(3) Subsection (2) applies even if the law of the State or Territory does any one or more of the following:
(a) provides for a penalty for the offence that differs from the penalty provided for in this Part;
(b) provides for a fault element in relation to the offence that differs from the fault elements applicable to the offence under this Part;
(c) provides for a defence in relation to the offence that differs from the defences applicable to the offence under this Part."
23 This provision amounts to an express statement of Parliamentary intention that Commonwealth law is not to "cover the field" as the only law of the Federation to deal with the subject matter: Ex parte McLean [1930] HCA 12; 43 CLR 472 at 483; Viskauskas v Niland [1983] HCA 15; 153 CLR 280 at 291-292; and Telstra Corporation v Worthing [1999] HCA 12; 197 CLR 61 at 76 [27]. By this expression of intention, the "paramount legislature" (Ex parte McLean at 483) makes it clear that the State legislature may make law in the same field. That does not mean, however, that the Commonwealth Parliament has the authority to absolve State law of the effect of what is in fact inconsistency arising from the force of the Constitution, s 109: University of Wollongong v Metwally [1984] HCA 74; 158 CLR 447 at 456. If there is, notwithstanding a statement of Parliamentary intention such as in s 300.4, an inconsistency, such as a direct and conflicting inconsistency from the terms or operations of the sections, the State law will be inoperative by force of s 109: The Queen v Credit Tribunal: Ex parte General Motors Acceptance Corporation ("GMAC") [1977] HCA 34; 137 CLR 545 at 563-564.
24 The distinction often made between "indirect" and "direct" inconsistency is a way of expressing the notion as to whether the State law, if valid, would impair or detract from the Commonwealth law or its operation, to the extent that it is valid: Victoria v The Commonwealth (The 'Kakariki') [1937] HCA 82; 58 CLR 618 at 630. Central to the existence of inconsistency (whether direct or indirect) is the intention of the Commonwealth Parliament: Ansett Transport Industries (Operations) Pty Ltd v Wardley [1980] HCA 8; 142 CLR 237 at 260 and 280; Dao v Australian Postal Commission [1987] HCA 13; 162 CLR 317 at 335; Telstra v Worthing at 76-77 [27]-[28]; Metal Trades Industry Association v Amalgamated Metal Workers' and Shipwrights' Union [1983] HCA 28; 152 CLR 632 at 642.
25 There can undoubtedly be cases where the direct inconsistency and the consequential impairment arise because State law imposes a greater obligation than Commonwealth law: eg the higher State wage compared to the lower Commonwealth award, obedience to one (the Commonwealth award) being disobedience to the other (the wage fixed by the State Board) in Blackley v Devondale Cream (Vict) Pty Ltd [1968] HCA 2; 117 CLR 253 at 258-259.
26 It is also true that the inconsistency can arise from how the laws operate and how the relevant Executives administer them: The 'Kakariki' at 631 and The Commonwealth v Western Australia [1999] HCA 5; 196 CLR 392 at 417 [61]-[62] and 439-440 [139]; and Re Macks; Ex parte Saint [2000] HCA 62; 204 CLR 158 at 186 [54].
27 The argument here was based on the asserted direct inconsistency of ss 25(2) and 306.2 arising from the different penalties. Reliance was placed on Ex parte McLean. In that case, however, the legislative intention was that the relevant subject matter was to be dealt with by Commonwealth law only: Ex parte McLean at 479, 483-484 and 486-487. The same was the position in Hume v Palmer [1926] HCA 50; 38 CLR 441 at 447, 450-451 and 462.
28 Given the nature of the two laws here, it is simply not correct to say that it is impossible for both laws to be obeyed: cf GMAC at 563. Nor can it be said, in the light of s 300.4, that the Commonwealth legislative intention was that the subject of s 306, including penalty, be dealt with only by Commonwealth law.
29 Particular reliance was placed on what was said by Mason J in The Queen v Loewenthal; Ex parte Blacklock [1974] HCA 36; 131 CLR 338 at 346-347. In that case, Mr Blacklock was charged with maliciously damaging a plate glass door the property of a Commonwealth instrumentality (the Australian National Airlines Commission trading as Trans-Australian Airlines). Section 469 of the Queensland Criminal Code and s 29 of the Crimes Act 1914 (Cth) were to similar effect. The whole Court was of the view that s 29 was intended to be an exhaustive statement of criminal responsibility for damage to Commonwealth property. However, at 346-347 Mason J said:
"Had the question arisen directly for decision I should have thought that there was an inconsistency between s 29 of the Crimes Act and s 469 of the Code to the extent to which its provisions relate to property belonging to the Commonwealth or to a public authority of the Commonwealth. Although the provisions are substantially identical in describing the conduct which gives rise to the offence, the penalties prescribed differ. A difference in the penalties prescribed for conduct which is prohibited or penalized by Commonwealth and State laws has been held to give rise to inconsistency between those laws (see Hume v. Palmer (1926) 38 CLR 441 ; Ex parte McLean (1930) 43 CLR 472), at least when it appears that the Commonwealth statute by prescribing the rule to be observed evinces an intention to cover the subject matter to the exclusion of any other law. It is not to be supposed that the Commonwealth law, when it formulated the relevant rule of conduct in relation to Commonwealth property and that of its public authorities, proceeded on the footing that other and different rules of conduct might be enacted in relation to such property or that the rule of conduct which it formulated might be subjected to a different penalty. To conclude otherwise would be to say that the Commonwealth law contemplated the concurrent application of an inconsistent State law, a result which cannot be sustained. Indeed, there is here a direct conflict (in the matter of penalty) between the Commonwealth and the State law; in such a case it is impossible to see how the existence of inconsistency in the constitutional sense can be avoided by an argument which seeks to attribute to the Commonwealth law an intention not to cover the relevant field."
30 Mason J's comments are to be understood, however, in his expression of view that the provision evinced an intention to be exclusive, and so (as in Hume and Ex parte McLean) an inconsistency arose from the different penalty. This was made clear by the reasons of the Court (including Mason CJ) in McWaters v Day [1989] HCA 59; 168 CLR 289 at 295-296, where Mason CJ, Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ said:
"As evidence of the inconsistency contended for, the respondent points to the different penalties which the respective laws stipulate and to the fact that the Commonwealth offence differs in substance by containing a requirement that the person charged be incapable of having proper control of the vehicle concerned. It is true that a difference in penalties prescribed for conduct prohibited by Commonwealth and State laws has been held to give rise to inconsistency between those laws for the purposes of s 109: Hume v Palmer …; Ex parte McLean …; Reg v Loewenthal; Ex parte Blacklock …. Equally, a difference between the rules of conduct prescribed by Commonwealth and State laws might give rise to such inconsistency. But the mere fact that such differences exist is insufficient to establish an inconsistency in the relevant sense. It is necessary to inquire whether the Commonwealth statute, in prescribing the rule to be observed, evinces an intention to cover the subject-matter to the exclusion of any other law: Ex parte McLean …at 483 ; Blacklock …at 347 ; Reg v Winneke; Ex parte Gallagher (1982) 152 CLR 211 at 218, 224, 233 ; University of Wollongong v Metwally …at 456. In the words of Dixon J in Ex parte McLean:
'The inconsistency does not lie in the mere coexistence of two laws which are susceptible of simultaneous obedience. It depends upon the intention of the paramount Legislature to express by its enactment, completely, exhaustively, or exclusively, what shall be the law governing the particular conduct or matter to which its attention is directed.'"
31 Whilst the provisions in Part 9.1 of the Criminal Code do not bear the character of laws directed to customs and import and export offences: cf R v Stevens (1991) 23 NSWLR 75, the clear intention of the Commonwealth Parliament was to lay down in Part 9.1 a non-exhaustive statement of the law with respect to drug trafficking.
32 Finally, reliance was placed on what was said by this Court in Stevens at 81, where Lee CJ at CL (Carruthers and Sharpe JJ agreeing) said:
"… Of course where the Commonwealth and the State Acts both deal with the same subject matter and the purpose of both Acts is the same or the purpose of the Commonwealth Act embraces that of the State Act, inconsistency results, for example, Hume v Palmer (1926) 38 CLR 441."
33 The context of this statement was clearly the kind of intended exclusivity in Hume and Ex parte McLean and as discussed in McWaters: see Stevens at 80-81.
34 There is no invalidity or inoperativeness of s 25(2) here by reason of the Constitution, s 109.