The first federal tribunal to have jurisdiction over industrial matters was the Commonwealth Court of Conciliation and Arbitration. Established under the Conciliation and Arbitration Act 1904, the Court had both arbitral and judicial powers. This meant that it could make an award specifying wages and conditions of employment in settlement of an interstate dispute and it could interpret and enforce the award, if necessary imposing penalties on any party to the award who did not comply with its provisions. The Act also provided for the registration of organisations of employers and employees.

In 1956 substantial amendments were made to the Conciliation and Arbitration Act which affected a separation of the judicial and arbitrative functions of the Court. In effect, it was deemed unconstitutional for the Arbitration Court to be vested with both arbitral and judicial powers because of the acceptance in the Constitution of the separation of legislative and judicial powers. Hence amendments were made providing for the establishment of a Commonwealth Industrial Court and a Conciliation and Arbitration Commission to overtake the dual role of the Court of Conciliation & Arbitration.