What it does
The Seat of Government Acceptance Act 1909 gives legal effect to the transfer of land from New South Wales to the Commonwealth to serve as the permanent seat of federal government. Section 3 ratifies and confirms the agreement between the Commonwealth and the State that is reproduced in the First Schedule. This ratification elevates a political bargain to the status of statute.
Section 4 then declares and determines that the Seat of Government shall be in the Territory described in the Second Schedule. The operative acceptance mechanism appears in s 5. Subsection 5(1) authorises the Governor-General to issue a Proclamation fixing a “proclaimed day” on which the described Territory, once surrendered by the State, is accepted by the Commonwealth as a Territory. Subsection 5(2) spells out the legal consequence: from the proclaimed day the Territory “shall be accepted by the Commonwealth and be acquired by the Commonwealth for the Seat of Government”. Subsection 5(3) supplies the name: the Territory “shall be known as the Australian Capital Territory”.
Sections 6 and 7 address the immediate practical consequences of the transfer. Section 6(1) provides that, subject to the Act itself, all laws in force in the Territory immediately before the proclaimed day continue in force so far as they are applicable until the Commonwealth makes other provision. Section 6(2) transfers powers and functions formerly vested in the Governor of the State or any State authority so that they are exercised by the Governor-General or the corresponding Commonwealth authority “as the case requires or as the Governor-General directs”. Two provisos soften the transfer. The first allows the Governor-General to direct that a State authority may continue to exercise the power on behalf of the Commonwealth, in which case the State body “shall … be deemed to be an Authority of the Commonwealth”. The second proviso preserves, until a further Proclamation, the State’s ability to issue Crown grants in fee simple under the Real Property Act 1900 (NSW) in the name of the King and under the State seal; land so granted is deemed to remain under that State Act until the future Proclamation date.