Certain property in Queen Street, Brisbane, was purchased by the Commonwealth Bank as bank premises.

The necessary transfer was prepared, and upon lodging the transfer for registration the Chief Commissioner of Stamps, Brisbane, claimed payment of stamp duty on the transfer.

The Treasurer desires to be advised whether the Commonwealth Bank is liable and should pay the duty claimed.

In an opinion dated 27 November 1912⁽¹⁾, dealing with the question of stamp duties, I advised that, in my opinion, the Commonwealth Bank was an instrumentality of the Commonwealth.

The Bank being an instrumentality of the Commonwealth, it is not subject in the exercise of its ordinary functions or in carrying out the purposes for which it was created, to any law of a State which would fetter the free exercise of these functions or purposes.

The acquisition of land and buildings for bank premises and the transfer of the land and buildings to the Bank are necessary for effectually carrying out the purposes for which the Bank was created, and the imposition of stamp duty under State law on the transfer of the land to the Bank is, in my opinion, a fetter on the free exercise of the functions and powers of the Bank.

In my opinion, the Commonwealth Bank is not liable for stamp duty in respect of the transfer of the Queen Street property, Brisbane.

[Vol. 11, p. 170]

(1)Openion No. 478.

(2)This Opinion is unsigned in the Opinion Book, but it is attributed to Mr Hughes.

* See also Opinions No.508.