THE High Court yesterday decided to end God's exclusive reign over the nation's religious affairs, opening the way for many non-mainstream religions to claim the legal status of a church and all the financial and other privileges that go with that status.
In a landmark decision handed down in Perth, the Full Court unanimously rejected a narrow definition of religion and moved towards the American judicial view under which Buddhism, Taoism, Ethical Culture and Secular Humanism have been held to be religions.
It was also a triumph for Scientology and the case of third time lucky for the Victorian Church of the New Faith which, on the facts, won exemption from payroll tax.
But more generally, the decision raises the possibility of across-the-board tax exemptions in both State and federal spheres for Scientology and other religious organisations.
"It is total affirmation of, and a win for, religious freedom in Australia," said Mr David Griffiths, a spokesman for the Church of the New Faith.
"It is also a blow to psychiatrists and the anti-religionists."
The Church of the New Faith has been engaged in a long-running battle in Victoria, and to a lesser extent throughout Australia, for recognition as a religion.
A 1965 report by a Victorian Government board of inquiry condemned Scientology as a medical and moral danger to the community.
Subsequently, the Psychological Practices Act outlawed many of Scientology's activities. That law was repealed last year, but in 1973 Scientology was recognised as a religious denomination under the federal Marriage Act.
In Victoria, the Commissioner for Payroll Tax rejected Scientology's claim for exemption, as a church, from payroll tax for the period from July 1975 to June 1977.
Although the amount at issue was only about $850, the church took the commissioner to court, "for the principle of the thing," Mr Griffiths said.
It lost the first round, and lost again on appeal to the Full Court of the Supreme Court, but yesterday won over the Full Court of the High Court in an historic decision.
The extent of exemptions granted to religious organisations was outlined in Justice Murphy's judgment yesterday.
He said: "Examples are stamp duty, payroll tax, sales tax, local government rates and the taxes on motor vehicle registrations, hire purchases, insurance premiums, the purchase and sale of marketable securities, and financial transactions.
"Ministers of religion are exempted from military conscription.
"There are many other State and federal laws which directly or indirectly subsidise or support religion."
Mr Justice Murphy went on to say that the Church of the New Faith had "easily discharged the onus of showing that it is religious," but he also sympathised with the Victorian Commissioner for Payroll Tax.
He said: "The commissioner should not be criticised for attempting to minimise the number of tax-exempt bodies. The crushing burden of taxation is heavier because of exemptions in favor of religious institutions, many of which have enormous and increasing wealth."