Established under the Conciliation and Arbitration Act 1904, the Court had both arbitral and judicial powers. In effect, this meant it could make an award specifying wages and conditions of employment and could also interpret and enforce the award, if necessary imposing penalties for non-compliance.

The Commonwealth Court of Conciliation and Arbitration was abolished in 1956, after the High Court of Australia ruled that it was unconstitutional for it to be vested with both arbitral and judicial powers.