Work Choices: What the High Court Said is a new book that describes and analyses the case in detail . Co-author, Professor Andrew Stewart of Flinders University's Law School, says that the decision's implications extend far beyond labour regulation.
Although not a radical decision (in the sense that it was widely anticipated), the majority decision allows the Commonwealth to bring in any law that either controls or affects a corporation.
"And it doesn't matter what the law is about," Professor Stewart said.
"Because there are corporations in all parts of life, it means that in essence the Commonwealth has the power to regulate everything."
Professor Stewart said that the uneasy demarcation between State and Federal powers has been steadily encroached on by the Commonwealth in successive decades, and with this decision, the States no longer have any preserved areas of power.
"It's significant, because it's the last nail in the coffin for States' rights," he said.
While the decision gives the Commonwealth a "green light", Professor Stewart said we will not see wholesale Federal takeovers of areas such as health, education, transport or planning and development.
"Rather, the Commonwealth now has a selective power to intervene whenever it feels like it, and also a power it can use as a threat."
The Murray-Darling Basin Commission is a case in point: it seems the financial inducements offered by the Commonwealth have been sufficient incentive for the States to hand over jurisdiction.
"But if the States had said no, the Commonwealth has a range of powers including the new, expanded corporations law at its disposal, and the threat of those powers is potentially significant enough to persuade the States to play ball," Professor Stewart said.
While there are differing views on the merits of the expanded Commonwealth powers, the authors of the book are critical of the fact that the Constitution cannot give its citizens a clear indication of which branch of government is responsible for what.
"We are now left with a Constitution that doesn't resemble what was originally agreed, and in that process of development we have lost any sense of a balance between the Commonwealth and the States, or indeed a clear division of powers," Professor Stewart said.
"Who is responsible for the state of the roads I drive on? Who is responsible for what my kids are taught at school?"
Even the effect of the High Court decision on labour regulation is not uniform or all-encompassing. Because not all workplaces are run by corporations, the power is not a complete power: "There are still gaps," Professor Stewart said.
To date the Howard government's strategy has been to ask the States to hand over their powers over workplaces not currently covered, but, mainly because of the contentious nature of the work choices legislation, the States so far have not complied.
The future holds some fascinating scenarios.
Professor Stewart said that in the event of Labor taking power federally, the "hostile takeover" approach may well give way to a negotiated demarcation.
"One option for example could be that the Federal government would legislate for business run for profit, whereas the not-for-profit sector would remain within the States' control," he said.
"That would be really significant; we would be talking about universities, local councils, private schools, community service organisations and sporting groups."
Professor Stewart said the Productivity Commission has advanced another model, which is styled "competitive Federalism".
"This would see the Federal and State governments running competing regulatory systems, with the parties choosing to be regulated by the one which offers the best fit for their circumstances," he said.
"The way our rather exotic system of labour regulation developed over the last century saw unions able to get into which ever system they preferred, if they really wanted to.
"The suggestion is that we go back to that element of choice, but actually institutionalise it."
Work Choices: What the High Court Said by Andrew Stewart and George Williams is published by The Federation Press.
