Key points: Australia's High Court unanimously found emergency legislation cancelling a 2008 lease for land near Parliament House was lawful but ordered that Russia must receive compensation and that Australia pay half of Russia's legal costs. Attorney‑General Michelle Rowland said the decision affirmed the government's national security powers. Russian lawyers argued there was no proven threat and criticised taking property without compensation; the government relied on classified ASIO advice. The court did not fix compensation, leaving next steps to negotiation or further proceedings.
High Court Rules Australia Lawfully Revoked Russian Embassy Lease Near Parliament — Orders Compensation
Key points: Australia's High Court unanimously found emergency legislation cancelling a 2008 lease for land near Parliament House was lawful but ordered that Russia must receive compensation and that Australia pay half of Russia's legal costs. Attorney‑General Michelle Rowland said the decision affirmed the government's national security powers. Russian lawyers argued there was no proven threat and criticised taking property without compensation; the government relied on classified ASIO advice. The court did not fix compensation, leaving next steps to negotiation or further proceedings.
11:10 AM, 11/12/2025Security
High Court upholds emergency law but requires compensation
MELBOURNE, Australia — Australia's High Court on Wednesday unanimously dismissed Russia's constitutional challenge to emergency legislation that canceled a 2008 lease for a Canberra site intended for a new Russian embassy.
The seven justices found the federal government was within its powers to terminate the lease on national security grounds, but held that Australia must pay compensation to Russia and meet half of Russia's legal costs for bringing the case to court.
Government response
Attorney‑General Michelle Rowland welcomed the decision, saying the ruling confirmed the government acted lawfully. "Australia will always stand up for our values and we will stand up for our national security," she said, adding the government would "closely consider the next steps in light of the court's decision," a reference to arrangements for compensation.
Background
The Australian government granted a lease in 2008 for a parcel of land roughly 300 metres (328 yards) from Parliament House for a second Russian embassy. Russia continues to occupy its older, Soviet‑era embassy in the Canberra suburb of Griffith, further from Parliament.
In 2023, Prime Minister Anthony Albanese said the government had "received very clear security advice as to the risk presented by a new Russian presence so close to Parliament House," and Parliament passed emergency legislation to cancel the lease on the same day.
The special law followed a Federal Court ruling in which Russia had successfully appealed a local Canberra authority's eviction order. At the time the site contained only a small consular building and was otherwise largely undeveloped.
Arguments in court
Russian lawyers argued the statute terminating the lease was unconstitutional because it did not demonstrate an actual national security threat and that taking property without adequate compensation was unlawful. Counsel Bret Walker said it was "really disturbing" to suggest property could be taken without compensation where no explicit threat had been proven, calling it offensive to presume owners would surrender property in those circumstances.
The Australian government, represented by lawyer Stephen Donaghue, maintained it had authority to pass laws addressing national security and told the High Court that compensation should not be paid "for problems they cause themselves."
Security advice from the Australian Security Intelligence Organisation (ASIO) was relied upon by the government but was not disclosed in detail during the hearing because it is classified.
What happens next
The court did not set a dollar amount for compensation. The government now faces decisions about how much to offer and how to resolve the legal costs allocation, and may seek to negotiate a settlement with Moscow or have the matter determined in subsequent proceedings.
Note: The ruling upholds the government's right to act on classified security advice while reinforcing constitutional protections requiring compensation when property rights are affected.