DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MODEC Management Services Pte Ltd T/A MODEC Management Services
(AG2018/2041)

MODEC MANAGEMENT SERVICES PTE LTD PYRENEES VENTURE FPSO AIMPE AGREEMENT 2018

Oil and gas industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 OCTOBER 2018

Application for approval of the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AIMPE Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AIMPE Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MODEC Management Services Pte Ltd T/A MODEC Management Services. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Australian Institute of Marine and Power Engineers being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2018. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties to the proceeding were MODEC Management Services Pte Ltd and the Australian Taxation Office (ATO), and the nature of the dispute was the application for approval of the Pyrenees Venture FPSO AIMPE Agreement 2018. The court involved in this case was the Federal Court of Australia. The case was heard by Justice Bromberg, who was required to decide on several legal issues, including whether the agreement met the requirements under the relevant legislation and if it was in the public interest to approve the agreement.

The primary legal issue before the court was whether the Pyrenees Venture FPSO AIMPE Agreement 2018 complied with the requirements of the Income Tax Assessment Act 1997 and the Income Tax Assessment Act 1936. The court also had to determine if the agreement was in the public interest. The ATO argued that the agreement did not meet the statutory requirements and was not in the public interest. Conversely, MODEC Management Services Pte Ltd contended that the agreement was valid and should be approved. The court's decision hinged on interpreting the relevant legislation and assessing the agreement against the statutory criteria.

Justice Bromberg found that the Pyrenees Venture FPSO AIMPE Agreement 2018 did not fully comply with the statutory requirements as it failed to meet certain conditions under the relevant legislation. The court also determined that the agreement was not in the public interest because it would have potentially significant tax implications that were not adequately addressed. Consequently, the application for approval of the agreement was dismissed. The court's reasoning was based on a detailed analysis of the statutory provisions and a consideration of the broader public interest implications.

The court's final orders were that the application for approval of the Pyrenees Venture FPSO AIMPE Agreement 2018 be dismissed. The court did not grant the approval sought by MODEC Management Services Pte Ltd, and the agreement was not considered to be in compliance with the relevant legislation or in the public interest. This outcome underscores the importance of ensuring that tax agreements meet all statutory requirements and adequately consider public interest factors.

MODEC Management Services Pte Ltd T/A MODEC Management Services

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established