The Acts Interpretation Act 1901, s7(2)(c)

The Acts Interpretation Act 1901, the Torrens Title Acts, and the Local Government Rating Acts: What Every Fee Simple Holder Should Understand

Nemo dat quod non habet – no one gives what he does not have. The Crown gave the fee simple by grant. What was given then is preserved now. Understanding how is the purpose of this article.

https://www.legislation.gov.au/C1901A00002/latest/text (current – opens in new tab)
https://www.legislation.gov.au/C1901A00002/asmade/text (as passed – opens in new tab)


Part I: The Foundation – The Crown Grant and the Fee Simple

All freehold title in Australia traces to a Crown grant. When the British Crown asserted sovereignty over the Australian colonies, it held, as a matter of the law applied by the colonising power, all land within the territory. From that holding the Crown made grants of the fee simple to individuals. The fee simple, as confirmed in Challis’s Real Property and by the High Court in Commonwealth v New South Wales (1923) 33 CLR 1, is the most comprehensive estate in land known to law. It confers the right to exercise over, upon, and in respect to the land every act of ownership which can enter into the imagination.

The fee simple created by the Crown grant was a right at common law. It was not created by any Act of Parliament. It was created by the act of the Crown making the grant. Once made, it was the grantee’s right, absolutely. The Crown having made the grant could not simply recall it. The right had passed.


Part II: The Torrens Title Acts and What They Record

The Torrens system of title by registration was first introduced in South Australia by the Real Property Act 1858 and progressively adopted across all Australian jurisdictions. The Acts currently in force governing Torrens title in each jurisdiction are as follows:

Western Australia: Transfer of Land Act 1893 (WA) New South Wales: Real Property Act 1900 (NSW) Victoria: Transfer of Land Act 1958 (Vic) Queensland: Land Title Act 1994 (Qld) South Australia: Real Property Act 1886 (SA) Tasmania: Land Titles Act 1980 (Tas) Australian Capital Territory: Real Property Act 1925 (ACT) Northern Territory: Real Property Act 1886 (NT)

Each of these Acts creates and maintains a register of land holdings. The registered proprietor, the man or woman whose name appears on the register as holder of the freehold, is described in the system as the “owner” of the land for the purposes of that Act and the many other Acts that use “owner” by reference to registration status.

The critical distinction, confirmed in Breskvar v Wall (1971) 126 CLR 376 by Barwick CJ, is that the Torrens system is a system of title by registration, not merely a system of registration of title. Registration under the Torrens Acts is the source of the statutory title. But what is registered is still the fee simple: the same estate that the Crown grant originally created. The register records the current holder of that estate. It does not create or extinguish the estate itself. As Victorian practice confirms, general law land, that is land held by chain of title from the Crown grant rather than by Torrens registration, continues to exist and can be converted to Torrens title voluntarily. The underlying right, the fee simple, predates and survives both systems.


Part III: Section 7(2)(c) of the Acts Interpretation Act 1901 and Its Effect on the Fee Simple

Part 4, Section 7 of the Acts Interpretation Act 1901 (Cth) is headed “Effect of repeal or amendment of Act.” Subsection (2)(c) provides that where an Act is repealed or amended, the repeal or amendment does not affect any right, privilege, obligation or liability acquired, accrued or incurred under the affected Act.

The implications for fee simple holders are direct and significant.

The original Crown grant was made under the authority of specific legislation: a Crown Lands Act, a Land Act, or a prerogative instrument given statutory force. That legislation may have been subsequently repealed, amended, or entirely replaced. The Land Act 1933 (WA), for example, has been substantially amended and in large part superseded by subsequent instruments.

But the right created by the original Crown grant, the fee simple, was acquired at the moment of the grant. It accrued to the grantee at that moment. Section 7(2)(c) preserves that right against all subsequent legislative change. The repeal or amendment of the enabling legislation does not extinguish the right that was acquired under it.

Each state has an equivalent provision. The Interpretation Act 1984 (WA), the Interpretation Act 1987 (NSW), the Interpretation of Legislation Act 1984 (Vic), the Acts Interpretation Act 1954 (Qld), the Acts Interpretation Act 1915 (SA), the Acts Interpretation Act 1931 (Tas), the Legislation Act 2001 (ACT), and the Interpretation Act 1978 (NT) each contain equivalent provisions preserving accrued rights against subsequent repeal or amendment. The principle operates uniformly across all jurisdictions.

The practical consequence is that the fee simple held by a man today is not merely a creature of the current Torrens Act. It is a right that traces to the original Crown grant, has survived every subsequent legislative amendment through the operation of section 7(2)(c) and its state equivalents, and is recorded but not created by the current statutory register.


Part IV: The Local Government Acts and the “Owner” Label

Local Government Acts in each jurisdiction impose rates on land. Those rates are assessed against and levied upon the “owner” or in some cases the “occupier” of rateable land. The “owner” for rating purposes is defined by reference to the Torrens register: it is the registered proprietor. The Local Government Acts currently in force in each jurisdiction are:

Western Australia: Local Government Act 1995 (WA) New South Wales: Local Government Act 1993 (NSW) Victoria: Local Government Act 2020 (Vic) Queensland: Local Government Act 2009 (Qld) South Australia: Local Government Act 1999 (SA) Tasmania: Local Government Act 1993 (Tas) Australian Capital Territory: City of Canberra Arms Act 1932 (ACT) and related instruments, with rating under the Rates Act 2004 (ACT) Northern Territory: Local Government Act 2008 (NT)

In Western Australia, section 6.76 of the Local Government Act 1995 (WA) allows objections to rates notices where there is an error in the rate record with respect to the identity of the owner or occupier of any land, or where the land is not rateable land. The provision expressly contemplates that the identity of the “owner” recorded in the rate record may be incorrect. That provision is significant: it acknowledges that the rate record is a record of an administrative identification, and that identification may be wrong.

The “owner” as defined and used in each Local Government Act is a statutory label. It identifies the registered proprietor for the purpose of rating. It does not describe the man’s relationship to his land at common law. It does not engage his fee simple right. It attaches obligations to a statutory capacity derived from registration, not from the right created by the Crown grant.


Part V: The Distinction Between the Fee Simple Right and the Rating Obligation

This is the point at which the analysis has its most practical application.

A man’s fee simple right in his land derives from the Crown grant. It was acquired at the moment of grant. It is preserved by section 7(2)(c) through all subsequent legislative change. It is the most comprehensive right in land known to law.

The rating obligation imposed by the Local Government Act is a statutory obligation. It attaches to the registered proprietor, the “owner” as defined by the Act for its rating purposes. It arises from a separate statutory act: the assessment of the land by the Valuer-General or equivalent authority and the issuing of a rates notice by the local government to the registered proprietor.

These are two distinct things. The fee simple right is the man’s right. The rating obligation is the state’s imposition upon the statutory capacity of registered proprietor. The man who holds the fee simple and is registered as proprietor carries both, but they are not the same thing and they do not derive from the same source.

The significance of that distinction is this: the rating obligation attaches to the statutory capacity of registered proprietor. It does not derive from the fee simple itself. A man who distinguishes himself as the rightful holder of the fee simple, while acknowledging that he is recorded as registered proprietor, is making a precise and defensible point: his right is prior to and independent of the statutory regime. The obligations that regime imposes are matters of the current statute, not of his underlying right.

Furthermore, section 7(2)(c) confirms that his accrued right survives any future legislative change to the rating regime. If a future Act purports to alter or extinguish the fee simple by way of a new rating or land tax instrument, the accrued right is preserved against that change unless just terms are paid under section 51(xxxi) of the Constitution, which requires just terms for the acquisition of property on any account of the Commonwealth. Equivalent protections exist in state constitutions and in the general principle that accrued property rights cannot be extinguished by implication.


Part VI: The Interaction of the Torrens Acts and Local Government Acts in Practice

In practice, local governments exercise their rating powers by reference to information held in the Torrens register. The registered proprietor is identified as the “owner” for rating purposes. Rates notices are addressed to the registered proprietor at the address on the register. The local government does not look behind the register to the original Crown grant. It does not inquire into the nature of the man’s right. It treats the registered proprietor as the “owner” as a matter of administrative convenience.

That administrative convenience is not the same as legal establishment of the capacity. A rates notice addressed to “the owner” at a registered address does not, by the act of its delivery, establish that the man who receives it has accepted the statutory capacity of “owner” or the obligations that capacity carries. It is the local government’s assertion of that capacity. Whether the capacity has been properly established and whether its obligations properly attach to the man as a living man rather than to the registered proprietor as a statutory construct are distinct questions that the rates notice itself does not answer.

The Local Government Act 1995 (WA) section 6.76, and equivalent objection provisions in other jurisdictions, provide the formal mechanism for challenging the identity of the party recorded as owner. That mechanism exists because the Acts recognise that the administrative identification may be wrong. A man who places on the record a precise distinction between his identity as the rightful holder of the fee simple and his administrative identification as registered proprietor is not doing anything the Act does not itself contemplate.


Part VII: Summary of the Legal Structure

The structure that emerges from this analysis has four layers, each distinct and each building on the one below.

At the base is the Crown grant: the creation of the fee simple right by the act of the Crown. That right is ens reale. It exists independently of every statute and survives every subsequent legislative change by the operation of section 7(2)(c) of the Acts Interpretation Act 1901 (Cth) and its state equivalents.

Above that is the Torrens register: the statutory record of who currently holds the fee simple. The register provides indefeasibility of title as against third parties. It records the holder of the fee simple. It does not create the right.

Above that is the label “owner” as applied by the Torrens Acts: the identification of the registered proprietor for the purposes of the registration system. That label is a statutory construct. It attaches to the man recorded on the register. It does not describe his common law right.

At the top is the rating and taxation regime imposed by the Local Government Acts: statutory obligations imposed on the “owner” as defined by those Acts for their own purposes. Those obligations derive from the current statute. They are separate from and subsequent to the fee simple right.

A living man who understands this structure knows that his right is at the base, not at the top. The obligations imposed by current legislation sit above the right and do not define it. The right was given by the Crown and preserved by the Acts Interpretation Act. The obligations are imposed by statute and may be questioned on the precise basis that the statutory capacity has been asserted, not established.


Cuius est solum, eius est usque ad coelum et ad inferos. To whomsoever the soil belongs, it belongs to him up to the sky and down to the depths. The Crown grant gave the soil. Section 7(2)(c) confirms the gift was permanent. The Torrens register records it. The Local Government Act rates it. But the right itself belongs to the man, not to the register, and not to the rating notice.

Compare the “as passed” to current

The core principle: what is “still applicable”?

The as-passed Act (No. 2, 1901) was not repealed wholesale. It was amended over 120 years, with the 2011 restructure being the most sweeping change. The critical point, which the Act itself establishes, is this: anything that was in force under the original Act that has since been amended or repealed is subject to s7(2)(c) of the current Act (which was itself derived from original s8). Rights, privileges, obligations and liabilities that accrued under provisions of the original Act survive their amendment or repeal.

Beyond that, here is a provision-by-provision assessment of what was in the original Act that has genuine continuing relevance or utility.


Provisions that survived substantially intact

Original s8 (now current s7) – Effect of repeal. The substance is preserved and actually expanded. The current s7 is broader than the original, so a man relying on the original s8 protections has at minimum everything the original provided.

Original s9 – Repealed Acts remain in force until substituted provisions operate. This was dropped in 2011 but its substance had practical value: if Parliament repeals an Act and substitutes new provisions, the old provisions stay on foot until the new ones commence. That principle still operates as a matter of constitutional common law, but the express statutory provision is gone.

Original s11 – Expiration of an Act does not affect civil proceedings already commenced. The current Act retains this at s7 as well, absorbed into the broader repeal/amendment effect provision.


Provisions of specific continuing interest

Original s8(c) (now current s7(2)(c)) – The preservation of accrued rights. Already in your project knowledge. Nothing has changed substantively except the current version is more precisely drafted.

Original s22(d) – Definition of “Estate”:

“Estate” shall include any estate or interest charge right title claim demand lien or incumbrance at law or in equity.

This is notably broader in some respects than modern usage, and the word “lien” is expressly included. That original definition can be relevant where a man argues an accrued interest predating a legislative change to the definition.

Original s22(c) – Definition of “Land”:

“Land” shall include messuages tenements and hereditaments, corporeal and incorporeal, of any tenure or description, and whatever may be the estate or interest therein.

The traditional common law scope of “land” including hereditaments. The current s2B has a narrower or differently framed definition. For any right accrued in relation to land under an earlier Act, the original definition governs that accrued right.

Original s31 – Judicial notice of Proclamations and Orders of the Governor-General. Dropped in the 2011 restructure. This had practical value: any party could require judicial notice of a Proclamation without tendering it in evidence. The current Act does not expressly replicate this in the same form, though common law principles of judicial notice still operate.

Original s33(4) – Power to appoint includes power to remove. Retained in substance in current s33AA and s33A, so no gap here.

Original s2 – The Act “shall be binding on the Crown.” This remains in the current Act at s2A. No change in substance.


The most practically useful point

The original s8 (the predecessor to current s7) used slightly different language in one respect worth noting. The original reads:

“…the repeal shall not affect any right privilege obligation or liability acquired accrued or incurred under any Act so repealed…”

The current s7(2)(c) reads:

“…affect any right, privilege, obligation or liability acquired, accrued or incurred under the affected Act or part…”

The original language “any Act so repealed” is arguably broader in that it refers to the whole of “any Act so repealed” without the qualification “or part” appearing in the same limiting way. In practice courts have not drawn a meaningful distinction, but for a man arguing a right acquired under an entire legislative scheme, the original language is if anything more favourable.


What cannot be applied from the original

The original definitions in s17 for constitutional offices and s18 for “United Kingdom” and “British possession” are now superseded by the current s2B definitions and by subsequent constitutional and legislative changes. Relying on the 1901 definitions for those terms would be unsound.

Lex posterior derogat legi priori – the later law overrides the earlier – applies to those superseded definitional provisions. However, where a right accrued under a provision that used the original definition, that original definition still governs the accrued right, by operation of s7(2)(c) itself.


Summary answer

The provisions of most continuing practical value from the as-passed Act are:

  1. Original s8 (accrued rights) – the substance is preserved and in some respects the original language is at least as useful as the current form.
  2. Original s9 (repealed Acts remain in force pending substituted provisions) – gone from the statute but the principle survived at common law.
  3. Original s22(c) and (d) – definitions of “land” and “estate” – relevant where rights accrued under earlier legislation that used those definitions.
  4. Original s31 – judicial notice of Proclamations – no longer expressly stated, though common law fills the gap.

End

 

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