matters to then regard its entity as a corporation to be beyond the rule
of law.

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What we have is that the real issue regarding Buloke Shire Council was based upon that it claims
to exercise State delegated powers to enforce fire prevention legislation but then as I made clear,
using photographs to prove it, excludes itself. In my submission Buloke Shire Council cannot
exclude itself from ordinary State legislation merely because it happens to execute or claim to
execute State delegated powers. It cannot place itself above the rule of law.
Likewise, Melton Shire Council may exercise State Delegated powers but then must act
according to requirements ordinary applicable to the State of Victoria. As such, where it
exercises a delated powers to apply a land taxation (Not that I concede this is constitutionally
permissible) then it must hand over all monies to the States Consolidated Revenue Funds as not
to do so would allow the State Ministers or employees, agents, etc, to siphon moneys away from
Consolidated revenue Funds and arrange kickbacks, etc. As such, all and any alleged taxation
collected on behalf of the State by delegated powers must be payable to the State Consolidated
Revenue Funds. Where this is not eventuating then it cannot be deemed a State delegated
taxation powers. The State cannot permit taxation to be used for non-public purposes. It would
defy the legal principles embedded in the constitution.

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INSPECTOR-RIKATI about the BLACK HOLE in the CONSTITUTION-DVD
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The quotation

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Hansard 17-2-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention) (Re Section 96 of the Constitution)
QUOTE Mr. OCONNOR.In this case the Constitution will be above Parliament, and Parliament will have to conform to it. If any
Act were carried giving monetary assistance to any state it would be unconstitutional, and the object
sought would not be attained.
END QUOTE

Is to be understood to refer to prior to the Premiers conference which inserted s96 of the
constitution, and while the Commonwealth can provide financial assistance to the States it can
however not ordinary legislate to do so other than within the provisions of s96.
Hansard 17-2-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention) (Re Section 96 of the Constitution)
QUOTE
Mr. OCONNOR.-It is nicely wrapped up. Any one who reflects upon the conditions which must exist
before this provision can be brought into operation will see that it assumes that the states must be reduced to a
condition of pauperism before they can take advantage of it.

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Sir JOHN FORREST.-What would you do if they were?

Mr. OCONNOR.-I will come to that. Mr. Wise seems to be of opinion that there is some power
implied in the Constitution to give such aid. Now, from the consideration and study which I have been
able to give to the Constitution, I have no hesitation whatever in saying that there is no such power
implied. The Constitution is formed for certain definite purposes. There are definite powers of legislation and
definite powers of administration, and the clause that the Right Hon. Sir John Forrest called attention to
just now-clause 81-expressly provides that the revenues of the Commonwealth shall form one
consolidated fund, to be appropriated for the public services of the Commonwealth in the manner and
subject to the charges provided in this Constitution.
Mr. WISE-The order and good government of the Commonwealth would come under the term "public
services of the Commonwealth."
Mr. OCONNOR.-I do not agree with the honorable member in his interpretation of the powers of the
Commonwealth, especially when dealing with the expenditure of the money of the taxpayers. In such a
case there will be a great deal of care taken to keep the nose of the Federal Parliament to the grindstone in the
matter of this expenditure. I do not think any expenditure will be constitutional which travels outside
these limits. We must remember that in any legislation of the Commonwealth we are dealing with the
Constitution. Our own Parliaments do as they think fit almost within any limits. In this case the Constitution
will be above Parliament, and Parliament will have to conform to it. If any Act were carried giving
monetary assistance to any state it would be unconstitutional, and the object sought would not be
attained. That brings me to the question of whether it is desirable that there should be any such power either
expressed or implied. I have no hesitation in saying that it would be a disastrous thing for the future of the
[start page 1109] Commonwealth if there was any such power given.
END QUOTE
Hansard 17-2-1898 Constitution Convention Debates (Official Record of the Debates of the National
Australasian Convention)
QUOTE
Mr. ISAACS.-You are referring to paragraph (4) of clause 52?
Mr. HOLDER.-Yes.

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Mr. OCONNOR.-But that money could not be spent upon any object the Federal Parliament thought
fit.
Mr. HOLDER.-I want an expression of opinion which shall be authoritative on the point. I see that,
according to the provision I have quoted, there is power given to the Federal Parliament to borrow money on
the credit of the Commonwealth, and I say again that I do not know of any limitation of the expenditure of
that money except the limitation which would be specified in the Loan Act authorizing the borrowing of the
money. Of course, these words cover the raising of the money for the building of railways for instance, and in
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Mr G. H. Schorel-Hlavka O.W.B.
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such a case the limitation would be the terms of the Loan Act. But is there anything anywhere to prevent a
Loan Act being passed by the Federal Parliament authorizing the raising of a certain sum of money, the
proceeds of which loan might be divided according to the terms of the Act among the states according to their
needs, or upon some other principle?

Mr. GLYNN.-The first three lines of clause 52 affect that point.

Mr. ISAACS.-The money must be expended with regard to "the peace, order, and good government
of the Commonwealth," not of the states.
END QUOTE

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Again the legal principles embedded in the constitution and applicable to the States created
subject to this constitution is that therefore moneys cannot be spend on matters not within the
ordinary conduct of the government. Municipal/shire councils are not Government Department
but corporations and while they may exercise delegated powers of the State and so acknowledged
then in issues with the Commonwealth to fall within s114 of the constitution, they are not
sovereign entities as a Government nor are properties owned by the municipal/shire councils to
be considered that of the State. Where it relate to public purposes then for example parks and
gardens if remaining crown land then would fall within s114 but if the parks and gardens are by
Title in the name of a corporation, being its municipal/shire or other form of corporation then
s114 cannot apply. Where the municipal/shire council manage crown land for the State then s114
would obviously apply. As such the criteria would be if the Title deed shows ownership of the
State of Victoria (or other state) or the identity of the municipal/shire council.
In any event, the collection of taxation by delegated powers must be placed into Consolidated
Revenue Funds and only by Appropriation Bills passed by the Parliament may a municipal/shire
council obtain monies for public purposes. As such forget about councillors making overseas
trips for their family and themselves at cost of those charged rates as a State delegated land
taxation!
Regardless of Melton Shire Council and the ATO having by consent orders issued by the Federal
Court of Australia these orders are and remain null and void for so far they are in violation of the
constitution, as a court cannot overrule the constitution, as the consent provides in that regard no
authorisation
http://ag.ca.gov/ethics/accessible/misuse.php
QUOTE (DOWNLOADED 13-3-2010)

Ethics Orientation for State Officials

Misuse of Public Funds

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Public Funds may not be Used for Personal Purposes

The starting point for any analysis concerning the misuse of public funds begins with the principle that public
funds must be expended for an authorized public purpose. An expenditure is made for a public purpose when
its purpose is to benefit the public interest rather than private individuals or private purposes.
Once a public purpose is established, the expenditure must still be authorized. A public official possesses
only those powers that are conferred by law, either expressly or impliedly.
END QUOTE (DOWNLOADED 13-3-2010)

There ought to be deemed no difference to say an ordinary Government Department exercising

State legislative provisions enforcement and that of a municipal/shire council, as both do no
more but exercise it by delegated powers. One would therefore not accept that say the Sheriff
Office were to collect monies and then keep it for himself. As such, delegated taxation powers
can only be deemed to be exercised if the monies collected are those for and on behalf of the
State and are handed over to the State into the Consolidated Revenue Funds.
While much is argued that (what I view an unconstitutional GST) the GST is collected by the
Commonwealth on behalf of the States, the truth is that all taxation by the Commonwealth is
collected for and on behalf of the States. The Commonwealth embodies the States. In essence
Commonwealth territories are therefore held for and on behalf of all the States. It means that in
real legal terms the Commonwealth can raise or lower the GST as it desires and do not need the
approval of the States or any of them. All it needs is the approval of the Parliament by having
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Mr G. H. Schorel-Hlavka O.W.B.
INSPECTOR-RIKATI about the BLACK HOLE in the CONSTITUTION-DVD
A 1st edition limited special numbered book on Data DVD ISBN 978-0-9803712-6-0
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Bills passed and then the Governor-General to provide Royal Assent. Indeed it is absurd that
municipal/shire councils could charge any person GST on items it sells and then keep the GST
for itself!
The truth is that when I was overcharged by a company in GST and contacted the ATO about it
its response was that it keep no records of GST transactions!
What an absurdity that any business or otherwise can charge GST and can keep the monies, even
so it is charges as a tax, and the ATO has no records of this.
In my view the delegated powers of any municipal/shire council can only exist if it acts in
accordance with legal requirement binding State officials and not siphons the monies off for
themselves.
Lets use a real life example as to State versus municipal council ownership.
Banyule City Council had engaged in a project with a private builder to create a $400 million
shopping centre with offices and swimming pool, on the basis it could afford this monstrosity.
Only one objector was recorded, and I was the lone objector upon constitutional grounds. I made
also an objection the Federal Government that it couldnt provide funding for this kind of matter
as the constitution didnt allow for this. With the Commonwealth dropping out not providing its
funding the project went dead, albeit as the public swimming pool already had been demolished a
new $40 million swimming pool was build. And Banyule City Council who had previously
claimed it could afford the $400 million project now had to raise rates (supposed to be state
delegated land taxation powers) as to fund the debt of the $40million. And in recent
advertisement Banyule City Council is now advertising the swimming complex as being the
largest in Northern Victoria, this while it is located as a suburb in Melbourne. What this proved
is that the $40 million complex was not a project for public purposes of local ratepayers but
was a gigantic project for purpose of being a money spinning project for the long term even if it
may never realise this.
The afore mentioned is also relevant where Buloke Shire Council pursues an alleged fine
allegedly to enforce state legislation but desires to make it payable to itself rather than into the
States Consolidated Revenue Funds. In my view the Court could and never should sanction
the gigantic financial rip off in such a manner.
Again, the States are created within s106 of the Commonwealth of Australia Constitution Act
1900 (UK) subject to this constitution which requires that monies are drawn only from
Consolidated Revenue Funds by way of Appropriation Bills passed by the Parliament, and hence
this embedded legal principle also applies to the States.
I may also add that the Commonwealth and neither the States can tax the courts because they are
a sovereign powers upon themselves, because of the separation of powers. There is a lot more to
it all as I canvassed in the past in my published books in the INSPECTOR-RIKATI series (
on certain constitutional and other legal issues) but I do not contemplate to fill pages with this as
already this
I look forwards to your positive reply!

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This document is not intended and neither must be perceived to refer to all details/issues.

MAY JUSTICE ALWAYS PREVAIL

Our name is our motto!)

(
Awaiting your response,

G. H. Schorel-Hlavka O. W. B. (Friends call me Gerrit)

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Mr G. H. Schorel-Hlavka O.W.B.
INSPECTOR-RIKATI about the BLACK HOLE in the CONSTITUTION-DVD
A 1st edition limited special numbered book on Data DVD ISBN 978-0-9803712-6-0
PLEASE NOTE: You may order books in the INSPECTOR-RIKATI series by E-mail admin@inspectorrikati.com See also www.schorel-hlavka.com at blog Http://www.scribd.com/InspectorRikati