On 22 September 1951, a referendum was held in Australia which sought approval to alter the Australian Constitution to give Parliament the power to make laws regarding communism and communists, so that the Parliament would be empowered to instate a law similar to the Communist Party Dissolution Act of 1950. It was not carried.
General background
After World War II, membership of the Communist Party of Australia had peaked at around 20,000 and Fred Paterson had won the seat of Bowen in the 1944 Queensland state election. Communists became prominent in trade unions as well as cultural and literary circles. Following the attempted nationalisation of the Australian Banks in 1948, Opposition Leader Robert Menzies became concerned that communist ideas were infiltrating the Labor Party. A Queensland rail strike in that same year cemented that idea. Menzies vowed that if elected he would outlaw communism.
1949 federal election campaign
In the 1949 general election, the newly formed Liberal Party campaigned on a strongly anti-communist, anti-interventionist platform, which targeted the Labor government's attempt to nationalise banking in Australia, as well as what Menzies considered to be a growing communist threat in the wake of World War II.
On 27 June 1949, coal miners went out on strike, supported by the Communist Party and various unions. Bargaining quickly broke down between the unions and government and on 1 August, Prime Minister Chifley sent in troops from the Australian Armed Forces to run the mines until the dispute was resolved. By its fourth day, the Sydney docks were congested with coal ships unable to leave the port, the loading of ships being severely delayed by restricted transport. By 1 July the government was examining the possibility of importing coal from Britain. The strike lasted over 6 weeks, until 15 August. Later that year, PM Chifley also brought in legislation to begin the rationing of petrol. Both of these events became key issues in the 1949 federal election campaign.
During the campaign, Menzies asserted that socialism was the "outstanding issue" of the day. He accused the Labor Party of having communist leanings, citing as proof its banking legislation and regulation in other areas of the economy. "A vote for Labor," he suggested, "is a vote for the socialist objective". Socialism was, according to Menzies, detrimental to the freedom and prosperity of the nation, and to be considered a real and prominent threat to the Australian way of life.
In December 1949, the Liberal Party with Robert Menzies as Prime Minister won a majority in the House of Representatives with 74 of 121 seats.
The Communist Party Dissolution Act
On 23 June 1950, the Communist Party Dissolution Bill 1950 (Cth) was introduced. In his speech introducing the Bill, PM Menzies read out the names of 53 members of the Communist Party of Australia, referring to them as a "traitorous minority" which threatened the security of the nation. The Bill passed the House of Representatives, but struggled to pass the Senate, which had a Labor party majority. Labor senators agreed that the Communist Party should be dissolved, but held reservations about allowing the Governor-General to 'declare' people communists. These reservations were especially strong after Menzies admitted that the names of Communist Party members which had been read out on the House floor contained errors. Amendments were proposed that removed this power, but the Labor Party later withdrew its opposition and the Bill passed the Senate without amendments on 19 October 1950. It was brought into effect as the Communist Party Dissolution Act 1950 (Cth) on 20 October 1950.
The Act authorised the Governor-General to declare any person a communist, where they are satisfied that person is "engaged, or is likely to engage, in activities prejudicial to the security and defence of the Commonwealth or to the execution or maintenance of the Constitution or of the laws of the Commonwealth". Such persons were not allowed to be employed by the Commonwealth in public service, or in industries considered vital to the defence of Australia. They were not permitted to run for office and were prohibited from joining a union. The Communist Party of Australia was declared an unlawful organisation and was dissolved, its property forfeited to the Commonwealth without compensation. Affiliated organisations were also liable to be declared unlawful, at the discretion of the Governor-General.
Australian Communist Party v Commonwealth (1951)