D APPLICABLE PRINCIPLES
15 Where a law of a State or Territory is inconsistent with a law of the Commonwealth, s 109 of the Constitution provides that the Commonwealth law shall prevail and the State or Territory law will be invalid and inoperative to the extent of the inconsistency: Work Health Authority v Outback Ballooning Pty Ltd [2019] HCA 2; (2019) 266 CLR 428 (at 446 [30] per Kiefel CJ, Bell, Keane, Nettle and Gordon JJ).
16 Two aspects of inconsistency are conventionally referred to: "direct inconsistency" and "indirect inconsistency": Victoria v The Commonwealth (1937) 58 CLR 618 (at 630 per Dixon J); Telstra Corporation Ltd v Worthing [1999] HCA 12; (1999) 197 CLR 61 (at 76-77 [28] per Gleeson CJ, Gaudron, McHugh, Gummow, Kirby, Hayne and Callinan JJ). Ultimately, however, both are directed towards the same question: whether there is a "real conflict" between a Commonwealth law and State or Territory law: Jemena Asset Management (3) Pty Ltd v Coinvest Ltd [2011] HCA 33; (2011) 244 CLR 508 (at 525 [42] per French CJ, Gummow, Heydon, Crennan, Kiefel and Bell JJ). It is not enough for a State or Territory law to be capable of applying to the same factual circumstances to which the Commonwealth law applies: Ex Parte McLean (1930) 43 CLR 472 (at 485 per Dixon J); McWaters v Day (1989) 168 CLR 289 (at 296 per Mason CJ, Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ). A "real conflict" requires something more.
17 Where a court is concerned with direct inconsistency, the question to be answered is whether the State or Territory law would "alter, impair or detract from" the legal or practical operation of the Commonwealth law: Outback Ballooning (at 447 [32] per Kiefel CJ, Bell, Keane, Nettle and Gordon JJ; 456 [65], 458-459 [70] per Gageler J); Jemena Asset Management (at 524-525 [39]-[41] per French CJ, Gummow, Heydon, Crennan, Kiefel and Bell JJ). Put another way, a State or Territory law is inconsistent with a Commonwealth law if its operation and effect would undermine that of the Commonwealth law: Outback Ballooning (at 447 [32] per Kiefel CJ, Bell, Keane, Nettle and Gordon JJ); Jemena Asset Management (at 525 [41] per French CJ, Gummow, Heydon, Crennan, Kiefel and Bell JJ).
18 Indirect inconsistency, by contrast, involves determining whether a law of the Commonwealth, on its proper construction, expresses an intention to state "completely, exhaustively, or exclusively, what shall be the law governing the particular conduct or matter to which its attention is directed": Ex Parte McLean (at 483 per Dixon J). A Commonwealth law of this kind is said to "cover the field" of the issue in respect of which it deals, leaving no room for the operation of a State or Territory law: Outback Ballooning (at 447 [33] per Kiefel CJ, Bell, Keane, Nettle and Gordon JJ).
19 In every case, the Court must begin by construing the Commonwealth law in question: Bell Group NV (in liq) v Western Australia [2016] HCA 21; (2016) 260 CLR 500 (at 521-522 [52] per French CJ, Kiefel, Bell, Keane, Nettle and Gordon JJ). Where the focus is direct inconsistency, it will be necessary to have regard to both laws and their operation; where an indirect inconsistency is alleged, the primary focus is on the Commonwealth law and the "field" it is intended to occupy: Outback Ballooning (at 447 [34] per Kiefel CJ, Bell, Keane, Nettle and Gordon JJ); The Commonwealth v Australian Capital Territory [2013] HCA 55; (2013) 250 CLR 441 (at 466-467 [54] per French CJ, Hayne, Crennan, Kiefel, Bell and Keane JJ). That intention is ascertained through the express terms of the law, any necessary implications and inferences drawn from the structure, subject matter and purpose of the law: Outback Ballooning (at 461-462 [78] per Gageler J). The Court is tasked with determining whether the Commonwealth law "necessarily contain[s] the implicit negative proposition" of exclusivity: Commonwealth v ACT (at 468 [59] per French CJ, Hayne, Crennan, Kiefel, Bell and Keane JJ).
20 Where the Commonwealth law does reveal an intention to govern completely or exhaustively a particular subject matter, the Court must then determine whether the State or Territory law also purports to govern that same subject matter: Momcilovic v The Queen [2011] HCA 34; (2011) 245 CLR 1 (at 116 [261] per Gummow J). If it does, it is invalid and inoperative to the extent and for the duration of the inconsistency; if it does not, the two laws may operate concurrently.