An v Australian Broadcasting Corporation
[2024] VSC 518
•30 August 2024
(1) Having regard to the nature of the ABC’s activities and the legal relationship between it and the executive government of the Commonwealth, including the degree of control that the Executive may exercise over it, the ABC was not the ‘Commonwealth or a person ... being sued on behalf of the Commonwealth’ within the meaning of s 75(iii) of the Constitution. The matter was thus not one in federal jurisdiction on that account . [12], [23]– [83], [140].Inglis v Commonwealth Trading Bank of Australia (1969) 119 CLR 334 ; State Bank of New South Wales v Commonwealth Savings Bank of Australia (1986) 161 CLR 639; Deputy Commissioner of Taxation v State Bank of New South Wales (1992) 174 CLR 219; Australian Securities and Investments Commission v Edensor Nominees Pty Ltd (2001) 204 CLR 559; SGH Ltd v Federal Commissioner of Taxation (2002) 210 CLR 51; Queanbeyan City Council v ACTEW Corp Ltd (2011) 244 CLR 530applied. Re Australasian Performing Rights Association Ltd and Australian Broadcasting Corporation (1982) 65 FLR 437 distinguished. (2) The proceeding was not one in federal jurisdiction merely because an issue as to VCAT’s jurisdiction, which required consideration and interpretation of the Constitution, was raised and was the subject of determination by the Court. The jurisdictional controversy and the substantive controversy were separate matters. The federal nature of the question to be resolved in determining the jurisdictional controversy did not have the effect of characterising the substantive matter as a federal matter . [13], [85], [107]– [109], [140].Hanssen Pty Ltd v Owners of Strata Plan 58161 [2024] WASCA 87 followed. (3) The referral of questions of law under s 96 of the VCAT Act, with the facts found by the President, was a ‘case stated’ for the purposes of the Appeal Costs Act 1998 (Vic). It was appropriate that the applicants be granted an indemnity certificate in respect of their costs on the case so stated. [152]– [159], [161].Industrial Equity Ltd v Commissioner for Corporate Affairs [1990] VR 780 ; DPP (Vic) v Norman [2004] VSC 43; De Simone v Bevnol Constructions (No 2) (2010) 30 VR 211considered.
(a) VCAT had the power and a duty to decide, by way of a non-binding opinion, the question of jurisdiction . [116]– [136].Re Adams and the Tax Agents' Board (1976) 12 ALR 239 ; Gaynor v Attorney-General (NSW) (2020) 102 NSWLR 123; Wilson v Chan & Naylor Parramatta Pty Ltd (2020) 103 NSWLR 140; Citta Hobart Pty Ltd v Cawthorn (2022) 276 CLR 216; Thurin v Krongold Constructions (Aust) Pty Ltd (2022) 73 VR 403considered. (b) However, VCAT was not obliged to decide the question of jurisdiction itself and it was open to VCAT to inform itself by referring the question to the Court under s 96 of the VCAT Act. In a case raising a novel or complex issue, that may be the most appropriate course . [136]– [139].Re Cilli's Objection(1970) 15 FLR 426 ; Re Adams and the Tax Agents' Board (1976) 12 ALR 239; Old UGC Inc v Industrial Relations Commission of New South Wales (2006) 225 CLR 274; Gaynor v Attorney-General (NSW) (2020) 102 NSWLR 123; Citta Hobart Pty Ltd v Cawthorn (2022) 276 CLR 216considered.
a. Is the respondent in proceeding H228/2021 (the Australian Broadcasting Corporation) the Commonwealth or a person being sued on behalf of the Commonwealth for the purposes of s 75(iii) of the Commonwealth Constitution? b. Is the whole of proceeding H228/2021 nevertheless a ‘matter’ within federal jurisdiction because it involves a matter arising under the Commonwealth Constitution, or involving its interpretation?
(a) First, only a court established under Ch III of the Constitution or a court of a State within the meaning of that Chapter can exercise federal judicial power. 11 (b) Second, only the Commonwealth Parliament can confer federal jurisdiction on a court and regulate its exercise. 12 (c) Third, it follows from the second proposition that State Parliaments have no power to legislate with respect to the conferring of federal jurisdiction or regulating its exercise. This is a limitation on State legislative power. It is not a product of the application of s 109 of the Constitution. 13 (d) Fourth, federal judicial power is conferred and regulated in respect of a ‘matter’ within the meaning of ch III which for present purposes can be described, incompletely, as a justiciable controversy in respect of existing rights, duties or liabilities that might come before a court. 14 (e) Fifth, the Commonwealth Parliament through ss 39, 68 and 79 of the Judiciary Act 1903 (Cth) has invested State courts with federal jurisdiction and regulated the exercise of that jurisdiction, essentially by ‘picking up’ State laws so that they apply in federal jurisdiction, subject to the Commonwealth otherwise providing in relevant respects. 15 (f) Sixth, the determination by VCAT of a ‘building dispute’ by the making of binding orders involves the exercise of judicial power. (g) Seventh, although VCAT can and does validly exercise State judicial power, VCAT is not a court of a State within the meaning of Ch III and cannot be invested with or exercise federal judicial power. 16
(a) The resolution of the dispute will involve the exercise of judicial power. (b) The decision maker is not a court within the meaning of ch III of the Constitution. (c) The proceeding is of a kind that falls within either ss 75 or 76 of the Constitution. (i) Relevantly in this case, s 75(iii) of the Constitution gives the High Court original jurisdiction in all ‘matters ... [i]n which the Commonwealth, or a person suing or being sued on behalf of the Commonwealth, is a party’. (ii) Section 76 empowers Parliament to confer additional original jurisdiction on the High Court in other ‘matters’, including relevantly in s 76(i) ‘any matter ... [a]rising under this Constitution, or involving its interpretation’.
(a) the person refrain from committing any further contravention of the RRT Act; (b) the person pay compensation to an applicant for loss, damage or injury suffered as a result of the contravention; (c) the person do anything specified in the order with a view to redressing any loss, damage or injury suffered by the applicant as a result of the contravention. 20
Principles relevant to whether an entity is the Commonwealth
(a) First, the nature of the activities undertaken by the entity and whether they have a governmental character. While it is recognised that there is no specific dividing line between governmental functions and non-governmental functions, there are some functions which are more clearly governmental in nature, such as regulatory functions.34 35 (b) Second, the legal relationship between the entity and the executive government of the Commonwealth, and the degree of control that the executive may exercise over the corporation. 36
(a) the circumstances of establishment of the corporation and whether the corporation was established in pursuit of a public interest; 38 (b) whether there are corporators (the absence of corporators being an indicator that the intention of Parliament was to create for the Commonwealth an outward form as a convenient means of carrying on a government activity); 39 (c) whether the Commonwealth executive participates in the corporation’s formulation of policy or in decision making; 40 (d) whether the Commonwealth has the power to appoint directors; 41 (e) whether the corporation’s staff are appointed as employees under the Public Service Act 1999 (Cth);42 (f) whether the corporation is subject to audit by the Commonwealth Auditor-General; 43 (g) whether the corporation is funded by appropriations from consolidated revenue. 44
Application of the principles to this case
6 Charter of the Corporation (1) The functions of the Corporation are: (a) to provide within Australia innovative and comprehensive broadcasting services of a high standard as part of the Australian broadcasting system consisting of national, commercial and community sectors and, without limiting the generality of the foregoing, to provide: (i) broadcasting programs that contribute to a sense of national identity and inform and entertain, and reflect the cultural diversity of, the Australian community; and (ii) broadcasting programs of an educational nature;
(b) to transmit to countries outside Australia broadcasting programs of news, current affairs, entertainment and cultural enrichment that will: (i) encourage awareness of Australia and an international understanding of Australian attitudes on world affairs; (ii) enable Australians living or travelling outside Australia to obtain information about Australian affairs and Australian attitudes on world affairs; and
(ba) to provide digital media services; and (c) to encourage and promote the musical, dramatic and other performing arts in Australia.
(a) broadcast programs which contribute to a sense of national identity and reflect the cultural diversity of the Australian community (s 6(1)(a)(i)); (b) broadcast programs of an educational nature, taking into account the responsibilities of the States in relation to education (s 6(1)(a)(ii) and s 6(2)(a)(v)); (c) in broadcasting overseas, transmit programs of news, current affairs, entertainment and cultural enrichment that will encourage awareness of Australia and an international understanding of Australian attitudes on world affairs and enable Australians living or travelling outside Australia to obtain information about Australia affairs and Australian attitudes on world affairs (s 6(1)(b)); and (d) take into account in providing broadcasting services the responsibility of the Corporation as the provider of an independent national broadcasting service to provide a balance between broadcasting programs of wide appeal and specialized broadcasting programs (s 6(2)(a)(iii)).
(a) to accept the performance of any service, or the provision or any facility, for the Corporation; or (b) to accept any gift, devise or bequest to the Corporation, whether offered or made unconditionally or subject to conditions;
78 Power of Minister to give directions to Corporation in the national interest (1) If the Minister is of the opinion that the broadcasting of particular matter by the Corporation would be in the national interest, the Minister may direct the Corporation to broadcast that matter over all of its national broadcasting services or over such of them as are specified in the direction. If such a direction is given, the Corporation must broadcast that matter, free of charge, in accordance with that direction. ... (3) Subsection (1) has effect subject to section 79A. (3A) If the Minister is of the opinion that the provision of particular content by the Corporation would be in the national interest, the Minister may direct the Corporation to provide that content on all of its digital media services or on such of them as are specified in the direction. If such a direction is given, the Corporation must provide that content, free of charge, in accordance with the direction. ... (5) Where the Minister gives a direction to the Corporation under this section, the Minister shall cause a statement setting out particulars of, and the reasons for, the direction to be laid before each house of the Parliament within 7 sitting days of that House after the direction was given. (6) Except as provided by this section, or as expressly provided by a provision of another Act, the Corporation is not subject to direction by or on behalf of the Government of the Commonwealth.
(a) The Criminal Code Act 1995 (Cth) provisions relating to secrecy of information, which are in Chapter 5 dealing with ‘The security of the Commonwealth’, create certain offences for a person who obtained information when they were or are a Commonwealth officer. The definition of ‘Commonwealth officer’ excludes ‘an officer or employee of, or a person engaged, by, the [ABC]’.90 91 (b) The National Anti-Corruption Commission Act 2022 (Cth) provides that the Commissioner may, for the purposes of a corruption investigation, enter any place occupied by a Commonwealth agency. Certain premises are excluded from the operation of that provision, including premises occupied by the ABC.92 93
The ABC is not the Commonwealth for the purposes of s 75(iii) of the Constitution
The parties’ positions
(i) Until this Court rules on the jurisdictional issue raised by Q(a), there is an unresolved issue ( controversy ) as to whether the ABC is ‘the Commonwealth’ for the purposes of s 75(iii) of the Constitution, and consequently whether VCAT has jurisdiction to determine the proceeding.(ii) However, if this Court decides that the ABC is not ‘the Commonwealth’ ... then there is no longer any unresolved issue as to whether VCAT has jurisdiction and there is no constitutional impediment to VCAT exercising (State) judicial power to determine the proceeding.
The arguments as to whether the proceeding nevertheless involved a ‘matter’
(a) under Commonwealth laws, namely the Corporations Act 2001 (Cth) (Corporations Act ), because of Hanssen’s status as a corporation under that Act; and/or(b) under the Constitution or involving its interpretation, on the basis that even if the Corporations Act submission was wrong, the fact that the argument had been genuinely raised in the Tribunal made it a matter arising under the Constitution or involving its interpretation.
1. jurisdictional controversies arising under ch III of the Constitution which concern the authority of a court or tribunal to adjudicate on a substantive controversy which is the subject of proceedings before that court or tribunal; and2. substantive controversies about the validity of a law which do not concern the authority of a court or tribunal to adjudicate on the matter but rather concern the substantive rights, duties and liabilities at issue between the parties.
The substantive Tribunal proceeding is not a ‘matter’ arising under the Constitution or involving its interpretation, and the Tribunal has jurisdiction to determine it
(a) the Tribunal has the duty and power to decide for itself whether it has jurisdiction in a given dispute. That is so even where the issue is whether the dispute is a ‘matter’ in federal jurisdiction under ss 75 or 76 of the Constitution. (b) In exercising the power to decide whether it has jurisdiction, the Tribunal does not exercise federal judicial power, but State judicial power or non-judicial power. That decision making process on jurisdiction does not, therefore, transgress the limitation in Burns v Corbett. (c) It was open where the question of federal jurisdiction is more ‘contestable’ for the Tribunal to exercise its discretion to refer a question to the Court under s 96 of the VCAT Act.
The authorities on the nature of a tribunal’s decision as to its own jurisdiction
(a) A court invested with judicial power has jurisdiction to determine judicially whether it has jurisdiction. 134 (b) A tribunal that is not a court and is invested with non-judicial power has the non-judicial power: to ‘make up its mind’ or ‘ “decide” in the sense of forming an opinion’ about the limits of its own jurisdiction ‘for the purpose of determining its own action’. The authority is not to ‘reach a conclusion having legal effect’ but to form an opinion for the purpose of ‘moulding its conduct to accord with the law’.135 136 (c) As to a State tribunal that is not a court, but on which State judicial power is conferred, it ‘must be taken to have incidental jurisdiction to determine whether the hearing and determination of a particular claim or complaint would be within the legislated limits of its State jurisdiction’, and that because the power takes its nature from the nature of the power to which it is incidental, it is itself a State judicial power. Their Honours observed:137 Accordingly, the State tribunal exercises judicial power when it decides that a claim or complaint in respect of which its jurisdiction is sought to be invoked is or is not a matter of a description referred to in s 75 or s 76 of the Constitution .138
Conclusions on the Tribunal’s powers to decide jurisdiction
19 Cases stated and questions of law reserved for opinion (1) If in any proceeding— (a) a case is stated for the opinion or determination of a superior court on a question of law; or (b) a question of law is reserved in the form of a special case for the opinion of a superior court—
(2) Subject to subsection (3), a party granted an indemnity certificate under subsection (1) is entitled to be paid by the Board, on an application made to it by the party in the approved form, an amount equal to that party’s own costs of the proceeding on the case stated that the Board considers to have been reasonably incurred. (3) The maximum amount payable to a party pursuant to an indemnity certificate granted under subsection (1) is $50,000 or any other amount that is prescribed.
(a) a case stated for the opinion or determination of a superior court on a question of law; or (b) a question of law reserved in the form of a special case for the opinion of a superior court ...
1. There be no orders as to costs as between the parties. 2. The applicants are granted an indemnity certificate pursuant to s 19 of the Appeal Costs Act 1998 (Vic) for their own costs of the proceeding in this Court that the Appeal Costs Board considers to have been reasonably incurred.
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