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THE<br />

BULLETIN<br />

<strong>February</strong> <strong>2018</strong><br />

Volume 40 - Issue 1<br />

INSIDE:<br />

PARTIES RESPOND<br />

TO OUR KEY<br />

ELECTION ISSUES<br />

POLITICS & THE LAW


St Aloysius College<br />

<strong>2018</strong><br />

OPEN<br />

DAY<br />

Monday 5 March <strong>2018</strong>, 6-8pm<br />

ELC to Year 12 City School for Girls<br />

• Hear about our outstanding academic record<br />

and exceptional pastoral care.<br />

• Visit our city school with its easy access to<br />

Adelaide’s educational resources.<br />

• Meet our teachers and hear how they provide<br />

engaging, contemporary learning experiences<br />

for young people.<br />

• Tour our facilities which include a gymnasium,<br />

two full-sized indoor basketball courts and a<br />

heated swimming pool.<br />

Tejaspreet Ghataura, Year 12<br />

Dux 2017 achieved an<br />

ATAR of 99.3<br />

Congratulations to the Class of 2017!<br />

Every student successfully<br />

completed their SACE, with 28%<br />

achieving an ATAR over 90. Special<br />

congratulations to Tejaspreet<br />

Ghataura, Dux of the College for<br />

2017. Tejas was one of five students<br />

achieving an ATAR over 99.<br />

53 Wakefield Street, Adelaide SA 5000<br />

Tel 8217 3200 | registrar@sac.sa.edu.au | www.sac.sa.edu.au<br />

A Ministry of Mercy Education Ltd


This issue of The Law Society of South Australia: Bulletin is<br />

cited as (<strong>2018</strong>) 40 (1) <strong>LSB</strong>(SA). ISSN 1038-6777<br />

CONTENTS<br />

POLITICS & THE LAW<br />

REGULAR COLUMNS<br />

6 Eligibiilty of dual citizens: the<br />

coming-of-age of Section 44<br />

By Assoc Prof Matthew Stubbs & Dr<br />

Adam <strong>Web</strong>ster<br />

10 Protest & political communication<br />

after Brown v Tasmania<br />

Prof Mary Heath & Dr Peter Burdon<br />

12 Parliamentary prayer & the<br />

establishment of religion<br />

By Prof Paul Babie<br />

16 Law Society’s key election issues<br />

24 Special feature: Poems for the<br />

‘Citizenship 7’<br />

By Stephen McDonald<br />

32 Speech: The role of the Attorney<br />

General – By Chris Sumner AM<br />

36 The SA Parliament & parliamentary<br />

privilege – By Jan Davis<br />

4 President’s Message<br />

5 From the Editor<br />

23 Bookshelf<br />

28 Risk Watch<br />

30 Get in on the Act<br />

40 Gazing in the Gazette<br />

43 Tax Files<br />

20 Politicians respond to key legal issues<br />

Executive Members<br />

President:<br />

Tim Mellor<br />

President-Elect: A Nikolovski<br />

Vice President (M): T White<br />

Vice President (F): R Sandford<br />

Treasurer:<br />

A Michaels<br />

Immediate Past President: A Rossi<br />

Council Members: Vacant<br />

Vacant<br />

Metropolitan Council Members<br />

T Dibden<br />

S Gibbons<br />

M Janus<br />

A Lazarevich<br />

L Polson<br />

T Vozzo<br />

M Frayne SC V Gilliland<br />

F Bell<br />

M Mackie<br />

M Boyle<br />

M Smith<br />

Country Members<br />

S Minney<br />

(Northern and Western Region)<br />

P Ryan<br />

(Central Region)<br />

J Kyrimis<br />

(Southern Region)<br />

Junior Members<br />

R Piccolo S Hooper<br />

Ex Officio Members<br />

The Hon J Rau, Prof W Lacey,<br />

Prof M de Zwart, Prof T Leiman<br />

KEY LAW SOCIETY CONTACTS<br />

Chief Executive<br />

Stephen Hodder<br />

stephen.hodder@lawsocietysa.asn.au<br />

Executive Officer<br />

Rosemary Pridmore<br />

rosemary.pridmore@lawsocietysa.asn.au<br />

Chief Operations Officer<br />

Dale Weetman<br />

dale.weetman@lawsocietysa.asn.au<br />

Member Services Manager<br />

Michelle King<br />

michelle.king@lawsocietysa.asn.au<br />

Director (Ethics and Practice)<br />

Rosalind Burke<br />

rosalind.burke@lawsocietysa.asn.au<br />

Director (Law Claims)<br />

Geoff Thomas<br />

gthomas@lawguard.com.au<br />

Manager (Education)<br />

Sally Browne<br />

sally.browne@lawsocietysa.asn.au<br />

Manager (LAF)<br />

Annie MacRae<br />

annie.macrae@lawsocietysa.asn.au<br />

THE BULLETIN<br />

Editor<br />

Michael Esposito<br />

bulletin@lawsocietysa.asn.au<br />

Editorial Committee<br />

D Barnfield E Olsson<br />

S Kljun S Hodder<br />

R Earles P Wilkinson<br />

S Errington E Belperio<br />

A Siow B Grant<br />

A Bradshaw R Hasda<br />

E Moran J Napier<br />

The Law Society Bulletin is published<br />

monthly (except January) by:<br />

The Law Society of South Australia,<br />

Level 10-11, 178 North Tce, Adelaide<br />

Ph: (08) 8229 0200<br />

Fax: (08) 8231 1929<br />

Email: bulletin@lawsocietysa.asn.au<br />

All contributions letters and enquiries<br />

should be directed to<br />

The Editor, The Law Society Bulletin,<br />

GPO Box 2066,<br />

Adelaide 5001.<br />

Views expressed in the Bulletin<br />

advertising material included are not<br />

necessarily endorsed by The Law Society<br />

of South Australia. No responsibility<br />

is accepted by the Society, Editor,<br />

Publisher or Printer for accuracy of<br />

information or errors or omissions.<br />

PUBLISHER/ADVERTISER<br />

Boylen<br />

Level 3, 47 South Terrace,<br />

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Email: admin@boylen.com.au<br />

Studio Manager: Cindy Ridgwell<br />

Layout: Henry Rivera<br />

Advertising<br />

Email: sales@boylen.com.au<br />

Printer<br />

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101 Mooringe Ave,<br />

Camden Park SA 5038.<br />

Ph: (08) 8376 1188


PRESIDENT’S MESSAGE<br />

As the election approaches,<br />

we’re calling for a greater<br />

commitment to justice<br />

TIM MELLOR, PRESIDENT<br />

Dear Colleagues,<br />

A happy and healthy New Year to<br />

you all. It is a year in which, next month,<br />

we will be going to the polls to elect<br />

our state government for the next four<br />

years. Thus the theme of this Bulletin -<br />

Politics and the Law. This is necessarily an<br />

examination of issues at a higher policy<br />

level.<br />

I have had the advantage of looking over<br />

the initial President’s Messages provided by<br />

my predecessors. In 2014 Morry Bailes was<br />

considering the prospective state election,<br />

and reviewed the top policy issues which<br />

the Law Society sought to agitate and<br />

promote. A summary of our present list of<br />

priorities appears in this edition.<br />

Our continuing and overarching concern<br />

is the notion that the administration of<br />

and access to justice must be regarded as a<br />

primary objective of society. It should be<br />

considered on a par with adequate access<br />

to medical and health services, education<br />

and training, and community security and<br />

protection.<br />

A comparison of our key legal issues for<br />

2014 and <strong>2018</strong> indicates that there have<br />

been some important advances in that<br />

period. Nonetheless there remains a core<br />

of issues that have carried over.<br />

The notion of the accessible and efficient<br />

operation of our courts was, and is, a<br />

principal policy issue.<br />

We welcome the positive steps which<br />

have been taken toward the development<br />

of the electronic lodgement of documents.<br />

It is also pleasing to see the proposed<br />

works (albeit limited) on the refurbishment<br />

of the Supreme and District Courts<br />

precinct. Our concern remains that funding<br />

cuts to the operation of the courts have<br />

come at a significant cost, including further<br />

4<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

limitations to court access in remote and<br />

regional areas and in some suburban<br />

courts, and some reductions in judicial<br />

officers.<br />

We are also concerned about the level<br />

to which those with disabilities have been<br />

considered in relation to the present<br />

proposed refurbishments.<br />

Our priorities list continues to raise<br />

vital concerns regarding access to justice.<br />

We look to promote fairer and more<br />

substantial compensation in areas including<br />

CTP, workers compensation and victims<br />

of crime. It is clear that reasonable and<br />

achievable improvements could and should<br />

be made to these compensation schemes.<br />

I would encourage you all to read and<br />

consider the Society’s key election issues<br />

(accessible via the home page of the<br />

Law Society website). There will not be<br />

universal acceptance of the order of<br />

priorities, and there may be considered<br />

to be omissions. I do consider, however,<br />

that they are all properly directed to the<br />

objective above. We will of course continue<br />

to advocate for a number of other<br />

important legal issues before and beyond<br />

the election.<br />

The role of our next state government,<br />

of whatever composition, will not be easy.<br />

The competing claims on the government’s<br />

resources are vast, and the means to<br />

address those claims are limited. We do<br />

have a valid case to put, and we will do so<br />

with energy and conviction.<br />

Our principal point of contact with the<br />

government of the day is the Attorney-<br />

General. The Legal Practitioners Act provides<br />

a specific statutory appointment of the<br />

Attorney as a member of the Council of<br />

the Law Society. Although the attendance<br />

of Attorneys at our meetings has been<br />

irregular, the fact is that agenda papers and<br />

minutes are provided to their office as part<br />

of that role.<br />

This relationship, naturally, is attended<br />

with some tensions – the Attorney is a<br />

member of a government whose policies<br />

the Society may be duty-bound, and must<br />

always be free, to criticise. I consider this,<br />

however, to be a vital relationship, and an<br />

essential conduit to government. It is one<br />

which should be marked by mutual respect<br />

and understanding.<br />

I imagine that the role of the Attorney-<br />

General in dealing with other ministerial<br />

colleagues won’t always be easy, but I<br />

believe that it is a reasonable expectation<br />

that any occupant of that office would be<br />

an advocate for and guardian of the rule<br />

of law in the deliberations of cabinet. The<br />

Law Society should support that role.<br />

We are keen also to support the<br />

operation of the parliamentary process<br />

through the provision of information<br />

to all parliamentarians. Many of you will<br />

be in a position, through your political<br />

involvement or contacts, to draw the<br />

attention of members of parliament and<br />

candidates for election to the items in our<br />

key election issue submisison. I would urge<br />

you to consider doing so. B<br />

We will of course continue to advocate for a<br />

number of other important legal issues before<br />

and beyond the election.


FROM THE EDITOR<br />

New Year,<br />

New Opportunities<br />

MICHAEL ESPOSITO, EDITOR<br />

Happy New Year to all. For most of<br />

you, the Christmas holidays are but a<br />

distant memory as the routine of work sets<br />

in but I hope the break has left you energised<br />

and enthusiastic about the year ahead.<br />

Following the success of last year’s event,<br />

the Law Society is inviting Members to<br />

celebrate the “Happy New Legal Year” at<br />

Adelaide Oval on 8 <strong>February</strong>. While the<br />

working year has already well and truly<br />

started for many, the event is a great opportunity<br />

to catch up with peers and reflect<br />

on the important role that practitioners<br />

play in society and to pledge a commitment<br />

to uphold the principles of fairness that<br />

underpins the practice of law.<br />

It will also be an opportunity to meet the<br />

Society’s new President, Tim Mellor, who<br />

in his inaugural President’s Message for the<br />

Bulletin outlines the Society’s key priorities<br />

in the lead-up to the State election next<br />

month.<br />

Most political parties have responded to<br />

our key election policy issues. A summary<br />

of those responses is in this Bulletin and<br />

the full responses will be available to Members<br />

via a special Advocacy Notes newsletter<br />

and via the Law Society website.<br />

contributions to the law, including as<br />

Counsel Assisting in the in the Children in<br />

State Care Commission of Inquiry headed<br />

by Justice Ted Mullighan QC, as Counsel<br />

Assisting the Board of Inquiry into the<br />

conviction of David Eastman for the<br />

murder of Colin Winchester, and as head<br />

of a review of South Australia’s rape and<br />

sexual assault laws, leading to significant<br />

changes to the state’s Evidence Act and<br />

Criminal Law Consolidation Act.<br />

Judge Chapman began her work as an<br />

Associate to Justice Duggan in in 1994.<br />

She has since worked with the Crown<br />

Solicitor’s Office, as a Crown Prosecutor,<br />

and in 2005 signed the Bar roll before<br />

taking silk in 2010.<br />

Her Honour has also been involved in the<br />

Legal Practitioners Disciplinary Tribunal<br />

the Sentencing Advisory Council, and<br />

Australian New Zealand Forensic Science<br />

Society<br />

On 7 November, His Honour Judge<br />

Steven Dolphin was appointed President of<br />

the South Australian Employment Tribunal<br />

(SAET), replacing His Honour President<br />

Senior Judge Peter McCusker who retired<br />

on 31 October 2017.<br />

Judge Dolphin was appointed as Deputy<br />

President of SAET in 2015 and became a<br />

Judge of the District Court on 1 July 2017.<br />

He has had an extensive legal career<br />

in industrial relations and workers<br />

compensation and has been heavily<br />

involved with the Law Society, including<br />

as Chair of the Industrial Relations<br />

Committee.<br />

Judge Dolphin’s previous role has been<br />

filled by Margaret Kelly, who on 19<br />

December 2017 was appointed a Judge of<br />

the District Court and Deputy President of<br />

the SAET.<br />

Judge Kelly, a former President of the<br />

Law Society, has extensive experience in<br />

worker’s compensation, personal injury,<br />

insurance and industrial law. B<br />

SOCIETY COMMENDS NEW JUDICIAL<br />

APPOINTMENTS<br />

The Law Society congratulates a number<br />

of recent appointees to South Australian<br />

Courts.<br />

On 31 October 2017, Her Honour Liesl<br />

Chapman SC was appointed as a Judge of<br />

the District Court<br />

At the Special Sitting for Judge<br />

Chapman on 22 November, Her Honour<br />

was described as one of the “standout<br />

prosecutors/criminal barristers of [her]<br />

generation”.<br />

She has made a number of significant<br />

Chief Justice Chris Kourakis with Judge Chapman at her swearing in.<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN<br />

5


POLITICS AND THE LAW<br />

Eligibility of Dual Citizens:<br />

The Coming-of-Age of Section 44<br />

ASSOCIATE PROFESSOR MATTHEW STUBBS, UNIVERSITY OF ADELAIDE AND DR ADAM WEBSTER, UNIVERSITY OF OXFORD<br />

In 2017, Australia played host to “the<br />

world’s most ridiculous constitutional<br />

crisis”. 1 Section 44 of the Australian<br />

Constitution, which had been invoked in<br />

only a handful of cases to find candidates<br />

ineligible to be chosen to sit in the<br />

Commonwealth Parliament, 2 was suddenly<br />

at the forefront of national attention. So<br />

was the High Court, sitting as the Court<br />

of Disputed Returns, which by the end<br />

of 2017 had ruled that eight of the 10<br />

individuals it had examined were ineligible<br />

to have been elected at the 2016 election. 3<br />

A further three persons have been referred<br />

to the High Court for consideration<br />

in <strong>2018</strong>, with all three conceding their<br />

ineligibility. 4 Also, without reference to<br />

the Court, John Alexander resigned on<br />

the basis of ineligibility. Accordingly,<br />

by the end of 2017, it appears that 12<br />

of the 226 members of the Parliament<br />

have been confirmed to be ineligible.<br />

Yet more politicians (and their potential<br />

replacements) may still have questions<br />

surrounding their eligibility to be resolved<br />

in <strong>2018</strong>. How did we end up in this<br />

remarkable situation?<br />

Section 44 of the Australian Constitution<br />

is an apparently simple provision which<br />

lists a series of matters that render a person<br />

“incapable of being chosen or of sitting<br />

as a senator or a member of the House of<br />

Representatives”. These include:<br />

i. Where a person ‘is under any<br />

acknowledgment of allegiance,<br />

obedience, or adherence to a foreign<br />

power, or is a subject or a citizen or<br />

entitled to the rights or privileges of a<br />

subject or a citizen of a foreign power’;<br />

ii. Where a person ‘has been convicted<br />

and is under sentence, or subject to be<br />

sentenced, for any offence punishable<br />

… by imprisonment for one year or<br />

longer’;<br />

iii. Being an undischarged bankrupt<br />

or insolvent;<br />

iv. Holding ‘any office of profit under<br />

the Crown’;<br />

v. Having ‘any direct or indirect pecuniary<br />

interest in any agreement with the<br />

Public Service of the Commonwealth’.<br />

Section 44 is intended to reinforce our<br />

elected representatives’ “duty to serve<br />

and, in serving, to act with fidelity and<br />

with a single-mindedness for the welfare<br />

of the community”. 5<br />

The decisions in early 2017 that Rodney<br />

Culleton and Bob Day were ineligible<br />

depended upon sub-ss 44(ii) and (v)<br />

respectively. 6 The ensuing crisis has<br />

predominantly concerned whether s 44(i)<br />

renders ineligible dual citizens (that is,<br />

persons who are citizens of another nation<br />

as well as of Australia).<br />

Variations on three potential approaches<br />

to s 44(i) ineligibility were suggested in<br />

respect of the seven persons referred to<br />

the Court in Re Canavan. In essence, they<br />

would apply the provision:<br />

i. in all cases where a person holds<br />

‘citizenship of a foreign power’ (subject<br />

to a limited exception discussed below); 7<br />

ii. only where foreign citizenship was<br />

voluntarily obtained/chosen, or<br />

voluntarily/knowingly retained; 8<br />

iii. only where a person had knowledge that<br />

would cause a reasonable person in their<br />

situation to inquire as to whether they<br />

held foreign citizenship. 9<br />

Other than the first alternative, each of<br />

these approaches “departs substantially<br />

from the text” of s 44(i), 10 by limiting<br />

its application to particular sets of<br />

circumstances not expressed in the subsection.<br />

In so doing, each draws on the<br />

dissenting approach of Deane J in Skyes<br />

v Cleary, where his Honour expressed the<br />

view that s 44(i) should be interpreted<br />

as “impliedly containing a ... mental<br />

element”. 11<br />

The unanimous High Court in Re<br />

Canavan adopted the first approach to the<br />

interpretation of s 44(i). Their Honours<br />

relied upon the following reasons:<br />

i. the text, which deals with ‘allegiance,<br />

obedience, or adherence’ separately<br />

from having the status of ‘a subject or<br />

a citizen’ (implying that the first covers<br />

situations of voluntary allegiance,<br />

whereas the second is broader) 12 and<br />

which ‘is cast in peremptory terms’; 13<br />

ii. its purpose, which was said to be ‘to<br />

ensure “that members of Parliament<br />

did not have a split allegiance”’, 14 not<br />

merely by reference to ‘the person’s<br />

subjective feelings of allegiance’, 15 but<br />

also objectively where the split arises<br />

from the existence of a legal ‘duty to a<br />

foreign power as an aspect of the status<br />

of citizenship’; 16<br />

iii. its drafting history, which their Honours<br />

concluded demonstrated that s 44(i)<br />

was not addressed merely to situations<br />

where there has been ‘an “act” done by<br />

a person whereby the person became a<br />

… [foreign] citizen’; 17<br />

iv. the consequence of the alternative<br />

interpretation, which by introducing a<br />

mental element would lead to ‘the need<br />

for an investigation into the state of<br />

mind of a candidate’, 18 which would in<br />

turn lead to ‘uncertainties [which] are<br />

apt to undermine stable representative<br />

government’; 19<br />

v. that, although a strict application of<br />

s 44(i) might be thought to be harsh,<br />

‘nomination for election is manifestly<br />

an occasion for serious reflection’ by a<br />

person as to their eligibility. 20<br />

One unusual aspect of the application of<br />

s 44(i) is its reliance on foreign law. As the<br />

Court explained in Re Canavan:<br />

“Whether a person has the status of …<br />

a citizen of a foreign power necessarily<br />

depends upon the law of the foreign<br />

power … because it is only the law<br />

of the foreign power that can be the<br />

source of the status of citizenship<br />

or of the rights and duties involved in<br />

that status”. 21<br />

This should not be a surprise – it is hard<br />

to see how it could be otherwise, and<br />

this is also consistent with the approach<br />

of international law that “[i]t is for each<br />

State to determine under its own law<br />

who are its nationals”. 22 This is also,<br />

practically speaking, why so many people<br />

have managed to fall foul of s 44(i) –<br />

some nations have relatively generous<br />

citizenship laws, such that citizenship can<br />

be inherited from a parent (or grandparent)<br />

by operation of law, without there being<br />

any direct personal involvement of an<br />

individual with that country.<br />

This role of foreign law is, however, the<br />

subject of the only exception allowed by<br />

the High Court. Recognising that there<br />

6<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


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POLITICS AND THE LAW<br />

is a “constitutional imperative that an<br />

Australian citizen not be irremediably<br />

prevented by foreign law from participation<br />

in representative government”, the High<br />

Court held that s 44(i) would not disqualify<br />

a person:<br />

“Where it can be demonstrated that<br />

the person has taken all steps that are<br />

reasonably required by the foreign law to<br />

renounce his or her citizenship and<br />

within his or her power”. 23<br />

This exception did not avail any of the<br />

persons found to be ineligible in 2017.<br />

The approach to s 44(i) taken by the<br />

unanimous High Court in Re Canavan<br />

led to findings of ineligibility for five of<br />

the seven persons whose situation was<br />

considered, as the Court was satisfied they<br />

held “citizenship of a foreign power”.<br />

The two persons held to be eligible were<br />

found not to hold “citizenship of a foreign<br />

power”: the Court concluded that Matthew<br />

Canavan was not, in fact, a citizen of<br />

Italy; 24 and that Nick Xenophon was only<br />

entitled to a status under UK law known as<br />

“British Overseas Citizenship” 25 which the<br />

Court found “distinctly does not confer the<br />

rights or privileges of a citizen as that term<br />

is generally understood”. 26<br />

The Court subsequently held in Re Nash<br />

[No 2] 27 that Hollie Hughes, who would<br />

have been elected as a Senator on the<br />

special recount of papers held as a result<br />

of the ineligibility of Fiona Nash, was also<br />

ineligible, this time under s 44(iv). One<br />

year after she was not elected, Hughes<br />

was appointed a part-time member of the<br />

Administrative Appeals Tribunal. Thus,<br />

from 1 July to 27 October, 2017 (when she<br />

resigned, within one hour of the Court’s<br />

ruling that Nash was ineligible), Hughes<br />

held an “‘office of profit under the Crown’<br />

within the meaning of s 44(iv)”. 28 The issue<br />

before the Court was when the process of<br />

“being chosen” (within the meaning of<br />

s 44) concluded, which would determine<br />

whether Hughes’ position at the Tribunal<br />

resulted in her ineligibility.<br />

In Re Canavan, the Court had concluded<br />

that the process commenced at the date of<br />

nomination. 29 In Re Culleton (No 2), Kiefel,<br />

Bell, Gageler and Keane JJ wrote that the<br />

process continued “until the return of the<br />

writs for the election, as that is the time at<br />

which the electoral process is complete”. 30<br />

Re Nash [No 2] clarified that this statement<br />

must refer to a valid return of the writs,<br />

and that the process of “being chosen”<br />

will “remain constitutionally incomplete<br />

until” it results “in the determination as<br />

elected of a person who is qualified to be<br />

chosen and not disqualified from being<br />

chosen”. 31 Accordingly, as the process of<br />

“being chosen” had not been completed,<br />

Hughes’ enjoyment of an “office of profit<br />

under the Crown” (more than a year after<br />

the election) rendered her ineligible to be<br />

elected in the special count. The Court<br />

added, “[l]est it might seem harsh or unduly<br />

technical,” that Hughes’ acceptance of<br />

a position at the Administrative Appeals<br />

Tribunal:<br />

“was a voluntary step which she took<br />

in circumstances where reference by<br />

the Senate to the Court of Disputed<br />

Returns of a question concerning<br />

whether a vacancy existed in the<br />

representation of New South Wales<br />

in the Senate by reason of the<br />

disqualification or lack of qualification<br />

of a senator who had been returned<br />

as elected was always a possibility. By<br />

choosing to accept the appointment<br />

for the future, Ms Hughes forfeited<br />

the opportunity to benefit in the future<br />

from any special count of the ballot<br />

papers that might be directed as a result<br />

of such a vacancy being found.” 32<br />

The Court’s attempt to demonstrate<br />

that this result was not harsh or unduly<br />

technical is not especially convincing.<br />

Its reasons for rejecting the submissions<br />

of the Commonwealth and Hughes<br />

that the process of “being chosen”<br />

concludes on polling day drew on several<br />

unsatisfactory results that such an<br />

interpretation would have. 33 More than<br />

this, however, the fundamental reason for<br />

the Court’s decision that the process of<br />

“being chosen” was so extensive lies in its<br />

acceptance of the point made in Vardon<br />

v O’Loghlin in 1907 that: “The election is<br />

Former Nationals deputy leader Fiona Nash<br />

either valid or invalid. If invalid … the case<br />

is to be treated for all purposes, so far as<br />

regards the mode of filling the vacancy,<br />

as if the first election had never been<br />

completed”. 34 So, the Senate election in<br />

New South Wales which commenced at<br />

the close of nominations on 9 June, 2016<br />

(following dissolution of both Houses<br />

of the Parliament on 9 May, 2016), and<br />

reached its zenith on polling day on 2 July,<br />

2016, continued at least until Gageler J<br />

declared that Jim Molan had been elected<br />

as a Senator on 22 December, 2017. 35<br />

The big question that must now be<br />

confronted is whether s 44 of the<br />

Australian Constitution should be<br />

amended – with all the difficulties a<br />

constitutional referendum entails – and/<br />

or whether other steps should be taken to<br />

deal with issues of eligibility? Answering<br />

this question must be left for another<br />

day. What this note has shown is that<br />

the High Court, in its decisions on s 44<br />

in 2017, has demonstrated that it will<br />

interpret the provision strictly as it stands.<br />

If s 44 has become inappropriate in the<br />

modern globalised world, or if it reflects<br />

a legitimate concern but deals with it in a<br />

manner no longer thought ideal, the High<br />

Court has made clear that responding to<br />

any need for change is a matter for<br />

the Parliament and, ultimately, the<br />

Australian people.<br />

Matthew Stubbs is an Associate Professor at<br />

Adelaide Law School, Editor in Chief of the<br />

Adelaide Law Review and Chair of the Society’s<br />

Human Rights Committee.<br />

Adam <strong>Web</strong>ster is a Departmental Lecturer<br />

in Law and Public Policy at the University of<br />

Oxford’s Blavatnik School of Government. B<br />

8<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


POLITICS AND THE LAW<br />

Endnotes<br />

1 David Fickling, ‘The World’s Most Ridiculous<br />

Constitutional Crisis’ (Bloomberg) .<br />

2 See, eg, Sykes v Cleary (1992) 176 CLR 77; Free v<br />

Kelly (No 2) (1996) 185 CLR 296; Sue v Hill (1999)<br />

199 CLR 462. See generally Matthew Stubbs<br />

(ed), Jack Richardson, Australia’s Constitutional<br />

Government (LexisNexis, 2016) 78-81.<br />

3 Rodney Culleton (Re Culleton [No 2] (2017) 341<br />

ALR 1); Robert Day (Re Day [No 2] [2017] HCA<br />

14); Barnaby Joyce, Scott Ludlam, Larissa Waters,<br />

Malcolm Roberts, and Fiona Nash (Re Canavan<br />

[2017] HCA 45); and Hollie Hughes (Re Nash [No<br />

2] [2017] HCA 52).<br />

4 Stephen Parry, Jackie Lambie and Skye<br />

Kakoschke-Moore (Re Parry [2017] HCATrans<br />

254 (8 December 2017)).<br />

5 R v Boston (1923) 33 CLR 386, 400 (Isaacs and<br />

Rich JJ) (emphasis in original); cited in Re Day<br />

[No 2] [2017] HCA 14, [49] (Kiefel CJ, Bell and<br />

Edelman JJ), [179] (Keane J), [269] (Nettle and<br />

Gordon JJ).<br />

6 Associate Professor Stubbs examined these<br />

decisions in an article in the July 2017 edition of<br />

the Bulletin.<br />

7 Re Canavan [2017] HCA 45, [13] (Kiefel CJ, Bell,<br />

Gageler, Keane, Nettle, Gordon and Edelman JJ).<br />

8 Ibid [14], [16].<br />

9 Ibid [17].<br />

10 Ibid [13].<br />

11 (1992) 176 CLR 77, 127.<br />

12 Re Canavan [2017] HCA 45, [20]-[23].<br />

13 Ibid [61].<br />

14 Ibid [24], quoting Sykes v Cleary (1992) 176 CLR<br />

77, 107 (Mason CJ, Toohey and McHugh JJ).<br />

15 Re Canavan [2017] HCA 45, [25].<br />

16 Ibid [26], quoting Sykes v Cleary (1992) 176 CLR<br />

77, 109-10 (Brennan J).<br />

17 Re Canavan [2017] HCA 45, [35].<br />

18 Ibid [48].<br />

19 Ibid [54].<br />

20 Ibid [60].<br />

21 Ibid [37].<br />

22 Convention on Certain Questions Relating to the Conflict<br />

of Nationality Law, 179 LNTS 89 (entered into<br />

force 1 July 1937) art 1.<br />

23 Re Canavan [2017] HCA 45, [72] (emphasis<br />

added). Examples of potentially unreasonable<br />

requirements are given at [69].<br />

24 Ibid [86].<br />

25 British Nationality Act 1981 (UK) s 26.<br />

26 Re Canavan [2017] HCA 45, [134].<br />

27 [2017] HCA 52.<br />

28 Ibid [9] (Kiefel CJ, Bell, Gageler, Keane and<br />

Edelman JJ).<br />

29 Re Canavan [2017] HCA 45, [3].<br />

30 [2017] HCA 4, [13].<br />

31 Re Nash (No 2) [2017] HCA 52, [39]<br />

32 Ibid [45].<br />

33 Ibid [21]-[43].<br />

34 Vardon v O’Loghlin (1907) 5 CLR 201, 208-09<br />

(Griffith CJ, Barton and Higgins JJ).<br />

35 Re Nash [2017] HCATrans 272.<br />

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POR066


POLITICS AND THE LAW<br />

Protest and Political Communication<br />

after Brown v Tasmania<br />

PROF MARY HEATH, DEAN (EDUCATION), COLLEGE OF BUSINESS, GOOVERNMENT & LAW, FLINDERS UNIVERSITY,<br />

& DR PETER BURDON, ASSOCIATE PROFESSOR, ADELAIDE LAW SCHOOL<br />

personal right to political<br />

A communication has never been a<br />

vibrant part of Australian law. In the<br />

absence of a Bill of Rights or other<br />

express legislative protection, those wishing<br />

to assert such a right have creatively argued<br />

for the existence of an implied right<br />

in the Constitution. In Ansett Transport<br />

Industries (Operations) Pty Ltd v Commonwealth<br />

(1977) 139 CLR 54 [13] Justice Lionel<br />

Murphy argued that our system of<br />

representative government required<br />

“freedom of movement, speech and other<br />

communication, not only between the<br />

States, but in and between every part of<br />

the Commonwealth [13]”.<br />

Murphy’s argument was debated and<br />

adapted over the next 20 years. However,<br />

in Lange v Australian Broadcasting Corporation<br />

(1997) 189 CLR 520 the High Court<br />

unanimously affirmed the implied freedom<br />

of political communication. To determine<br />

whether a piece of legislation contravened<br />

the implied freedom, the High Court<br />

developed a test (the Lange test) which<br />

was refined most recently in McCloy v New<br />

South Wales [2015] HCA 34. The test poses<br />

three questions.<br />

1. Is the freedom burdened? Is political<br />

communication deterred or limited by<br />

the Act? (“burden”)<br />

2. Is the purpose of the Act compatible<br />

with the maintenance of responsible,<br />

representative government?<br />

(“justification”)<br />

3. Is the burden the Act imposes<br />

proportionate to the purpose the<br />

legislation seeks to achieve? Is there<br />

a realistic way of achieving that<br />

purpose with less restriction of the<br />

freedom of political communication?<br />

(“proportionality”) 1<br />

This was the legal position when the state<br />

of Tasmania introduced The Workplaces<br />

(Protection from Protesters) Act in 2014. The<br />

legislation specifically targeted protest,<br />

defined in s 4 to include any activity<br />

promoting “awareness of or support for<br />

… an opinion, or belief, in respect of a<br />

political, environmental, social, cultural or<br />

economic issue” taking place on business<br />

premises. The very broad s 5 definition<br />

of “business premises” included publicly<br />

owned land, such as “business access<br />

areas” and mining and forestry sites. The<br />

new laws dramatically increased penalties<br />

for conduct which was already penalised<br />

by the general criminal law. For example,<br />

under s 8, protesters who failed to “move<br />

on” from a business premises after a lawful<br />

direction faced a $10,000 fine.<br />

The Act was immediately controversial.<br />

While the Tasmanian government<br />

announced that it would “[n]o longer …<br />

tolerate the extremists”, 2 rapporteurs from<br />

the United Nations argued that the Act<br />

“would contravene Australia’s…obligations<br />

under international human rights law”. 3<br />

The stage was set for a challenge. In<br />

January, 2016, Bob Brown and Jessica<br />

Hoyt were arrested while protesting in<br />

the Lapoinya State Forest. Brown was<br />

charged with refusing a police order<br />

to leave a “business access area” while<br />

Hoyt was charged with returning to a<br />

“business premises” after being ordered<br />

to leave. Although the charges against<br />

Brown and Hoyt were dropped, they went<br />

to the High court to argue that the Act<br />

unconstitutionally restricted freedom of<br />

political communication. The Tasmanian<br />

government was joined by the Federal<br />

Government and several states to fight the<br />

challenge.<br />

After two days of argument and five<br />

months of deliberation, the majority of<br />

the High Court (Kiefel CJ, Bell and Keane<br />

JJ, Gageler J, Nettle J) found that sections<br />

of The Workplaces (Protection from Protesters)<br />

Act were unconstitutional. Gordon J took<br />

a more restrictive approach, holding that<br />

only s 8 of the Act was invalid. Edelman<br />

J up held the validity of the Act. We will<br />

focus on the joint judgement of Kiefel CJ,<br />

Bell and Keane JJ and their application of<br />

the Lange test.<br />

First, the justices considered whether<br />

freedom of political communication was<br />

burdened by the Act. In doing so, they<br />

focused on the vagueness of terms like<br />

“business premises” and “business access<br />

area” and noted that it would be very<br />

difficult for protesters and police alike<br />

to tell with certainty when an individual<br />

was in breach of the legislation. Indeed,<br />

it was uncertainty over this very point<br />

that led Tasmanian police to drop the<br />

charges against Brown and Hoyt. The<br />

justices argued:<br />

The point to be made is not that prosecutions<br />

of charges made under the Protesters Act are<br />

unlikely to succeed, if they do proceed. It is<br />

that the difficulty associated with identifying the<br />

area to which the Protesters Act applies in a<br />

given circumstance is likely to result in errors<br />

being made….The result will be that some<br />

lawful protests will be prevented or discontinued<br />

and protesters will be deterred from further<br />

protesting [77].<br />

The plurality found that this impact<br />

“burdened” political communication within<br />

the meaning of the Lange test. They then<br />

found that the Act could be justified by a<br />

legitimate purpose – namely the “protection<br />

of businesses and their operations, here<br />

forest operations, from damage and<br />

disruption from protesters who are engaged<br />

in particular kinds of protests [101]”.<br />

Further, Tasmania was entitled to burden<br />

the freedom of political communication in<br />

its efforts to achieve a legitimate purpose.<br />

However, under Lange, any burden must<br />

be reasonably proportionate to the purpose<br />

of the legislation. The justices held that<br />

provisions prohibiting protesters from<br />

returning to a business area for four days<br />

after a direction and provisions excluding<br />

“whole groups of persons” [136] were not<br />

consistent with the Act’s stated purpose.<br />

Rather, the Court held: “[t]he inference<br />

to be drawn is that [the Act] is directed<br />

solely to the purpose of deterring<br />

protesters [135]”.<br />

10<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


POLITICS AND THE LAW<br />

In determining whether the proportionality<br />

test was satisfied, the court applied a test<br />

of necessity, asking “whether there are<br />

alternative, reasonably practicable, means<br />

of achieving the same object but which<br />

have a less restrictive effect on the freedom<br />

[139]”. To answer this question, they<br />

compared the Act with similar legislation<br />

such as the Forest Management Act 2013.<br />

They concluded that the Act had a much<br />

wider operation and created “substantial<br />

deterrent effects” by:<br />

extending the areas of its operation, creating<br />

further consequences for non-compliance with<br />

directions including special offences and heavy<br />

penalties. More importantly they are achieved<br />

by the uncertainty which surrounds the areas<br />

within which the Act applies [144].<br />

In conclusion, the justices argued that<br />

the legislation “is likely to deter protest<br />

of all kinds and that is too high a cost to<br />

the freedom given the limited purpose of<br />

the Protesters Act [145]”. The Act placed<br />

a “significant burden on the freedom of<br />

political communication [152]” going<br />

beyond what was reasonably necessary<br />

to achieve its purpose. That burden was<br />

unjustified and disproportionate, and so<br />

the majority found that the legislation<br />

“cannot be considered as compatible, in<br />

the sense described in Lange [152]”.<br />

This decision represents the first time<br />

the High Court has tested the strength<br />

of the implied freedom of political<br />

communication in the context of nonviolent<br />

protest and freedom of assembly.<br />

In the aftermath of the decision, Bob<br />

Brown praised the High Court for<br />

“defend[ing] the time-honoured rights<br />

of all Australians” 4 while Hoyt stated<br />

that “nobody should be arrested for<br />

peacefully protesting for what they believe<br />

in”. 5 Further, as John Eldridge and Tim<br />

Matthews have argued, the High Court<br />

has recognised that the “physical space<br />

in which a protest occurs is inextricably<br />

tied up with that protest’s communicative<br />

function”. 6 For example, a protest outside<br />

of a forestry building or on a clearing site<br />

has the potential to communicate a much<br />

more powerful political message than a<br />

similar action that is forced to the side of<br />

a road. In these instances, Eldridge and<br />

Matthews argue, it is “necessary to ask<br />

whether the law strikes the right balance<br />

Bob Brown at a climate emergency rally in Melbourne. Photo: Peter Campbell.<br />

in permitting or proscribing protest in the<br />

particular places or spaces which protestors<br />

seek to utilize”. 7<br />

The decision in Brown v Tasmania may<br />

lead to challenges against anti-protest<br />

laws proposed or enacted in other states.<br />

Following the High Court decision, the<br />

Western Australian Attorney-General<br />

Michael Mischin has delayed reintroducing<br />

the Criminal Code Amendment (Prevention of<br />

Lawful Activity) Bill 2015, which has been<br />

condemned by United Nations rapporteurs<br />

as “criminalising lawful protests and<br />

silencing environmentalists and human<br />

rights defenders”. 8 Moreover, the NSW<br />

Attorney-General Mark Speakman<br />

sought advice from the Solicitor-General<br />

concerning The Inclosed Lands, Crimes and<br />

Law Enforcement Legislation Amendment<br />

(Interference) Bill 2016 which expands<br />

police powers and significantly increases<br />

penalties for protesters. A challenge to<br />

this legislation would have immediate<br />

implications for three protesters facing<br />

14 years in jail for peacefully blocking<br />

access to a road and locking onto mining<br />

equipment at the Wilpinjong Coal Mine. 9<br />

The right to protest is certainly under<br />

pressure from increasingly repressive laws<br />

specifically aimed at environmentalists.<br />

However, it is also under pressure from the<br />

privatisation of previously public spaces;<br />

restrictions on NGOs engaged in advocacy;<br />

escalating levels of online, electronic and<br />

visual surveillance and intransigence in<br />

the face of criticism from human rights<br />

monitors including the United Nations.<br />

The decision in Brown v Tasmania comes<br />

as a welcome, if limited, acknowledgment<br />

of the importance of protest to effective<br />

and constitutional government and civic<br />

life in Australia. B<br />

Endnotes<br />

1 See further Tony Blackshield, ‘Green in<br />

Judgement’ Inside Story, 26 October 2017<br />

insidestory.org.au/green-in-judgement/.<br />

2 Ben Hagemann, ‘“Radical” Protesters Face Fines<br />

and Jail Time in Tasmania’ Australian Mining, 18<br />

November 2014, http://austmining.pcmcloud.<br />

com.au/news/radical-protesters-face-fines-andjail-time-in-tasmania-2/.<br />

3 Michel Forst, ‘End of Mission Statement’ 18<br />

October 2016, http://apo.org.au/files/relatedcontent-files/2016-10-18_australia_sr-hrdstatement-final-3.pdf.<br />

4 ABC News, ‘Bob Brown wins High Court case<br />

against Tasmanian Protest Laws’ ABC News<br />

Online, 18 October 2017 <br />

5 Ibid.<br />

6 John Eldridge and Tim Matthews, ‘The Right<br />

to Protest after Brown v Tasmania’ AusPubLaw<br />

Blog, 2 November 2017 .<br />

7 Ibid.<br />

8 Human Rights Law Centre, ‘UN Rights Experts<br />

Urge Western Australia to Abandon Proposed<br />

Anti-protest Laws’ 16 <strong>February</strong> 2016 https://<br />

www.hrlc.org.au/news/un-rights-experts-urgewestern-australia-to-abandon-proposed-antiprotest-laws.<br />

9 Sean Nicholls and Michael Koziol, ‘Call to Scrap<br />

NSW Anti-protest Laws After High Court<br />

decision’ Sydney Morning Herald, 19 October 2017<br />

http://www.smh.com.au/nsw/call-to-scrap-<br />

nsw-antiprotest-laws-after-high-court-decision-<br />

20171018-gz3g7e.html.<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 11


POLITICS AND THE LAW<br />

Parliamentary Prayer and the<br />

Establishment of Religion<br />

PAUL BABIE, PROFESSOR OF LAW, ADELAIDE LAW SCHOOL<br />

Greece, an otherwise unexceptional<br />

town of just over 90,000 people in<br />

Monroe County, New York State, gained<br />

national attention in 2014. Its longstanding<br />

practice of asking a volunteer<br />

chaplain to invoke a prayer to open the<br />

legislative sessions of its Town Council<br />

triggered a challenge on the basis that<br />

doing so violated the establishment clause<br />

of the First Amendment to the United<br />

States Constitution: “Congress shall make<br />

no law respecting an establishment of<br />

religion”. In Town of Greece v Galloway, 1 the<br />

United States Supreme Court confirmed<br />

the well-established principle that such<br />

legislative prayers constituted no violation<br />

of the establishment clause, whether at<br />

a meeting of a Town Council, a State<br />

Legislature 2 or the United States Congress<br />

itself. 3<br />

While the story of Greece, New York,<br />

may seem thoroughly uninteresting to<br />

Australians, it does answer a question<br />

that could be asked here. It is a littleknown<br />

fact that such prayers, typically<br />

referred to as parliamentary prayer, are<br />

the norm in every Parliament in Australia,<br />

Commonwealth, State, and Territory. 4<br />

The Australian Constitution, s 116, contains<br />

a provision similar in its terms to the<br />

American establishment clause: “The<br />

Commonwealth shall not make any law<br />

for establishing any religion”. It also goes<br />

further than its American counterpart,<br />

by prohibiting a Commonwealth law “for<br />

imposing any religious observance,” and<br />

providing that “no religious test shall be<br />

required as a qualification for any office or<br />

public trust under the Commonwealth.”<br />

The question arises, then, do such<br />

prayers violate the guarantees contained<br />

in s 116? This brief essay considers<br />

that question in three parts. Part II sets<br />

out the typical parliamentary prayers<br />

currently used in the Commonwealth,<br />

State, and Territory Parliaments. Part III<br />

considers s 116; drawing upon the existing<br />

Australian jurisprudence, with support<br />

from American precedent, I conclude that<br />

while such prayers may not constitute an<br />

establishment of religion, they may impose<br />

a religious observance and may establish<br />

a religious test for qualification for a<br />

Commonwealth office. Part IV concludes.<br />

PARLIAMENTARY PRAYER<br />

The English Parliament’s tradition of<br />

daily prayer is thought to have begun in<br />

about 1558, and to have become common<br />

practice by about 1567. 5 No doubt drawing<br />

upon this tradition, parliamentary prayer<br />

forms an integral part of the pre-federation<br />

and federal democratic history of<br />

Australia. 6 The agenda of the Australasian<br />

Federal Convention of 1897-98 (“the<br />

Convention”) dealt with a proposal for<br />

a standing order that “the daily session<br />

of the Upper and Lower Houses of the<br />

Federal Parliament be opened with prayer<br />

by the President and Speaker, or by a<br />

chaplain”. 7<br />

Post-federation, vigorous campaigns by<br />

the leading churches and trenchant clerical<br />

advocacy ultimately prevailed, ensuring<br />

prayer was used for the inauguration of<br />

the Commonwealth on 1 January, 1901 8<br />

and, on the authority of a Standing Order,<br />

for the opening of the first Parliament<br />

on 9 May, 1901. 9 The Commonwealth<br />

Parliamentary practice of opening prayers<br />

has continued ever since. The House of<br />

Representatives Standing Orders (Cth) O 38<br />

provides that:<br />

The Speaker shall then read the following prayers:<br />

Almighty God, we humbly beseech Thee to<br />

vouchsafe Thy blessing upon this Parliament.<br />

Direct and prosper our deliberations to the<br />

advancement of Thy glory, and the true welfare<br />

of the people of Australia.<br />

Our Father, which art in Heaven: Hallowed<br />

be Thy Name. Thy Kingdom come. Thy will<br />

be done in earth, as it is in Heaven. Give us<br />

this day our daily bread. And forgive us our<br />

trespasses, as we forgive them that trespass<br />

against us. And lead us not into temptation;<br />

but deliver us from evil: For Thine is the<br />

kingdom, and the power, and the glory, for ever<br />

and ever. Amen.<br />

The first of these prayers mirrors almost<br />

precisely that composed for the opening of<br />

the first Parliament in 1901. 10 The Standing<br />

Orders of the Australian Senate (Cth) O 50<br />

make similar provision for the Senate,<br />

and Standing Orders in every State and<br />

Territory operate to the same effect as those<br />

found in the Commonwealth Parliament. 11<br />

Do these Standing Orders providing for<br />

parliamentary prayer violate s 116, either<br />

for the Commonwealth or for a State or<br />

Territory? I turn now to that question.<br />

SECTION 116<br />

The Commonwealth<br />

Australia has never had an established<br />

church; neither has it had a strict wall of<br />

separation between church and state. The<br />

modern relationship between church and<br />

state can be traced to the Convention,<br />

during which the framers settled upon the<br />

Preamble to the Constitution:<br />

WHEREAS the people of New South<br />

Wales, Victoria, South Australia, Queensland,<br />

and Tasmania, humbly relying on<br />

the blessing of Almighty God, have<br />

agreed to unite in one indissoluble Federal<br />

Commonwealth under the Crown of the United<br />

Kingdom of Great Britain and Ireland, and<br />

under the Constitution hereby established<br />

It was thought that the emphasised words<br />

might establish a Commonwealth power to<br />

legislate with respect to the establishment<br />

of a religion or the infringement of the<br />

free exercise thereof. To prevent this,<br />

the framers inserted s 116. 12 However<br />

the experience since federation has<br />

been one of fruitful interaction and<br />

cooperation between religion and state, 13<br />

with the outcome more “semi-permeable<br />

membrane” 14 or “imaginary wall” 15 than<br />

impenetrable barrier.<br />

Given the historic relationship between<br />

church and state, it ought to come as no<br />

surprise that the Australian judiciary has<br />

seen little need to address the nature of the<br />

wall constructed by s 116. Indeed, in the<br />

entire federal history of Australia, the High<br />

Court has considered the establishment<br />

12<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


POLITICS AND THE LAW<br />

guarantee but once, in Attorney-General (Vic);<br />

Ex rel Black v Commonwealth (DOGS Case). 16<br />

In that case, the Defence of Government<br />

Schools organisation challenged<br />

Commonwealth funding of religiouslyaffiliated<br />

private State schools. In upholding<br />

the constitutionality of such funding, the<br />

High Court concluded that s 116 operates<br />

as a limitation on Commonwealth (and<br />

possibly Territory 17 ) legislative power. 18 Chief<br />

Justice Barwick wrote that:<br />

establishing a religion involves the entrenchment<br />

of a religion as a feature of and identifi ed<br />

with the body politic, in this instance, the<br />

Commonwealth. It involves the identifi cation<br />

of the religion with the civil authority so as<br />

to involve the citizen in a duty to maintain<br />

it and the obligation of, in this case, the<br />

Commonwealth to patronize, protect and<br />

promote the established religion. In other words,<br />

establishing a religion involves its adoption as<br />

an institution of the Commonwealth, part of<br />

the Commonwealth “establishment”. 19<br />

Thus, the establishment guarantee<br />

prohibits only the adoption of any religion<br />

as an institution of the state 20 and not a<br />

law which merely “touches or relates to”<br />

religion. 21 We might stop at that point,<br />

concluding that on the basis of the DOGS<br />

Case the parliamentary prayer used in the<br />

House and Senate fail to establish a religion<br />

as an institution of the state.<br />

In the absence of direct Australian<br />

authority on the point, however, we might<br />

also search for further guidance in the<br />

similar wording to s 116 found in the<br />

American establishment clause. Some<br />

members of the High Court in the DOGS<br />

Case cautioned against reliance upon<br />

American interpretive approaches to the<br />

First Amendment in the interpretation of<br />

s 116. 22 Yet Murphy J, who the fullness<br />

of time has proven to be correct about<br />

so much, in both common law and<br />

constitutional interpretation, wrote that:<br />

The United States’ decisions on the<br />

establishment clause should be followed. The<br />

arguments for departing from them (based on<br />

the trifl es of differences in wording between<br />

the United States and the Australian<br />

establishment clauses) are hair-splitting, and<br />

not consistent with the broad approach which<br />

should be taken to constitutional guarantees of<br />

freedom. Even if the United States’ decisions<br />

were set aside, the considerations to which I<br />

have referred show that the same interpretation<br />

is reached by applying ordinary constitutional<br />

principles of interpretation. 23<br />

Thus, since the DOGS Case, scholars<br />

have increasingly turned to American<br />

approaches as aids in interpreting the<br />

Australian Constitution generally and in<br />

respect of s 116 specifically. 24 That is why<br />

the town of Greece matters for Australia:<br />

in the absence of direct domestic authority,<br />

Town of Greece provides guidance as to<br />

the use of the establishment guarantee<br />

as concerns parliamentary prayer. There<br />

Kennedy J wrote that<br />

the Establishment Clause must be interpreted<br />

“by reference to historical practices and<br />

understandings.”… That the First Congress<br />

provided for the appointment of chaplains<br />

only days after approving language for the<br />

First Amendment demonstrates that the<br />

Framers considered legislative prayer a benign


POLITICS AND THE LAW<br />

acknowledgment of religion’s role in society….<br />

Marsh stands for the proposition that it is not<br />

necessary to define the precise boundary of<br />

the Establishment Clause where history shows<br />

that the specific practice is permitted. Any<br />

test the Court adopts must acknowledge a<br />

practice that was accepted by the Framers and<br />

has withstood the critical scrutiny of time and<br />

political change…. 25<br />

Having reviewed the history and<br />

practices in the Australian colonies at<br />

the time of the Convention, Ely writes<br />

that “associating religion with the new<br />

Commonwealth did not offend the<br />

community at large.” 26 Significantly, it<br />

was noted, when the matter was brought<br />

before the first Senate, that “[s]ection<br />

116 began, ‘the Commonwealth shall not<br />

make any law…”, [Sir Frederick Sargood]<br />

commented, “A standing order is not a<br />

law.” 27 And Ely concludes that:<br />

the prayer question at last was settled. As<br />

the Sydney Morning Herald editorial of 8<br />

June remarked, such prayers would provide<br />

a ‘regular expression of the statement in the<br />

preamble…that we as a people “humbly rely<br />

on the blessing of Almighty God”.’ However,<br />

as the debates themselves had made clear, the<br />

religion of the federal parliament would be<br />

undogmatic, unsectarian and unsacerdotal. A<br />

door had been opened, slightly, to religion, but<br />

not to the churches. 28<br />

Whether because a Standing Order<br />

eludes the reach of s 116, or because it<br />

was accepted at the time of federation<br />

that such associations of religion with<br />

the Commonwealth were unproblematic,<br />

historical practices and understandings<br />

suggest that Commonwealth parliamentary<br />

prayer may not violate the establishment<br />

guarantee of s 116.<br />

However, while it may not establish a<br />

religion, it is possible that Commonwealth<br />

parliamentary prayer may violate those<br />

guarantees contained in s 116 against<br />

imposing a religious observance and<br />

against setting a religious test an office<br />

under the Commonwealth. While neither<br />

of those guarantees has been judicially<br />

interpreted, Luke Beck writes that:<br />

Prayers are a type of a religious observance,<br />

and it is compulsory for the president [of the<br />

Senate] and the speaker [of the House of<br />

Representatives] to recite the parliamentary<br />

prayers. This also affects everyone else in the<br />

chambers and public galleries. 29<br />

Similarly, in respect of a religious test for<br />

public office:<br />

The standing orders make it the job of the<br />

president and the speaker to participate in<br />

religious activities. A person has to be willing to<br />

participate in particular religious activities if they<br />

want to take on either role. This looks rather<br />

like a religious test for a federal public office. 30<br />

As such, Commonwealth parliamentary<br />

prayer, while potentially capable of passing<br />

Constitutional muster as concerns, the<br />

establishment guarantee may nonetheless<br />

violate the guarantees against the imposition<br />

of a religious observance, at least in respect<br />

of the relevant members of the Senate and<br />

House of Representatives and the public<br />

who are present for the recitation of the<br />

prayers, and against a religious test upon the<br />

office of president and speaker.<br />

The States and Territories<br />

What of the States and Territories? Its<br />

placement in Chapter V of the Australian<br />

Constitution, which deals with the States, and<br />

the Convention debates about its terms<br />

demonstrate that the prohibition of s 116<br />

was originally intended to extend to the<br />

States. 31 However the express terms of<br />

its final form, and its subsequent judicial<br />

and academic treatment are clear: s 116<br />

does not apply to the States, although it<br />

may to the Territories. A number of postfederation<br />

attempts expressly to extend<br />

the application of s 116 to the States and<br />

Territories have each failed. 32 Consequently,<br />

it seems clear that nothing in the<br />

guarantees enumerated in s 116 prevents<br />

the States (and possibly the Territories)<br />

from legislating so as to establish religion<br />

as an institution of the state, or to impose<br />

a religious observance or test for a State or<br />

Territory office.<br />

But what if s 116 did apply to the<br />

States (and expressly to the Territories)?<br />

My conclusions with respect to the<br />

Commonwealth would almost certainly<br />

be the same. In short, the current<br />

parliamentary prayer used in every State<br />

and Territory may not constitute an<br />

establishment of religion violative of s 116.<br />

Historical conditions and practices provide<br />

some support for this conclusion; Ely<br />

writes that:<br />

…practices regarding prayers in the colonial<br />

legislatures differed considerably. The New<br />

South Wales, Tasmanian and South<br />

Australian legislatures and the Victorian<br />

Legislative Assembly did not have prayers<br />

at all. The Victorian Legislative Council<br />

opened its sessions with the Lord’s Prayer.<br />

The Queensland and Western Australian<br />

legislatures used prayers based on the Book of<br />

Common Prayer. 33<br />

Since colonial times, the practice<br />

has expanded such that it has become<br />

the common practice in every State<br />

and Territory to use some form of<br />

parliamentary prayer. 34 On the basis of<br />

colonial and post-federation practice and<br />

understandings in the States, therefore,<br />

even if s 116 did apply to them, the use of<br />

the parliamentary prayer used today may<br />

not constitute an establishment of religion<br />

violative of the establishment guarantee.<br />

They may, though, constitute the imposition<br />

of a religious observance and of a religious<br />

test for holding a State or Territory office.<br />

CONCLUSION<br />

Commonwealth parliamentary prayer may<br />

not constitute an establishment of religion<br />

violative of the establishment guarantee of<br />

s 116 of the Constitution; it may, however<br />

violate the guarantees against imposition of<br />

a religious observance and against a religious<br />

test for a Commonwealth office. Because<br />

s 116, in its express terms, does not apply<br />

to the States and Territories, no probation<br />

exists against parliamentary prayers in those<br />

jurisdictions. If s 116 did apply, however,<br />

the conclusions reached in respect of the<br />

Commonwealth would be the same. B<br />

Endnotes<br />

1 Town of Greece v Galloway (‘Town of Greece’), 572<br />

US ___ (2014) (references herein are to the slip<br />

opinion).<br />

2 While the First Amendment originally applied only<br />

to the federal government of the United States, the<br />

Supreme Court has extended, or incorporated its<br />

protection against the states through the operation<br />

of the Fourteenth Amendment: see Everson v Board<br />

of Education, 330 US 1 (1947).<br />

3 Town of Greece, above n 1, 6-18 (Kennedy J), citing<br />

Marsh v Chambers (Marsh), 463 US 783 (1983); County<br />

of Allegheny v American Civil Liberties Union, Greater<br />

Pittsburgh Chapter (County of Allegheny) 492 US 573<br />

(1989). See also ‘Establishment Clause: Town of<br />

Greece v. Galloway’ (2014) 128 Harvard Law Review 191.<br />

But see Town of Greece, 1-25 (Kagan J, dissenting).<br />

And see the view expressed in Canada: Mouvement<br />

laïque québécois v Saguenay (City) [2015] 2 SCR 3; Freitag<br />

v Penetanguishene (Town) (1999) 47 OR (3d) 301.<br />

4 See Ian Hunter, ‘Parliament and Prayer’ (2010) 26<br />

Flinders Journal of History and Politics 27.<br />

5 Ibid 30.<br />

6 Richard Ely, Unto God and Caesar: Religious Issues in<br />

the Emerging Commonwealth 1891-1906 (Melbourne<br />

University Press, 1976) 117-24.<br />

14<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


POLITICS AND THE LAW<br />

7 Ibid 111-2, 117-24.<br />

8 Ibid 111-2.<br />

9 Ibid 117-24; Hunter, above n 4, 29-30.<br />

10 See Ely, above n 6, 123.<br />

11 See New South Wales: Parliament of New South<br />

Wales Legislative Assembly Standing Orders (NSW) O<br />

39, Standing Rules and Orders of the Legislative Council<br />

(NSW) O 28; Victoria: Legislative Assembly of Victoria<br />

Standing Orders (Vic) O 55(1)(a), O 232(4)(e)(v),<br />

Legislative Council of Victoria Standing Orders (Vic) O<br />

4.02, O 1.01(10), O 1.07(5), O 4.05(1); Tasmania:<br />

House of Assembly Standing & Sessional Orders and<br />

Rules (Tas) O 22, Standing Orders Legislative Council<br />

(Tas) O 28; Queensland: Standing Rules and Orders<br />

of the Legislative Assembly (Qld) ch 11 and O 45(2)<br />

(a); South Australia: Standing Orders of the House of<br />

Assembly (SA) O 39, Standing Orders of the Legislative<br />

Council (SA) O 51; Western Australia: Standing Orders<br />

of the Legislative Assembly of the Parliament of Western<br />

Australia (WA) O 58, Western Australia Legislative<br />

Council Standing Orders (WA) O 14(1)(a); Australian<br />

Capital Territory: Legislative Assembly for the Australian<br />

Capital Territory Standing Orders and Continuing<br />

Resolutions of the Assembly (ACT) O 30; Northern<br />

Territory: Legislative Assembly of the Northern Territory<br />

Standing Orders (NT) O 7, Legislative Assembly of the<br />

Norther Territory Thirteenth Assembly Sessional Orders<br />

(NT) O 6.<br />

12 See Tom Frame, Church and State: Australia’s<br />

Imaginary Wall (UNSW Press, 2006) 48-52; Joshua<br />

Puls, ‘The Wall of Separation: Section 116, The<br />

First Amendment and Constitutional Religious<br />

Guarantees’ (1998) 26 Federal Law Review 151. The<br />

seminal history of s 116 is Ely, above n 6.<br />

13 Frame, above n 12, 7-9.<br />

14 Peter J M MacFarlane and Simon Fisher, Churches,<br />

Clergy and the Law (The Federation Press, 1996)<br />

32, who note that ‘metaphorically, the flow of<br />

Commonwealth largesse to religious institutions is<br />

permitted; what is blocked is the reverse passage of<br />

religious entanglement with Commonwealth affairs<br />

(adapting a metaphor from Lemon v Kurtzman 403<br />

US 602 (1971) 613)).’<br />

15 Frame, above n 12, generally.<br />

16 Attorney-General (Vic); Ex rel Black v<br />

Commonwealth (DOGS Case) (1981) 146 CLR 559.<br />

17 Uncertainty exists as to whether the<br />

Commonwealth’s law-making power in relation<br />

to the Territories means that they are subject to<br />

the constitutional freedoms; precedent suggests<br />

not: Kruger v Commonwealth (1996) 190 CLR 1,<br />

60–1 (Dawson J), 141–2 (McHugh J), 79, 85–6<br />

(Toohey J), 122–3 (Gaudron J). But see Clifford L<br />

Pannam, ‘Travelling Section 116 with a U.S. Road<br />

Map’ (1963) 4 Melbourne University Law Review 41;<br />

Jared Clements, ‘Section 116 of the Australian<br />

Constitution and the Jurisprudential Pillars of<br />

Neutrality and Action-Belief Dichotomy’ (2008)<br />

11 International Trade & Business Law Review 255,<br />

273-275.<br />

18 DOGS case, above n 16, 579–81.<br />

19 Ibid 582 (Barwick CJ); see also 604 (Gibbs J), 612<br />

(Mason J), 653 (Wilson J).<br />

20 Ibid 582 (Barwick CJ), 604 (Gibbs J), 612 (Mason<br />

J), 653 (Wilson J).<br />

21 Ibid 616 (Mason J).<br />

22 Ibid 599-603 (Gibbs J), 613-6 (Mason J).<br />

23 Ibid 632 (Murphy J).<br />

24 See Paul Babie, ‘National Security and the Free<br />

Exercise Guarantee of Section 116: Time for a<br />

Judicial Interpretive Update’ (2017) 45 Federal Law<br />

Review 351, 364-6.<br />

25 Town of Greece, above n 1, 7-8 (Kennedy J), citing<br />

Marsh, above n 3, and County of Allegheny, above n 3<br />

(footnotes omitted and emphasis added).<br />

26 Ely, above n 6, 117.<br />

27 Ibid 124, citing Commonwealth Parliamentary Debates,<br />

Volume 1, 1138-9.<br />

28 Ely, above n 6, 124.<br />

29 Luke Beck, ‘Official prayers in federal parliament<br />

are divisive and unconstitutional, and should<br />

be scrapped’, The Conversation (22 August<br />

2017) .<br />

30 Ibid.<br />

31 Ely, above n 6, 60-8, and see especially 63 for<br />

the text of Henry Bourne Higgins’ version<br />

of s 116. And see House of Representatives,<br />

Joint Standing Committee on Foreign Affairs,<br />

Defence and Trade, Freedom of Religion and<br />

Belief Report (2000) , 57-8.<br />

32 Constitution Alteration Bill 1944 (Cth); Australian<br />

Constitutional Convention, 1978; Constitutional<br />

Alteration (Rights and Freedoms) Act 1988 (Cth):<br />

House of Representatives, above n 31, 58.<br />

33 Ely, above n 6, 122-3.<br />

34 See above n 11.<br />

College<br />

Tours<br />

Senior School<br />

Tuesday 27 <strong>February</strong><br />

Junior School and Ignatius Early Years<br />

Wednesday 14 March<br />

Book online at Ignatius.sa.edu.au


TOP ELECTION ISSUES<br />

LAW SOCIETY’S KEY<br />

ELECTION ISSUES<br />

With the State Election approaching on 17 March, the Law Society has released its Top 10 Election<br />

Issues. The Society has asked State political parties to respond to the submission and outline their<br />

policies to strengthen the South Australia’s justice system. Below is a summary of the Top 10 Election<br />

Issues. The full document can be accessed on the Law Society home page.<br />

1. NEW COURTS BUILDING<br />

The issue: The planned upgrades to<br />

the metropolitan Courts buildings,<br />

as budgeted for last year, is a stop-gap<br />

solution with a limited life span.<br />

The State Government needs to provide<br />

funding for an adequately funded and<br />

suitably resourced courts building to<br />

support effective delivery of justice<br />

within South Australia, according to<br />

contemporary and modern expectations<br />

and standards.<br />

KEY ASK<br />

• A commitment to the construction of a<br />

new State Courts precinct by 2023, with<br />

the <strong>2018</strong>-19 State budget to provide<br />

funding for the development of a plan.<br />

2. COURTS FUNDNG<br />

FUNDING FOR THE COURTS<br />

ADMINISTRATION AUTHORITY<br />

The issue: The Courts Administration<br />

Authority (CAA) has been forced over<br />

the past few years to reduce services due<br />

to budget cuts. The Government has also<br />

imposed higher tiered civil lodgement fees<br />

and probate fees, which are collected by<br />

the CAA but go into general revenue rather<br />

than being invested back into the courts.<br />

KEY ASKS<br />

• A significant increase in the Courts<br />

Administration Authority’s budget to<br />

enable it to operate effectively.<br />

• The establishment of an independent<br />

authority to determine a formula for the<br />

appropriate Government funding to be<br />

provided to the CAA.<br />

• Court filing fees and transcript costs<br />

to be waived for ALRM lawyers acting<br />

in State courts for indigent Aboriginal<br />

clients.<br />

• Probate fees and court fees, if to<br />

continue to be imposed, to be based on<br />

the value of the work involved.<br />

DISABILITY ACCESS IN COURTS<br />

The issue: The State’s courts infrastructures,<br />

particularly the Supreme Court building,<br />

fails to provide proper access to people with<br />

physical and cognitive disabilities.<br />

KEY ASKS<br />

• That the Courts Administration<br />

Authority is provided the resources to<br />

engage a disability access consultant to<br />

provide advice and recommendations<br />

on the courts redevelopment project.<br />

• That, in addition to the planned court<br />

upgrades, funding is allocated for the<br />

urgent upgrades of courtrooms 1 and 2<br />

of the Supreme Court to provide access<br />

for those with a disability.<br />

3. ACCESS TO JUSTICE<br />

PSYCHIATRISTS & PSYCHOLOGISTS<br />

The issue: There is a severe shortage<br />

of forensic psychological and psychiatric<br />

services for both prisoners and people<br />

facing trial.<br />

KEY ASKS<br />

• The provision of at least one additional<br />

full-time psychiatrist in the Forensic<br />

Mental Health Services Unit.<br />

• Greater investment in psychological<br />

and psychiatric assessment and<br />

treatment services for prisoners,<br />

including those on remand.<br />

• Investment in specialised services for<br />

prisoners with acquired brain injuries.<br />

• Practitioners undertaking psychological<br />

assessments of prisoners (including noncourt<br />

ordered assessments) to be granted<br />

at least two hours to assess a client.<br />

COMMUNITY LEGAL CENTRES<br />

The issue: State Government funding<br />

to Community Legal Centres has<br />

been reduced and is far lower than the<br />

contribution to CLCs compared to most<br />

other States. The State Government only<br />

contributes 22% of the total funding that<br />

goes to State CLCs.<br />

KEY ASKS<br />

• The share of funding to South<br />

Australian Community Legal Centres by<br />

the State be increased to at least 40% of<br />

the total funding for CLCs.<br />

• A commitment to an ongoing budget<br />

contribution to the core operating costs<br />

of JusticeNetSA.<br />

LEGAL AID FUNDING<br />

The issue: The Legal Services<br />

Commission is facing $10 million<br />

reduction in funding and can only afford<br />

to provide representation to clients in the<br />

bottom 8% of income earners and only<br />

for serious criminal matters or family<br />

law matters involving children. The lack<br />

of remuneration available to private<br />

practitioners affects the viability of private<br />

practitioners taking on legally aided cases.<br />

KEY ASKS<br />

• The restoration of $6 million in State<br />

Government funding for the Legal<br />

Services Commission.<br />

16<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


TOP ELECTION ISSUE<br />

• Increased funding to allow the Legal<br />

Services Commission to increase<br />

payments to the private legal profession<br />

acting in legal aid matters.<br />

• Allocation of funding to the Legal<br />

Services Commission for the provision<br />

of legal representation in civil matters.<br />

• Funding for the provision of legal<br />

representation for people subject to<br />

guardianship, medical treatment and<br />

residence orders who appear in the<br />

SACAT in first instance matters.<br />

4. FAIRER COMPENSATION<br />

CIVIL LIABILITY<br />

The issue: Since the 1990s there has been<br />

a steady erosion of the right to obtain fair<br />

compensation both at common law and<br />

under our State Workers Compensation<br />

Scheme. Recent amendments to the Civil<br />

Liability Act 1936 prevent injured people<br />

from obtaining adequate compensation,<br />

deters those who have suffered a loss as a<br />

result of the negligence of another from<br />

obtaining compensation, and is failing to<br />

act as a deterrent to those not inclined to<br />

exercise an appropriate duty of care.<br />

KEY ASK<br />

• The Parliament conduct a review of<br />

the impact of recent amendments to<br />

the Civil Liability Act 1936 in relation to<br />

the scope of liability, burden of proof,<br />

assumption of risk, negligence on the<br />

part of persons professing to have a<br />

particular skill, exclusion of liability<br />

for criminal conduct and in the area of<br />

contributory negligence.<br />

WORKERS COMPENSATION<br />

The issue: The Workers Compensation<br />

Scheme does not provide adequate<br />

recompense to most injured workers.<br />

The Society notes and generally supports<br />

the findings of the Final Report into the<br />

Referral for an Inquiry into the Return to<br />

Work Act and Scheme by the Parliamentary<br />

Committee on Occupational Safety,<br />

Rehabilitation and Compensation (14<br />

November 2017).<br />

KEY ASKS<br />

• That the recommendations of the<br />

Report be adopted, including: an end<br />

to the discrimination against those who<br />

suffer psychiatric injury arising from their<br />

employment; that those who are rendered<br />

totally and permanently incapacitated for<br />

work in the future should be entitled to<br />

long term income and medical support<br />

regardless of the percentage of whole<br />

person impairment; the provision of a<br />

proper allowance of legal representation<br />

costs for injured workers seeking<br />

Tribunal orders for employers to provide<br />

suitable employment; the percentage of<br />

whole person impairment to be able to<br />

pursue a claim for common law damages<br />

must be reduced to 10%, as is the case in<br />

other States.<br />

CTP REFORM<br />

The issue: Under the CTP scheme<br />

as introduced at 1 July 2013, unless<br />

catastrophically injured, those injured as<br />

a result of motor vehicle accidents are<br />

not entitled to an appropriate level of<br />

compensation. Not only is compensation<br />

in relation to severity of injury miserly, but<br />

an injured motorist has to be assessed at an<br />

Injury Scale Value of 11 to even be eligible<br />

for any compensation at all.<br />

KEY ASKS<br />

• The removal of Injury Scale Value<br />

thresholds as they limit the ability of<br />

the injured to qualify for compensation<br />

for both economic loss and noneconomic<br />

loss.<br />

• The CTP Scheme to allow appropriate<br />

compensation to the injured for pain<br />

and suffering.<br />

• The removal of a 20% reduction<br />

in compensation when calculating<br />

economic loss.<br />

• Reinstatement of the right of the<br />

injured to recover legal costs incurred<br />

associated with their claim for<br />

compensation, regardless of the value<br />

of their claim.<br />

VICTIMS OF CRIME<br />

The issue: Payments under the Victims of<br />

Crime Scheme are grossly inadequate and<br />

fail to reflect the trauma suffered by the<br />

victims of serious crimes.<br />

KEY ASKS<br />

• That the Victims of Crime scheme<br />

reverts back to an injury scale running<br />

from 1-50, as per the previous Victims<br />

of Crime Act, but the compensation<br />

payable doubled across the board and<br />

indexed to inflation.<br />

• Representation costs be allowed for<br />

legal representation on the same basis<br />

as the allowance of representation costs<br />

to injured workers under the Return to<br />

Work Act 2014.<br />

BBS Lawyers would like to<br />

welcome Jane Fox to their<br />

team. Jane has practised<br />

solely in Family Law since<br />

her admission in 2003 and<br />

is an Accredited Specialist<br />

in Family Law as recognised<br />

by the Law Society of<br />

SA. She is known for<br />

providing succinct and<br />

direct advice and she<br />

works hard to ensure<br />

exceptional representation<br />

for her clients and the best<br />

possible outcomes.<br />

JANE FOX<br />

SELINA NIKOLOUDAKIS<br />

Jane and Selina are available to take appointments.<br />

Call us now on 8110 2302<br />

BBS Lawyers would like<br />

to congratulate Selina<br />

Nikoloudakis on achieving<br />

her Specialist Accreditation<br />

in Family Law with the Law<br />

Institute of Victoria and the<br />

Law Society of SA.<br />

In addition, we recognise<br />

Selina for her achievement<br />

of the Sandra Paul<br />

Memorial Award as dux of<br />

the Master of Laws (Family<br />

Law) programme which she<br />

also completed in 2017.


TOP ELECTION ISSUES<br />

5. CHILD PROTECTION & YOUTH JUSTICE<br />

YOUNG OFFENDERS<br />

The issue: The Government does not<br />

have a cohesive plan for improving the<br />

welfare of vulnerable children. The strategy<br />

appears to favour incarcerating rather<br />

than rehabilitating at-risk young people.<br />

The Government recently passed a law to<br />

sentence young offenders as adults, and tried<br />

to introduce another law that would have<br />

allowed indefinite detention orders for repeat<br />

young offenders. On the other hand, the<br />

Government also introduced a prevention<br />

and early intervention Bill, but it was not<br />

passed before Parliament rose last year.<br />

KEY ASKS<br />

• That there be a significant expansion<br />

of early intervention and prevention<br />

programs, including intensive,<br />

individualised, youth-based rehabilitative<br />

programs that address the underlying<br />

factors of offending.<br />

• A commitment to increasing and<br />

accelerating access to rehabilitation and<br />

support programs for young people in<br />

custody.<br />

• That young people are not sentenced as<br />

adults but rather, directed to appropriate<br />

rehabilitation, diversion and restorative<br />

justice programs, under supervision.<br />

• That the Government engages<br />

in meaningful consultation with<br />

stakeholders on any proposed laws<br />

regarding the welfare and rights<br />

sentencing of children and youth<br />

offending.<br />

TIME LIMITS ON CHILD ABUSE<br />

COMPENSATION<br />

The issue: Under State law, anyone<br />

pursuing compensation for child abuse<br />

must lodge a claim within three years of<br />

their 18th birthday, or otherwise go through<br />

a long, difficult and potentially costly<br />

process to obtain a special exemption from<br />

the court. Applying for an exemption is<br />

often an insurmountable hurdle for victims<br />

of child abuse. This is a cruel restriction on<br />

the rights of child abuse victims who often<br />

take many years to come to grips with the<br />

abuse they have been subjected to and the<br />

ongoing trauma that follows.<br />

KEY ASKS<br />

• That the State abolishes time limits<br />

that currently apply to personal injury<br />

claims resulting from sexual abuse of a<br />

claimant where the claimant was a child.<br />

• That the removal of time limits be<br />

retrospective in effect so that victims<br />

whose claims may have been subject to<br />

a limitation are able to make a claim for<br />

damages.<br />

• That the definition of child abuse, for<br />

the purpose of making a personal injury<br />

claim, be expanded to include serious<br />

physical abuse and other abuse.<br />

6. ABORIGINAL JUSTICE<br />

JUSTICE REINVESTMENT<br />

The issue: A justice reinvestment initiative,<br />

designed to addressing the cultural, socioeconomic<br />

and psychological factors that<br />

contribute to the high rates of Aboriginal<br />

incarceration, does not have enough<br />

funding continue beyond this year.<br />

KEY ASKS<br />

• That ongoing government funding be<br />

provided to allow Justice Reinvestment<br />

SA to implement its five-year action<br />

plan in Port Adelaide and monitor the<br />

effectiveness of its justice reinvestment<br />

initiatives.<br />

• An increase in early intervention,<br />

prevention and rehabilitative services for<br />

Aboriginal communities.<br />

• A commitment to monitoring criminal<br />

behaviour and to reducing indigenous<br />

incarceration rates in SA in order to<br />

allow the development of evidencebased<br />

programs.<br />

INTERPRETERS<br />

The issue: The lack of Aboriginal<br />

interpreter services in the justice system<br />

is due to several factors, including: a lack<br />

of interpreters with a knowledge of legal<br />

processes, interpreters not being in the<br />

locations where matters are being heard,<br />

the costs incurred by interpreters (who<br />

often live in remote areas) in travelling to<br />

court matters, the restraints of Aboriginal<br />

customs, social issues, confidentiality and<br />

the contactability of interpreters.<br />

KEY ASKS<br />

Specific additional funding be provided to<br />

the Courts Administration Authority to:<br />

• create a think tank for interpreters,<br />

Aboriginal representatives, court<br />

personnel, trainers and accreditors to<br />

examine issues and challenges relating to<br />

interpreters and make recommendations<br />

to improve interpretive services<br />

• implement pay scales for interpreters to<br />

reflect the complexity and skill required<br />

in court work<br />

• provide training for interpreters, judicial<br />

officers, lawyers and court staff to foster<br />

a greater understanding of the roles of<br />

each party.<br />

7. BUILDING BUSINESS<br />

The issue: Lawyers are subject to<br />

heavy regulation, which puts them at a<br />

competitive disadvantage. The costs of<br />

operating a legal practice are increasing<br />

and are borne by clients. The impact of<br />

regulations therefore impacts on people’s<br />

ability to access legal services due to the<br />

cost of doing so. More broadly, the Society<br />

supports measures that:<br />

• ease the costs burden on all businesses,<br />

particularly legal practice<br />

• reduce and simplify the burdensome<br />

regulatory framework for legal practice<br />

• simplify and improve access to<br />

Government services that small<br />

businesses require to perform their<br />

work<br />

• open work opportunities for small<br />

businesses, particularly legal practices.<br />

18<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


TOP ELECTION ISSUE<br />

KEY ASKS<br />

• A commitment to an audit of all South<br />

Australian legislation and regulation that<br />

impacts on businesses as to continuing<br />

relevance and to simplify and reduce<br />

the regulatory burden.<br />

• Policy makers contemplating<br />

introduction or changes to major<br />

aspects of regulation must consult in<br />

a genuine and timely way with affected<br />

businesses, community organisations<br />

and individuals.<br />

8. PROTECTION OF ESSENTIAL STATE<br />

SERVICES<br />

PRIVATISATION OF THE LAND SERVICES<br />

GROUP<br />

The issue: The privatisation of services<br />

of the Lands Titles Office (LTO)<br />

was conducted without appropriate<br />

consultation. There has been a lack of<br />

transparency by the Government as to the<br />

terms and conditions of the contract the<br />

Government is entering into with Land<br />

Services SA, particularly regarding issues<br />

of privacy and the protection of personal<br />

data. South Australians have a right to<br />

know how data relating to their property<br />

ownership and transactions will be used<br />

and how it is to be protected.<br />

KEY ASKS<br />

• That the terms of and conditions of the<br />

Contract the Government is entering<br />

into with Land Services SA be publicly<br />

disclosed.<br />

• That in any future sale of a State-owned<br />

asset or a service provided by the State:<br />

o the Government outline its proposal<br />

including the results of a cost/<br />

benefit and risk analysis, before<br />

proceeding to amend legislation<br />

or include projections in the State<br />

budget<br />

o if not otherwise required to<br />

be debated by the Parliament,<br />

Parliamentary approval be required for<br />

sales expected to exceed $50 million<br />

o the terms and conditions of the<br />

contract be transparent<br />

PRIVATISATION OF FINES UNIT<br />

The issue: The Law Society has serious<br />

concerns about the passage of a Bill<br />

that allows the Government to privatise<br />

the fines unit, which is responsible for<br />

recovering unpaid fines. Under the Bill,<br />

a Chief Recovery Officer is responsible<br />

for recovering civil debt owed to the<br />

Government, and the Government could<br />

outsource the Chief Recovery Officer<br />

role to a private debt collection agency, or<br />

privatise the function entirely. The Society<br />

strongly opposes the privatisation of the<br />

Government’s fines collection functions.<br />

KEY ASK<br />

• That the responsibility for the collection<br />

of Government fines remain a function<br />

of the Government.<br />

9. SMARTER CRIMINAL POLICIES<br />

The issue: A number of legislative<br />

changes have been introduced since the<br />

last State election which have expanded<br />

the power of the State and eroded civil<br />

liberties. Several of these laws seek to hand<br />

even more authority to the State, increasing<br />

the risk of people being unfairly oppressed<br />

and persecuted.<br />

They include:<br />

• The Criminal Law Consolidation<br />

(Criminal Organisations) Amendment<br />

Bill 2017<br />

• Statutes Amendment (Child Exploitation<br />

and Encrypted Material) Bill 2017<br />

• The Statutes Amendment (Terror<br />

Suspect Detention) Bill 2017<br />

People are being detained for long<br />

periods of time without access to lawyers<br />

or rights. There is a growing number of<br />

instances where the presumption of bail<br />

has been revoked.<br />

KEY ASKS<br />

• That the Government enact a charter<br />

of rights to ensure that State laws are<br />

compatible with a set of principles that<br />

protect and promote the basic freedoms,<br />

rights and responsibilities of all South<br />

Australians.<br />

• That there be genuine consultation<br />

with stakeholders such as the Law<br />

Society on proposed legislative changes<br />

before they are introduced into<br />

Parliament.<br />

• That an evidence-based rationale be<br />

provided of the merits of proposed<br />

laws that may infringe a person’s rights<br />

and freedoms.<br />

10. PRISONS<br />

The issue: South Australia’s prisons are<br />

chronically overcrowded, which impacts<br />

on the delivery of rehabilitation programs,<br />

the release of prisoners at the end of<br />

their parole period, the capacity to treat<br />

cognitively impaired prisoners, and the<br />

ability of lawyers to meet with their clients<br />

in prison.<br />

KEY ASKS<br />

• Sufficient allocation of funds to support<br />

the execution of the “10by20” strategy<br />

to reduce re-offending by 10% by 2020<br />

• Adoption of the Standard Minimum<br />

Rules for the Treatment of Prisoners<br />

(“the Nelson Mandela Rules”) as<br />

minimum standards for people held in<br />

prisons and other forms of custody.<br />

• The concerns of the Society in<br />

relation to the Correctional Services<br />

(Miscellaneous) Amendment Bill<br />

2017 be addressed. In particular, the<br />

removal from the Bill of the proposed<br />

deletion of section 22(3) of the<br />

Correctional Services Act 1982, which<br />

provides that person who is sentenced<br />

to a term of imprisonment exceeding<br />

15 days must not be imprisoned in a<br />

police prison. B<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 19


TOP ELECTION ISSUES<br />

POLITICIANS RESPOND<br />

TO KEY LEGAL ISSUES<br />

The Law Society sent its Top 10 Election Issues submission to all political parties running in the<br />

upcoming State election. All parties except SA Best submitted responses to the Law Society’s<br />

submission. The following pages feature selected extracts of the responses of political parties. The full<br />

responses will be sent to Members via a special edition of Advocacy Notes in <strong>February</strong>.<br />

SA LABOR<br />

NEW COURT PRECINCT<br />

The Government is committed to<br />

the development of modern and<br />

technologically advanced State Courts.<br />

The recent announcement of $31 million<br />

towards new criminal courtrooms (where<br />

the most acute difficulty exists) reflects this<br />

commitment. It also marks the early stage<br />

of this important staged upgrade to the<br />

State’s court infrastructure.<br />

PROBATE & COURT FEES BASED ON THE<br />

VALUE OF THE WORK INVOLVED.<br />

If this change is to be responsibly<br />

adopted, the Government considers it<br />

important to consult with the Courts<br />

Administration Authority to understand the<br />

impact this may have on its budget. We are<br />

open to discussing this with the CAA.<br />

PSYCHOLOGICAL & PSYCHIATRIC SERVICES<br />

FOR PRISONERS<br />

The Government is considering<br />

expanding in-reach mental health services<br />

provided to prisoners, which will include<br />

those on remand.<br />

We currently have psychological services<br />

in place for the assessment and treatment<br />

of prisoners comprising more than<br />

70 psychologists, social workers, and<br />

assessment and rehabilitation clinicians<br />

employed across the prison system.<br />

This Government also invested in the<br />

High Dependency Unit at Yatala Labour<br />

Prison and the Complex Needs Unit at Port<br />

Augusta Prison, providing specialist services<br />

for prisoners with acute psychological needs.<br />

WORKERS COMPENSATION REFORM<br />

On 14 November 2017 the Government<br />

appointed former Justice of the Federal<br />

20 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

Court of Australia, the Hon John Mansfield<br />

AM QC, to conduct an independent<br />

review of the Return to Work Act and its<br />

administration and operation pursuant to<br />

section 203 of the Act.<br />

The review commenced on 4 December<br />

2017. The review will be completed within<br />

six months of its commencement. The<br />

Society is invited to make a submission to<br />

the review.<br />

VICTIMS OF CRIME SCHEME<br />

In light of the Government’s recent<br />

increase to the maximum payable and legal<br />

fees under the Victims of Crime scheme,<br />

we consider it prudent to allow sufficient<br />

time to monitor and review these recent<br />

changes and its impact before considering<br />

any further such changes.<br />

It should also be noted that in appropriate<br />

circumstances the Attorney General has<br />

discretion to consider awarding a higher<br />

payment.<br />

COMPENSATION FOR CHILD ABUSE VICTIMS<br />

The Government considers there is<br />

no need to abolish such time limits. The<br />

Government’s ex gratia compensation<br />

scheme works well and provides survivors<br />

an alternative means to seek compensation<br />

and avoid the trauma of the courts process.<br />

It may also be noted that the Court has<br />

discretion to extend any time limits and the<br />

Government understands there has been<br />

no case to date where the Court has refused<br />

any relevant application for an extension of<br />

time.<br />

PUBLIC DISCLOSURE OF LAND SERVICES SA<br />

CONTRACT<br />

It is important for the benefit of South<br />

Australians that there is business confidence<br />

in transacting with the Government.<br />

Accordingly, documents the subject of<br />

commercial in confidence should maintain<br />

such confidence.<br />

PRISONER REHABILITATION<br />

As part of our $40 million commitment<br />

to the implementation of the 10by20<br />

strategy, the South Australian Labor<br />

Government committed $12.513 million to<br />

deliver additional rehabilitation programs<br />

for prisoners.<br />

These programs focus on addressing<br />

the dynamic risk factors related to violent,<br />

sexual, domestic violence, generalised and<br />

drug-related offending.<br />

The delivery and effectiveness of<br />

these additional programs will be closely<br />

monitored by the DCS Chief Executive and<br />

Executive Group who have oversight of<br />

10by20’s progress.<br />

SA LIBERAL<br />

Deputy Opposition Leader Vickie<br />

Chapman MP responded on behalf of<br />

the Liberal Party<br />

NEW COURTS PRECINCT<br />

Clearly South Australia’s Supreme Court<br />

buildings are derelict and in some cases<br />

dangerous. I expect the Government’s<br />

current $31 million refit in the Supreme<br />

Court buildings will be suitable for up to<br />

10 years. Much of this will be spent on<br />

buildings leased by Government.<br />

So far, the Government have refused to<br />

provide any of the planning documents<br />

or documents prepared for tender of the<br />

options previously announced and cancelled<br />

for a new court building.<br />

My commitment is to review this material<br />

if elected in March as a first priority.<br />

SUPREME COURT UPGRADES<br />

Although our former Chief Justice<br />

suffered the indignity of not being able to<br />

access his courts when using a wheelchair,<br />

making improvements to the Supreme<br />

Court Building prior to a comprehensive<br />

rebuild may not be the best use of funds<br />

for public and professional disability access.<br />

I would prefer to ask SafeWork SA to


TOP ELECTION ISSUES<br />

prioritise areas necessary to comply with<br />

occupational health and safety standards.<br />

Any rebuild will require disability standards<br />

to be adhered to.<br />

COMMUNITY LEGAL CENTRE FUNDING<br />

It is disappointing that whilst the Federal<br />

Government reconsidered its commitment<br />

to Community Legal Centre funding, that<br />

the same has not been followed by the<br />

State Government. In 2017 the Liberal<br />

Party committed to reinstate services at<br />

the Riverland Community Legal Centre,<br />

which was a direct recommendation<br />

from the Federal Attorney-General when<br />

reconsidering their funding arrangement.<br />

VICTIMS OF CRIME SCHEME<br />

The Victims of Crime fund continues<br />

to accumulate and we have indicated our<br />

support to applying these monies to assist<br />

with domestic violence, drug addiction and<br />

victims generally.<br />

A priority will be to establish the Justice<br />

Rehabilitation Fund, which was promised<br />

two years ago by the State Government,<br />

under confiscation of assets legislation.<br />

CHILD PROTECTION & EARLY<br />

INTERVENTION<br />

The Liberals have committed to the<br />

appointment of an Assistant Aboriginal<br />

Children’s Commissioner. The Government<br />

have not.<br />

Further, we have announced a youth drug<br />

treatment law reform policy, which the<br />

Government continue to oppose.<br />

COMPENSATION FOR CHILD ABUSE VICTIMS<br />

Funds are available in the Victims of<br />

Crime Fund to support extra compensation<br />

payments for victims of institutional child<br />

sexual abuse. Shortly after the Nyland<br />

report was tabled I introduced vital<br />

legislation to remove any time limit to CSA.<br />

The Government refused to support this<br />

legislation however I commit to pursue the<br />

same if elected.<br />

CHARTER OF RIGHTS FOR SA<br />

A charter of rights may have some merit,<br />

but I note the Bill of Rights applying in<br />

Victoria has been most commonly used by<br />

bikie gang members.<br />

PRISONER REHABILTIATION<br />

It is hardly surprising that we have high<br />

recidivism by prisoners in our adult facilities<br />

and youth training centres. Parole Board<br />

Chair, Frances Nelson QC, has repeatedly<br />

complained of the lack of adequate or<br />

merely accessible rehabilitation programs.<br />

Clearly this must change, with services<br />

offered broadly over all prison facilities to<br />

the prisoners who need the services most.<br />

The Opposition have announced policies<br />

to curb drug and mobile phone use in<br />

prisons, and around prisoner voting.<br />

GREENS SA<br />

PROBATE & COURT FEES BASED ON THE<br />

VALUE OF THE WORK INVOLVED<br />

The Greens were the only Party that<br />

advocated on behalf of the Law Society for<br />

changes to Probate fees as part of the 2016<br />

State Budget.<br />

DISABILITY ACCESS IN COURTS<br />

Access to justice is a key priority for<br />

the Greens. We believe that full and<br />

unencumbered participation in the<br />

legal system for people with disability is<br />

essential, and are committed to providing<br />

resources to the Courts Administration<br />

Authority to achieve this aim. In particular,<br />

the Greens support the urgent allocation<br />

of funds for upgrades of courtrooms 1<br />

and 2 of the Supreme Court to provide<br />

full disability access and the engagement<br />

of a disability access consultant to make<br />

recommendations regarding the further<br />

redevelopment of the courts.<br />

LEGAL AID FUNDING<br />

The Greens were key advocates in<br />

Parliament for the campaign by the Law<br />

Council of Australia and the Law Society<br />

for increased funding for both CLCs and<br />

the Legal Services Commission.<br />

PSYCHOLOGICAL AND PSYCHIATRIC<br />

SERVICES FOR PRISONERS<br />

The Greens recognise that there are<br />

insufficient resources to currently deal<br />

with the psychiatric and psychological<br />

needs of participants in the legal system.<br />

The consequential delays to trials and<br />

the compromised services offered to<br />

defendants, remandees and prisoners are<br />

unacceptable. We completely support all of<br />

the Law Society Key Asks to address this<br />

urgent area of need.<br />

JUSTICE REINVESTMENT<br />

The original initiative for Justice<br />

Reinvestment in South Australia came from<br />

former Greens SA Senator, Penny Wright.<br />

We remain committed to this project.<br />

ABORIGINAL INTERPRETIVE SERVICES<br />

The Greens have a strong track record<br />

in campaigning for better outcomes for<br />

Aboriginal people participating in the justice<br />

system, and have fought hard for the recent<br />

increased funding for interpreters and to<br />

raise awareness of the important role they<br />

play in access to justice and in keeping<br />

people out of unnecessary incarceration.<br />

Specific funding for interpreters (and<br />

associated roles) as outlined in the Law<br />

Society’s Key Asks would help to overcome<br />

some of the significant challenges faced by a<br />

number of Aboriginal people in the courts.<br />

AUSTRALIAN CONSERVATIVES –<br />

SA DIVISION<br />

NEW COURTS PRECINCT<br />

Australian Conservatives believe that<br />

the South Australian Court system has<br />

been neglected under the current Labor<br />

Government, and agrees that whoever<br />

forms government must commit to the<br />

construction of a new State Courts precinct<br />

with a proper plan and schedule.<br />

FUNDING FOR COURTS ADMINISTRATION<br />

AUTHORITY<br />

Australian Conservatives have been highly<br />

critical and have opposed the closure of<br />

regional courts and other cost cutting<br />

measures which resulted from the Labor<br />

Government’s cuts to the operating budget<br />

of the CAA.<br />

We will support measures to increase the<br />

CAA budget as we believe that local court<br />

services in regional areas must be available.<br />

We also believe a well-funded court system<br />

is needed to minimise the time it takes<br />

for cases to progress. A faster system is<br />

necessary to reduce the anguish experienced<br />

by victims, witnesses and defendants.<br />

LEGAL AID FUNDING<br />

Legal Aid funding is paramount to<br />

give proper access to the courts for<br />

disadvantaged people. We know there is<br />

an inadequacy in this area as we regularly<br />

try to assist constituents who have trouble<br />

accessing the justice system. We support<br />

the restoration of the $6m funding cut<br />

to Legal Services Commission by the SA<br />

Government.<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 21


TOP ELECTION ISSUES<br />

WORKERS COMPENSATION REFORM<br />

We argued strongly against the changes<br />

to Workers Compensation and believe it<br />

is unfair and needs review. We support<br />

the concept of a lifetime support scheme<br />

however, questions have been raised about<br />

the adequacy of compensation which we<br />

consider needs to be reviewed in the next<br />

term of government.<br />

PRISONER REHABILITATION<br />

Our prisons are chronically overcrowded<br />

and we believe the strategy to reduce<br />

recidivism by 10% should be a minimum<br />

target. More needs to be done to<br />

rehabilitate prisoners and it is never in<br />

the interest of the community to release<br />

someone on early parole if they have not<br />

completed their rehabilitation program.<br />

PROTECTION OF ESSENTIAL STATE SERVICES<br />

Australian Conservatives has fought<br />

against the sale of essential services in<br />

South Australia and had a bill before the<br />

South Australian Parliament which was<br />

defeated with both major parties voting<br />

it down 14-6 in late November. The<br />

Parliamentary Committees (Public Assets<br />

Committee) Amendment Bill 2017 called<br />

for greater scrutiny over the potential sale<br />

of any state asset through the establishment<br />

of a Public Assets Committee.<br />

We believe that government should be<br />

involved in some business and not involved<br />

in other. The Lands Titles Office is one<br />

area that should remain the business of<br />

government.<br />

We agree with the Law Society that the<br />

terms and conditions of the contract the<br />

government is entering into with Land<br />

Services SA be publicly disclosed.<br />

ADVANCE SA<br />

Lead candidate Peter Humphries<br />

responded on behalf of Advance SA<br />

NEW COURTS PRECINCT<br />

The need for a new Courts Building is<br />

very long overdue. It is, in my opinion,<br />

quite disgraceful that South Australia is still<br />

condemned to a Courts building which<br />

is not only old and totally unsuited to<br />

current needs but which has fallen into an<br />

advanced state of disrepair as successive<br />

Governments have chosen to spend money<br />

on any number of other capital works<br />

projects in preference to a new Courts<br />

Building. This should be a priority of the<br />

next Government.<br />

WORK COVER REFORM<br />

I agree with the suggestions in relation<br />

to the Workcover Scheme. As far as the<br />

CTP scheme is concerned I think it is<br />

realistic to revert to the Queensland<br />

scheme without the added thresholds and<br />

for the level of compensation for P&S<br />

to similarly be set by reference to the<br />

Queensland Scale.<br />

I strongly agree with the proposals put<br />

forward in relation to Victims of Crime.<br />

COMPENSATION FOR CHILD ABUSE VICTIMS<br />

I am in broad agreement with the<br />

proposals put forward under the Child<br />

Protection heading and very strongly<br />

committed to the removal of the Statutory<br />

limitations impacting victims of abuse. It<br />

is a matter of some embarrassment to me<br />

that SA is the only State that either has not<br />

already removed that limitation or has not<br />

committed to do so.<br />

DIGNITY PARTY<br />

NEW COURTS PRECINCT<br />

The Dignity Party support a commitment<br />

to the construction of a new State Courts<br />

precinct by 2023, with the <strong>2018</strong>-19<br />

State budget to provide funding for the<br />

development of a plan.<br />

DISABILITY ACCESS IN COURTS<br />

The Dignity Party demand that all new<br />

construction court facilities are built to<br />

meet universal design principles, and agree<br />

with the SA Law Society that:<br />

The Courts Administration Authority<br />

must be provided with the resources to<br />

engage a specialist accredited disability<br />

access consultant to provide advice<br />

and recommendations on the courts<br />

redevelopment project.<br />

CHILD PROTECTION & EARLY INTERVENTION<br />

The Dignity Party are calling for a<br />

significant expansion of early intervention<br />

and prevention programs, including<br />

intensive, individualised, youth-based<br />

rehabilitative programs that address<br />

the underlying factors of offending,<br />

such as education, health, employment,<br />

homelessness and child protection.<br />

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<strong>February</strong> <strong>2018</strong> THE BULLETIN 23


POEMS FOR THE<br />

CITIZENSHIP SEVEN<br />

Last year, Australian politics was caught in the grip of, if not a Constitutional crisis, then at least<br />

a Constitutional debacle as Parliamentarian after Parliamentarian found themselves on the wrong<br />

side of the “dual citizenship” provision of Section 44. While a new wave of politicians have been<br />

implicated in the saga, constitutional law expert Stephen McDonald of Hanson Chambers has<br />

captured the drama, farce, tragedy and triumph that surrounded the first seven to be referred to the<br />

High Court, otherwise known as the “Citizenship 7”. Please enjoy Mr McDonald’s poetic odes to this<br />

infamous gang.<br />

24 THE BULLETIN <strong>February</strong> <strong>2018</strong>


CITIZENSHIP 7 POEMS<br />

IT IS WITH A HEAVY HEAR THAT I AM<br />

FORCED TO RESIGN — A VILLANELLE<br />

Senator Larissa Waters<br />

By S A McDonald<br />

It is with a heavy heart that I am forced to resign<br />

In this, the winter of the Greens’ discontent<br />

I’ve done the honourable thing, haven’t I?<br />

Conceived in the shade of a North American pine<br />

My parents brought me home from<br />

Canada, barely nascent<br />

It is with a heavy heart that I am forced to resign<br />

I’ve fought all my adult life to protect sea and sky<br />

The first to breastfeed in the<br />

Commonwealth Parliament<br />

I’ve done the honourable thing, haven’t I?<br />

Yet there’s much left to do: the Adani mine<br />

Gender equality and defending the environment<br />

It is with a heavy heart that I am forced to resign<br />

The effect of section 44 is surely to disqualify<br />

Though the Attorney submits that was never the intent<br />

I’ve done the honourable thing … haven’t I?<br />

It is with a heavy heart that I am forced to resign<br />

I’ve done the honourable thing, haven’t I?<br />

ODE ON A GRECIAN POLITICIAN<br />

Senator Nick Xenophon<br />

By S A McDonald<br />

Thou ne’er defeated prince of politics<br />

Thou princ’pl’d pragmatist of South Australia<br />

For thy State thy very neck thou risked<br />

To hold the balance of pow’r throughout Australia<br />

You began as SA’s No Pokies MP<br />

Thy re-election time and time again<br />

And the polls which constantly reflect<br />

Thy growing popularity<br />

All the more remarkable given<br />

Poker Machine numbers remain unchecked<br />

But who are they who falsely now accuse?<br />

Who see in thee a touch of Britishness?<br />

Those rogues who now implore thee to recuse<br />

Thyself from further Parliament’ry business?<br />

Are thee with thine home State so smitten<br />

As to resign before the case be even heard?<br />

Does thy faith in counsel waver, then, or what?<br />

Thou hast no right of abode in mother Britain<br />

And to no foreign sovereign gave thy word<br />

Whatever be a BOC, a subject or citizen ’tis not!<br />

LAMENT FOR FIONA NASH<br />

(IN THE STYLE OF ROBERT BURNS)<br />

Senator Fiona Nash<br />

By S A McDonald<br />

A guid Scots lad a-walkin’ gaed<br />

An’ splored in yonder thrissle<br />

Then hooked a train to London an’<br />

A cantie spring did whissle<br />

For swith to fin’ a wife were he<br />

An’ fin’ yin, aye, he did<br />

A bit lassie from Sydney toun<br />

In Essex they were wed<br />

This bonnie lass from New Sooth Wales<br />

Two dochters did she bear<br />

Afore they visited Cronulla<br />

And decided tae live there<br />

Anither bairn was born tae thaim<br />

But she was barely aught<br />

Whan her parents, they did sinder:<br />

For they’d had a donsie faught<br />

For this wee thing Fiona<br />

Her daddie ceased tae fen<br />

Her vauntie lallan ancestry<br />

Soon passed ayont her ken<br />

She married Nash, a crofter<br />

An’ became a politician<br />

Than a chieftain o’ her pairtie<br />

Wi’ ne’er a thocht of Britain<br />

Till the deemsters o’ Austrailae<br />

In thair judgment, tae her fash<br />

Annoonce “five are disqualified<br />

Including Fiona Nash”<br />

But dinnae be ower angry,<br />

Ye mustn’t loss your chear<br />

Ye shan’t hae lang tae wai’, m’ lass<br />

An election’ll soon be here<br />

HAIKU<br />

Senator Malcolm Roberts<br />

By S A McDonald<br />

Of Welsh parentage<br />

A natural born Indian<br />

Whatever that means<br />

A British subject<br />

Tossed on the tide of history<br />

An Australian<br />

Am I still British?<br />

Dot gov dot uk Sydney<br />

I choose to believe<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 25


CITIZENSHIP 7 POEMS<br />

THE BALLAD OF BARNABY JOYCE’<br />

Barnaby Joyce MP<br />

By S A McDonald<br />

’Twas Barnaby from Tamworth, whom voters did affirm<br />

Would represent New England for the twenty sixteen term<br />

To keep his place in Parliament our Barnaby did defeat<br />

The independent Tony Windsor, former holder of the seat<br />

The election was a close one, with Turnbull re-elected<br />

And Barnaby as Deputy was once again selected<br />

But Barnaby’s opponent, that industrious Independent<br />

Had no idea that Barnaby was a New Zealand descendant<br />

Well Barnaby, he knew of course, his father had be proud<br />

To migrate to Australia from the Land of the Long White Cloud<br />

But what he hadn’t twigged to was that by this quirk of kinship<br />

Our Deputy Prime Minister held dual citizenship<br />

The citizenship crisis, first struck in mid July:<br />

Two Members who had not renounced<br />

and thought they must resign<br />

These first two victims both were Greens;<br />

their favourite sons and daughters<br />

The two co-deputy leaders, Mr Ludlam and Ms Waters<br />

Said Barnaby prophetically, when asked about the Greens:<br />

“The Constitution’s clear I think; it’s certain what it means<br />

“Ignorance is no excuse — the law is just the law<br />

“You can’t be a dual citizen, under section 44.”<br />

Matt Canavan, a National, and fellow Minister<br />

Then seemed to be Italian, though hardly sinister<br />

Then in August without warning, came the great catastrophe:<br />

Our Barnaby got a tip-off, that he might just be a kiwi<br />

Stephen Donaghue’s advice was sought,<br />

it seemed to be a beauty<br />

Barnaby could still perform his ministerial duty<br />

Turnbull was emphatic, the S-G’s advice was bold:<br />

“Barnaby’s qualified to sit, AND THE HIGH<br />

COURT WILL SO HOLD!”<br />

But when Barnaby stood in Parliament, and tried to use his voice<br />

He heard from the opposition bench an unseemly baa-ing noise<br />

But Barnaby our hero, he wasn’t finished yet<br />

At a hearing before Kiefel, a Full Court date was set<br />

And Barnaby in due course, was joined by several others:<br />

Fiona Nash his deputy, and Xenophon, and Roberts<br />

Barnaby engaged a team of lawyers led by Walker<br />

An advocate supposed to be the High Court’s greatest talker<br />

Written subs were filed, by which a pretty good attempt<br />

Was made to tell the High Court, that Barnaby was exempt.<br />

The argument, shortly stated? If a person never knew<br />

They had two nationalities, no split allegiance could accrue<br />

But when the hearing date arrived, our hero was shocked to see<br />

Represented at the bar table, his great adversary<br />

That’s right, old Tony Windsor had<br />

convinced the Court he’d reason<br />

To appear as contradictor, represented by Justin Gleeson<br />

Well, if ever there has been a match for Bret Walker SC<br />

It’s that former Solicitor-General’s brand of brilliant adv’cacy<br />

In time the arguments for Barnaby were skilfully encircled<br />

(Followed by a history lesson, presented by Ron Merkel)<br />

Both Donaghue and Walker, with silver tongue, replied<br />

And generally it was agreed, “This isn’t cut and dried.”<br />

“We know you want an answer, we’re afraid you’ll have to wait,”<br />

The Court declared, “We’ll be back soon,<br />

to tell you of your fate.”<br />

And so it was in just two weeks, the Court did reconvene<br />

Chief Justice Kiefel, Justice Bell, and Gag-e-ler and Keane<br />

And Nettle, Gordon, Edelman; they were unanimous<br />

Poor Barnaby disqualified: and yet magnanimous<br />

Among the silver gums, and far away from lawsuits<br />

Dressed in his Akubra hat and RM Williams boots<br />

He called a presser urgently, and Barnaby surmised:<br />

“I actually saw this coming; I’m not a bit surprised.”<br />

To everybody’s puzzlement, Tony Windsor then announced<br />

He’d not contest a by-election,<br />

and since Barnaby’d now renounced<br />

His new found nationality, he was eligible to run.<br />

“In fact,” he thought, “With Windsor out,<br />

this actually could be fun!”<br />

He knew the odds of victory towards him strongly lent:<br />

The two-party preferred margin was at 16.4 per cent!<br />

Meanwhile in the Parliament, more chaos was ensuing<br />

The President of the Senate, the very bloke who had been doing<br />

The referrals to the High Court, made an astonishing admission:<br />

He had known that he was British, but a senior politician<br />

Had advised him not to mention it,<br />

in the hope the Court would say<br />

That being a dual-citizen was actually okay.<br />

Vicious rumours circled, of Ecuadorians and Greeks<br />

And three more British citizens emerged in coming weeks<br />

John Alexander, a tennis player, who’d wondered all along<br />

Why he felt at home at Wimbledon as much as Bennelong<br />

The outspoken Jacquie Lambie,<br />

who’s family history had been written<br />

Now realised that her Network extended all the way to Britain<br />

With a mother born in Singapore was Skye Kakoschke-Moore<br />

All of these fell victim to the scourge of 44<br />

And even as we gather here, to listen to this story<br />

A question mark still hovers above another category:<br />

Each MP with foreign ties which they had sought to sever<br />

Whose renunciation of citizenship, despite their best endeavour<br />

At the time of nomination, was sadly incomplete<br />

But back to our protagonist, and the race to fill his seat<br />

A motley field of candidates, in number seventeen<br />

Nominated for this by-election, the greatest ever seen<br />

Including if you can believe, this “name agnostic” smartie:<br />

Meow-Ludo Disco Gamma Meow Meow for the Science Party<br />

I’ll bet my hat the voters of New England make the choice<br />

To keep this tale going: the adventures of Barnaby Joyce<br />

The by-election will be held on the second of December<br />

And so my friends, the ballad ends, because it’s still November.<br />

26 THE BULLETIN <strong>February</strong> <strong>2018</strong>


CITIZENSHIP 7 POEMS<br />

LIMERICKS FOR LUDLAM<br />

Senator Scott Ludlam<br />

By S A McDonald<br />

A senator from West Australia<br />

Campaigned long and hard for the failure<br />

Of nuclear stations<br />

And for peace among nations<br />

And collected Greens paraphernalia<br />

That Honourable Senator, Scott<br />

A New Zealander thought he was not<br />

Despite naturalisation<br />

Cit’zenship of that nation<br />

To renounce, it appears he forgot<br />

To the Court he submitted, “I erred”<br />

Almost everyone else there concurred<br />

Including their Honours,<br />

Who said, “Yes, you’re all goners;<br />

To hold otherwise is absurd”<br />

SONNET NO [2017] HCA 45<br />

Hon Senator Matthew Canavan<br />

By S A McDonald<br />

In corridors of power there did dwell<br />

A represent’tive of the Sunshine State<br />

His ministry he felt it would be well<br />

To set aside while courts decide his fate<br />

It was (alas!) no cause for celebration<br />

Acquiring that which he had never sought<br />

A retrospective redetermination<br />

Of the Italian Constitut’nal Court<br />

But hearken ye to counsel who now acts<br />

With twademark voice and most familiar face<br />

In absence’f contradictor as to facts<br />

Up silken sleeve he keeps a hidden ace<br />

— That common lawyer to this end doth steer:<br />

That civil lawyers say this civil law’s unclear<br />

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RISK WATCH<br />

Have you settled? ‘Yes’ or ’No’<br />

might not be the answer<br />

AMANDA ADAMSON, SENIOR SOLICITOR, LAW CLAIMS<br />

When negotiating settlements<br />

always specifically advert to<br />

whether or not your negotiations<br />

result in an agreement which is<br />

immediately binding.<br />

id you settle?” ask your colleagues<br />

“Dexpectantly when you return from<br />

Court. Most of the time your answer will<br />

be “Yes” or “No”.<br />

The conversation will not usually go<br />

like this: “Did you enter an immediately<br />

binding legal contract for the client today?”<br />

“No, but we are in the third class of<br />

Masters v Cameron and I think we will get<br />

there eventually”, even though such a<br />

conversation might be the technically<br />

correct answer. Accordingly, it does not<br />

take much imagination to understand the<br />

issue facing the Court in Gailey Projects Pty<br />

Ltd v McCartney and Anor 1 about whether<br />

the parties had reached a legally binding<br />

settlement after a day of negotiation.<br />

On the first day of a two-week trial, the<br />

trial Judge stood the matter down to allow<br />

the parties to negotiate. You can picture<br />

the scene that the trial Judge described;<br />

offers passing backward and forward,<br />

counsel and solicitors variously involved,<br />

in and out of conference rooms and over<br />

the telephone. By 5pm, the words “done<br />

deal” were uttered by someone and there<br />

was discussion whether the Judge should<br />

be informed of the settlement. It was<br />

decided that the solicitors should exchange<br />

emails recording what had been agreed and<br />

report to the Judge the following morning<br />

that settlement had been reached. There<br />

was some discussion about a deed and a<br />

suggestion by at least one party that a deed<br />

was unnecessary. That evening, an email<br />

was sent purporting to set out the terms<br />

of settlement. The email was different in<br />

five respects from the agreement that had<br />

been reached during the day. This lead to<br />

an allegation by the plaintiff that there<br />

28 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

was no settlement. The defendant applied<br />

to the trial Judge for a declaration that<br />

settlement had been reached.<br />

The trial Judge’s reasons contain an<br />

orthodox analysis of contract formation. 2<br />

The trial Judge’s consideration of whether<br />

the parties intended to be immediately<br />

legally bound by their agreement arises<br />

from Masters v Cameron 3 where the High<br />

Court divided the intention to create legal<br />

relations prior to execution of a written<br />

agreement into three classes and Sinclair,<br />

Scott & Co Ltd v Naughton 4 where a fourth<br />

class was proposed. As to these classes:<br />

1. in the first class, the parties have reached<br />

finality in all terms of the bargain and<br />

intend to be immediately bound to<br />

perform all terms and at the same time<br />

intending to have those terms restated<br />

in a form that is fuller or more precise<br />

but no different in effect;<br />

2. in the second class the parties have<br />

reached finality in all terms of the<br />

bargain and intend to be immediately<br />

bound but have nevertheless made<br />

performance of one or more terms<br />

conditional upon the execution of a<br />

formal contract;<br />

3. in the third class, the parties do not<br />

intend to be legally bound unless or<br />

until they execute a formal contract;<br />

4. in the fourth class, the parties have<br />

reached finality in some terms of the<br />

bargain and intend to be immediately<br />

bound to perform those terms and at<br />

the same time intend to make a further<br />

contract in substitution of the first<br />

contract containing additional terms by<br />

consent.<br />

The parties are immediately bound to<br />

varying extents without a contract in writing<br />

in the first, second and fourth classes but<br />

not at all in the third class. As the trial Judge<br />

explicitly observed, there is no presumption<br />

that parties do not intend to be legally<br />

bound until a deed is executed. 5<br />

The principles applied by the trial Judge<br />

are well established by the South Australian<br />

decision of Lucke v Cleary & Ors. 6 In<br />

that case, the Full Court referred to the<br />

following matters:<br />

• The intention to be immediately bound<br />

is assessed objectively.<br />

• A solicitor has ostensible authority to<br />

bind a client in settlement of litigation.<br />

• Evidence of post contractual conduct is<br />

admissible on the question of whether<br />

settlement has been reached.<br />

When having regard to the following<br />

matters, the Gailey trial Judge concluded<br />

that the parties had intended to be<br />

immediately bound by 5pm on the day of<br />

the negotiation:<br />

• Negotiations were conducted on the<br />

first day of a 10-day trial such that it<br />

was readily inferred the parties were<br />

attempting to avoid trial costs.<br />

• Negotiations were conducted by Senior<br />

Counsel.<br />

• One of the agreed terms required action<br />

within 24 hours.<br />

• No person had said that there was no<br />

deal unless it was reduced to writing.<br />

• Although a deed had been mentioned,<br />

at least one party had expressed it to be<br />

unnecessary.<br />

• The words “we accept”and “we have a<br />

deal” are consistent with the intention to<br />

create legal relations.<br />

• The express purpose of the email<br />

Even the phrase subject to contract while perhaps<br />

usually signifying an in principle agreement or an<br />

agreement to agree sometime in the future needs<br />

to be measured against the relevant context.


RISK WATCH<br />

exchange between solicitors was to set<br />

out what had already been agreed.<br />

• The parties intended to inform the Judge<br />

of the settlement the following morning.<br />

• Counsel had spoken to persons outside<br />

to the litigation to the effect that it had<br />

settled.<br />

On one hand, Courts have warned against<br />

making incorrect assumptions from the use<br />

of words and conduct that parties usually<br />

associate with the formation of contracts<br />

such as “deal” or “bargain” and the shaking<br />

of hands. 7 On the other, a mere reference<br />

to the drafting of a deed does not make<br />

the agreement subject to contract. 8 Even<br />

the phrase subject to contract while perhaps<br />

usually signifying an in principle agreement<br />

or an agreement to agree sometime in the<br />

future needs to be measured against the<br />

relevant context. 9<br />

Although Courts have said that there<br />

is no particular language or conduct that<br />

will be determinative of the objective<br />

analysis of the parties’ intentions, in Lucke,<br />

the communication to the Court that the<br />

parties had settled was an important feature<br />

in favour of the finding of an immediately<br />

binding settlement.<br />

The lesson to be learned from cases like<br />

Gailey and Lucke is that there is no downside<br />

to expressly stating either that your client<br />

intends to be immediately legally bound by<br />

terms which you go on to identify or it does<br />

not. There may be utility in actually using<br />

the language of the High Court’s Master v<br />

Cameron classes. At the very least, language<br />

of this kind is likely to prompt relevant and<br />

constructive discussion about the parties’<br />

intentions, the certainty of terms and the<br />

relevance of any subsequent deed before<br />

representations are made to the Court.<br />

Endnotes<br />

1 [2017] QSC 185<br />

2 At [46], the trial Judge posed three questions; (i)<br />

Did the parties have an intention to create legal<br />

relations? (ii) Were there material terms which<br />

were yet to be agreed or were uncertain? (iii)<br />

Was any agreement to compromise intended<br />

to be conditional upon execution of a deed of<br />

settlement?<br />

3 [1954] HCA 72<br />

4 [1929] HCA 34<br />

5 [2017] QSC 185 [70]<br />

6 [2011] SASCFC 118<br />

7 Stellard Pty Ltd & Anor v North Queensland Fuel Pty<br />

Ltd [2015] QSC 119 [33]<br />

8 Lucke v Cleary & Ors [2011] SASFC 118<br />

at [72]<br />

9 Stellard Pty Ltd & Anor v North Queensland Fuel Pty<br />

Ltd [2015] QSC 119 [36] – [38]<br />

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GET IN ON THE ACT<br />

Costs disclosure in Litigation<br />

ETHICS & PRACTICE UNIT<br />

“Get in on the Act” is a new<br />

monthly column from the Law<br />

Society’s Ethics & Practice Unit<br />

which details practitioners’<br />

statutory professional obligations<br />

and responsibilities.<br />

As from 1 July 2014 all new costs<br />

agreements had to be compliant with<br />

Schedule 3 of the Legal Practitioners Act<br />

1981 (the Act) and from 1 July 2015 all<br />

pre-1 July 2014 costs agreements also had<br />

to be compliant with Schedule 3.<br />

The main thrust of Schedule 3 revolves<br />

around disclosing to clients what the cost<br />

implications of intended proceedings<br />

will be so that they can make informed<br />

decisions as to whether to proceed or not.<br />

The purpose of this article is to serve as<br />

a reminder to practitioners of the above,<br />

particularly in litigation matters with<br />

particular reference to sub-clauses 10(1)(g)<br />

and 10(4) of Schedule 3 of the Act.<br />

These sub-clauses make it clear that<br />

clients are to be informed not only<br />

of what costs they may recover if<br />

successful with the litigation but also<br />

what they may be required to pay if<br />

unsuccessful.<br />

The disclosure requirement is further<br />

expanded by sub clause 4 which requires<br />

the disclosure to also contain a statement<br />

advising the client that even if the court<br />

orders a payment in favour of the client,<br />

the client may still be out of pocket as not<br />

all fees incurred can be recovered. The<br />

disclosure must also make it clear to the<br />

client that even if they are unsuccessful<br />

with the litigation they may still be<br />

expected to pay disbursements even in the<br />

case of a conditional costs agreement.<br />

Clause 10 of Schedule 3 proceeds to<br />

set out the requirements and states the<br />

following (clauses 10(1)(g) and 10(4) have<br />

been underlined for easy reference):<br />

10—Disclosure of costs to clients<br />

(1) A law practice must disclose to a client in<br />

accordance with this Part—<br />

(a) the basis on which legal costs will be<br />

calculated, including whether a scale of<br />

costs, or a recommendation as to the<br />

calculation of barristers’ costs, applies to<br />

any of the legal costs; and<br />

b) if the law practice will not be calculating<br />

legal costs in accordance with an applicable<br />

scale of costs—that another law practice<br />

may calculate legal costs in accordance with<br />

the scale; and<br />

c) the client’s right to—<br />

(i) negotiate a costs agreement with the law<br />

practice; and<br />

ii) receive a bill from the law practice; and<br />

(iii) equest an itemised bill after receipt of a<br />

lump sum bill; and<br />

(iv) be notified under clause 17 of any<br />

substantial change to the matters<br />

disclosed under this clause; and<br />

(d) an estimate of the total legal costs if<br />

reasonably practicable or, if that is not<br />

reasonably practicable, a range of estimates<br />

of the total legal costs and an explanation<br />

of the major variables that will affect the<br />

calculation of those costs; and<br />

(e) details of the intervals (if any) at which the<br />

client will be billed; and<br />

(f) the rate of interest (if any) that the law<br />

practice charges on overdue legal costs,<br />

whether that rate is a specific rate of interest<br />

or is a benchmark rate of interest (as<br />

referred to in subclause (2)); and<br />

(g) if the matter is a litigious matter, an<br />

estimate of—<br />

(i) the range of costs that may be recovered<br />

if the client is successful in the litigation;<br />

and<br />

(ii) the range of costs the client may<br />

be ordered to pay if the client is<br />

unsuccessful; and<br />

(h) the client’s right to progress reports in<br />

accordance with clause 19; and<br />

(i) details of the person whom the client<br />

may contact to discuss the legal costs;<br />

and<br />

(j) the following avenues that are open to the<br />

client in the event of a dispute in relation to<br />

legal costs:<br />

(i) raising the matter with the practice;<br />

(ii) adjudication of costs under Part 7;<br />

(iii) the setting aside of a costs<br />

agreement under clause 30;<br />

(iv) if the client believes there has been<br />

overcharging—making a complaint<br />

to the Commissioner; and<br />

(k) any time limits that apply to the<br />

taking of any action referred to in<br />

paragraph (j); and<br />

(l) that the law of this State applies to legal<br />

costs in relation to the matter; and<br />

(m) information about the client’s right—<br />

(i) to accept under a corresponding<br />

law a written offer to enter into an<br />

agreement with the law practice that<br />

the corresponding provisions of<br />

the corresponding law apply to the<br />

matter; or<br />

(ii) to notify under a corresponding law<br />

(and within the time allowed by the<br />

corresponding law) the law practice<br />

in writing that the client requires<br />

the corresponding provisions of the<br />

corresponding law to apply to the<br />

matter.<br />

(2) For the purposes of subclause (1)(f), a<br />

benchmark rate of interest is a<br />

rate of interest for the time being equal<br />

to or calculated by reference to a rate of<br />

interest that is specified or determined<br />

from time to time by an ADI or another<br />

body or organisation, or by or under other<br />

legislation, and that is publicly available.<br />

(3) The regulations may make provision for or<br />

with respect to the use of benchmark rates<br />

30<br />

THE BULLETIN <strong>February</strong> <strong>2018</strong>


GET IN ON THE ACT<br />

of interest, and in particular for or with<br />

respect to permitting, regulating or preventing<br />

the use of particular benchmark rates or<br />

particular kinds of benchmark rates.<br />

(4) For the purposes of subclause (1)(g), the<br />

disclosure must include—<br />

(a) a statement that an order by a court<br />

for the payment of costs in favour<br />

of the client will not necessarily cover<br />

the whole of the client’s legal costs;<br />

and<br />

(b) if applicable, a statement that<br />

disbursements may be payable by<br />

the client even if the client enters a<br />

conditional costs agreement.<br />

(5) A law practice is taken to have complied<br />

with the requirement to disclose the details<br />

referred to in subclause (1)(c)(i) to (iii),<br />

(h), (j), (k) and (m) if it provides a<br />

written statement in or to the effect of a<br />

form prescribed by the regulations for the<br />

purposes of this subclause at the same time<br />

as the other details are disclosed as required<br />

by this clause.<br />

(6) A form prescribed for the purposes of<br />

subclause (5) may, instead of itself<br />

containing details of the kind referred to<br />

in that subclause, refer to publicly accessible<br />

sources of information (such as an Internet<br />

website) from which those details can be<br />

obtained.<br />

(7) The regulations may—<br />

(a) require the Society to develop a<br />

statement of the relevant details and<br />

to revise it as necessary to keep it up<br />

to date; and<br />

(b) require the Society to make the<br />

statement publicly available in the<br />

prescribed manner.<br />

THE AUSTRALIAN SOLICITORS’<br />

CONDUCT RULES<br />

Practitioners are further reminded that<br />

Conduct Rule 7 requires practitioners<br />

to provide clients with clear and timely<br />

advice to understand the relevant legal<br />

issues and to make informed choices about<br />

action to be taken and also to inform the<br />

client of alternatives to fully contested<br />

adjudication. 1<br />

GENERAL APPLICATION<br />

Gino Dal Pont, in his book ‘lawyers’<br />

professional responsibility, 6th Edition,<br />

Thomson Reuters, 2017 confirms that<br />

costs disclosure must be in language that<br />

the client will understand clearly setting<br />

out what the client’s exposure might be. 2<br />

Dal Pont further states that the fairness<br />

requirement reflects that the relationship<br />

between lawyer and client should not be<br />

taken advantage of and the lawyer should<br />

not be benefitting from an agreement into<br />

which the client has been induced as a<br />

result of relying on the lawyer. 3<br />

This would necessarily involve a full<br />

and frank explanation of costs exposure<br />

in the matter, ensuring that the client has<br />

full and complete understanding of how<br />

this course of action will affect him/her<br />

financially.<br />

CONCLUSION<br />

The clear and overriding theme is that<br />

the client must always know and not be<br />

caught by surprise. Costs estimates in<br />

litigation can sometimes be a bit of a<br />

moving feast depending on how the matter<br />

progresses. It is therefore crucial for the<br />

initial (win /lose) costs/ recovery of costs<br />

estimates to be provided, the client to be<br />

kept up to date with the progress of the<br />

matter and being advised of any changes<br />

in circumstances and how, if at all, it could<br />

affect the client’s cost exposure.<br />

Endnotes<br />

1 Australian Solicitors Conduct Rules, Rule 7.<br />

2 GE Dal Pont, Lawyers’ professional<br />

responsibility, 6th Edition, Thomson Reuters,<br />

2017, 468 [14.15].<br />

3 GE Dal Pont, Lawyers’ professional<br />

responsibility, 6th Edition, Thomson Reuters,<br />

2017, 494 [14.170].<br />

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SPEECH<br />

The role of the Attorney General<br />

& the challenges of riding the<br />

‘law & order tiger’<br />

THE HON CHRIS SUMNER AM<br />

Former Attorney General, The<br />

Hon Chris Sumner AM, spoke<br />

at the Law Society Senior<br />

Practitioners’ and Honorary<br />

Member’s Luncheon on 17<br />

October last year about the<br />

unique role of the Attorney<br />

General, and the inevitable<br />

tension between promoting<br />

Government policy and<br />

upholding the rule of law that<br />

the Attorney General of the day<br />

must negotiate.<br />

thought I would review some of<br />

I the issues and controversies I<br />

faced as Attorney-General many of which<br />

remain current.<br />

On my first appointment in 1979 I<br />

received a package of materials sent to<br />

me by Ian Dow (of the firm Knox and<br />

Hargraves).The package contained articles<br />

about the role of the Attorney General<br />

which he had collected. Why he sent them<br />

to me I do not know. What is important<br />

is that there is an important body of law,<br />

convention and practice attached to the<br />

office expounded on in more detailed<br />

texts written by Dr J Edwards on ‘the Law<br />

Officers of the Crown’. 1<br />

Whatever modifications have been made<br />

in the colonial context it remains the case<br />

that the holder of the office has special<br />

responsibilities in government. This is the<br />

case even though the Attorney General in<br />

Australia is usually a member of Cabinet<br />

and not just an MP as is the case in the<br />

UK. Despite this there are certain decisions<br />

which are not the subject of Cabinet<br />

direction, including in relation to criminal<br />

prosecutions. This was understood and<br />

respected by my cabinet colleagues. If<br />

32 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

possible, I think the Attorney General<br />

should be an admitted legal practitioner as<br />

that position carries with it certain ethical<br />

obligations and responsibilities to the<br />

law and the courts. I would also observe<br />

that having an Attorney General outside<br />

Cabinet does not avoid controversy as we<br />

saw in the UK when Lord Goldsmith, the<br />

Attorney General in the Blair Government,<br />

is said to have changed his view on the<br />

legality of the 2003 Iraq invasion.<br />

An important role is the recommending<br />

of judicial appointments to Cabinet. This<br />

achieves appropriate democratic input<br />

into the process. I don’t think there is any<br />

enthusiasm in Australia to directly involve<br />

the Parliament as occurs in the US. One<br />

of the recommendations I made was for<br />

Elliott Johnston. Merit was not in doubt<br />

but there was some trepidation because of<br />

the fierce controversy only 15 years before<br />

about his nomination for appointment as<br />

QC because of his political views. Cabinet<br />

was supportive. Now for the tricky part I<br />

thought. David Wicks was the President<br />

of the Law Society and not one known<br />

for his radical views. “Wonderful” he said.<br />

“Should have happened years ago”. How<br />

easy is this I thought. The appointment was<br />

greeted with almost universal approval by<br />

the profession and community. A sublime<br />

moment when for once doing the right<br />

thing delivered a political dividend.<br />

There has been some recent commentary<br />

from the Chief Justice and others that<br />

Attorneys-General no longer see their role<br />

as defending the Courts. I am not sure that<br />

it was ever the practice for an Attorney<br />

General to defend every court decision<br />

made no matter what the circumstances.<br />

The Attorney or other Law Officers<br />

have always represented the Crown<br />

which is a litigant. I was responsible for<br />

introducing Crown appeals in criminal<br />

matters which saw the Attorney directly<br />

challenge Court decisions. I also (with a<br />

little encouragement from Chief Justice<br />

King) introduced the independent Courts<br />

Administration Authority (which followed<br />

the earlier initiative to remove magistrates<br />

from the public service). These measures<br />

enshrined the independence of the<br />

judiciary and a consequence of this was<br />

that the Courts would need to not only run<br />

the courts administratively but also to take<br />

greater measures to explain their decisions.<br />

Chief Justices Doyle and Kourakis have<br />

recognised this. This does not absolve an<br />

Attorney General from responsibility. The<br />

Attorney General should defend the courts<br />

- not every decision, but certainly there<br />

is an important need for explanation and<br />

support for the role of independent courts<br />

and the rule of law to a proper functioning<br />

democracy.<br />

One area in which my views have been<br />

misunderstood relates to the emergence of<br />

a separate bar within the fused profession.<br />

I was never opposed to legal practitioners<br />

deciding to practice only as barristers but I<br />

did not support this turning into a legal or<br />

factual division which privileged barristers<br />

who chose this mode of practice over<br />

others who may have preferred to conduct<br />

litigation within a firm of barristers and<br />

solicitors as had traditionally been the case.<br />

And it’s not that the traditional system<br />

produced dud jurists as mention of the<br />

names of Bray, King, Zelling, Bright,<br />

Mitchell to name just a few will attest.<br />

SA has a very flexible system – a legal<br />

practitioner can practice as a barrister and<br />

a solicitor on their own or in a firm and<br />

with or without a trust account. A fused<br />

legal profession is in the public interest<br />

and in an era of increasing concern about<br />

access to and the cost of justice it would be<br />

a retrograde step to in any way formalise a<br />

division of the profession.<br />

It was in this area that I had my only<br />

serious disagreement with Chief Justice<br />

King. This was over the undertaking he


SPEECH<br />

South Australian Attorney-Generals such as Robin Milhouse (left), Chris Sumner, Trevor Griffin and current office holder John Rau, have put their unique stamp on the<br />

role of first legal officer of the State.<br />

required that QC/SCs should undertake<br />

not to practice in a firm as had traditionally<br />

been permitted. Legislation was passed to<br />

render an undertaking of this kind invalid<br />

and this he countered with an alternative<br />

undertaking to the effect that if a QC/SC<br />

continued to practice in a firm then they<br />

were seriously restricted in the way they<br />

could use the title. To me this seemed like<br />

an artificial device to avoid the effect of<br />

invalidating the original undertaking as it<br />

was unlikely that anyone would agree to take<br />

silk if they were restricted in the way the<br />

title could be used. There is I think still a<br />

Supreme Court Rule to this effect which is<br />

not really acceptable. The important point<br />

is that this undertaking has reinforced the<br />

separation of the profession and privileges<br />

members of the separate bar in terms of<br />

judicial appointment. I think the pool for<br />

judicial appointments should be as wide<br />

as possible and not so restricted. Being a<br />

barrister in an adversarial system does not<br />

necessarily translate into the attributes of a<br />

good judge. Learning in the law is important<br />

but so is personal aptitude including an<br />

understanding of society and the human<br />

condition as well as sense of fairness.<br />

The other controversy which erupted<br />

over legislation I had introduced was in<br />

the Nemer case. The Director of Public<br />

Prosecutions Act of 1992 includes a<br />

power for the Attorney General to direct<br />

the DPP. In accordance with established<br />

practice the legislation made clear that this<br />

was a decision for the Attorney and not<br />

the cabinet or government. Nemer shot<br />

the victim who was going about the lawful<br />

business of delivering morning newspapers<br />

which resulted in the loss of his eye. Plea<br />

negotiations resulted in the charge being<br />

reduced to endangering life and a good<br />

behaviour bond sentence imposed. The<br />

Attorney-General directed the DPP to<br />

appeal which was successful resulting in<br />

a head sentence of 4 years and 9 months<br />

(and a non- parole period of 1 year and<br />

9 months) which reflected the obvious<br />

seriousness of the offence. The defence<br />

challenged the validity of the direction.<br />

The Law Society took the view that<br />

the Attorney-General should not have<br />

this power or that it shouldn’t be used in<br />

individual cases. There was an exchange<br />

of learned articles in the Bulletin where<br />

I took the opposite view and defended<br />

the legislation. There was considerable<br />

confusion about the separation of powers<br />

doctrine. The maintenance of security<br />

and public order and the investigation and<br />

prosecution of offenders is quintessentially<br />

an executive government function. The<br />

citizenry including victims of crime accept<br />

that in civil society the state will perform<br />

this function in lieu of private vigilante<br />

action and taking the law into their own<br />

hands. It is an essential part of the deal (or<br />

compact) that the community be satisfied<br />

the measures taken by the Crown, the state<br />

or the government (however you wish to<br />

describe the executive) will keep them as<br />

safe as practicable. The police are part of<br />

the executive and can be directed by the<br />

government of the day. The constitutional<br />

propriety of this was established in the<br />

Vietnam Moratorium Royal Commission in<br />

1972 by Sir Charles Bright. The safeguard<br />

is that any direction should be tabled in<br />

Parliament. In a similar way the prosecution<br />

of offenders is constitutionally a function<br />

of the executive, it is certainly not part of<br />

the judicial role. Democratic accountability<br />

for this function is secured by the Attorney<br />

General having ultimate responsibility<br />

for prosecution policy and being able to<br />

direct the DPP, any direction to be made<br />

transparent by being tabled in Parliament,<br />

thus ensuring that the Attorney can provide<br />

at least some level of accountability to the<br />

Parliament for this function.<br />

For those opposed to this approach I<br />

pose the question of why the DPP alone<br />

of any public official should be immune<br />

from having their decisions reviewed. It is<br />

clear enough that a decision to prosecute is<br />

reviewed by a trial and subsequent appeal<br />

rights. However, what happens when the<br />

DPP makes a mistake by declining to<br />

prosecute or agreeing to an inappropriate<br />

charge reduction or agreement with the<br />

defence that the prosecution would not<br />

oppose a custodial sentence. Apart from<br />

the current power vested in the Attorney-<br />

General there is no vehicle for a mistake<br />

of this kind to be corrected. I have seen<br />

suggestions that such a decision could<br />

be the subject of judicial review by, for<br />

instance, an aggrieved victim. Or that an<br />

independent panel could be established<br />

to which members of the public or<br />

victims could take their case that the<br />

DPP had failed in its duty. I think such<br />

proposals would produce their own set of<br />

problems and would not support them.<br />

The Westminster system has in its rather<br />

quaint way produced a situation where the<br />

ultimate responsibility for prosecutions<br />

rests with an elected official who is part of<br />

executive government but immune from<br />

direction by the government of the day<br />

while according to the DPP substantial<br />

operational independence. I think both<br />

officers properly apprised of the relevant<br />

principles and powers relating to each of<br />

them can benefit from the dialogue and<br />

advice which they can impart to each other.<br />

The power to direct will be used sparingly<br />

but is a fail - safe mechanism to ensure that<br />

any egregious errors made by the DPP can<br />

be corrected. In the Nemer case I think<br />

there were some aspects of the political<br />

debate that were unfortunate and it would<br />

have been better if the Attorney-General<br />

had inserted himself into it to more fully<br />

explain the relevant powers and principles<br />

that were involved. But in the end the<br />

correct result was arrived at, an error was<br />

corrected and a potential miscarriage of<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 33


SPEECH<br />

justice for the general community and the<br />

victim averted. The power to direct was<br />

upheld by the Supreme Court and the High<br />

Court which in my view as proponent of<br />

the legislation is what was intended.<br />

I don’t think the legal profession<br />

completely understands how difficult the<br />

law and order tiger is to ride for people in<br />

elected office. But even so, it is important<br />

for the Attorney-General to maintain a<br />

stance of reasonable detachment and<br />

reason within government, whether dealing<br />

with sentencing or as has been highlighted<br />

more recently in the Keogh case in dealing<br />

with petitions to the Governor to refer<br />

criminal cases back to the Supreme Court.<br />

This role is now diminished as groundbreaking<br />

legislation introduced by John Rau<br />

now provides a direct route for a convicted<br />

person to have their cases reviewed by<br />

the Supreme Court in certain defined<br />

circumstances of new evidence and where<br />

a miscarriage of justice may have occurred.<br />

It will be interesting to see what the High<br />

Court in the van Beelan case makes of<br />

this (Ed note: The High Court dismissed<br />

van Belelen’s appeal against his murder<br />

conviction). The Splatt Royal Commission<br />

that I recommended also did some good<br />

work in dealing with forensic evidence and<br />

leading to it being collected and examined<br />

independently of the police – but perhaps<br />

not enough to satisfy the current critics of<br />

our forensic services.<br />

On the law and order front what we<br />

tried to do was put together a coherent<br />

package of measures involving greater<br />

support for victims, sentencing reforms<br />

with imprisonment as a penalty of last<br />

resort, proper rehabilitation measures and<br />

importantly a community crime prevention<br />

policy which tried to acknowledge that<br />

crime rates were not amenable to reduction<br />

just by custodial sentences. This was<br />

broadly supported by the Opposition and<br />

my successor Trevor Griffin. I am pleased<br />

to see that after a lapse under the Rann<br />

government there is an attempt by the<br />

Law Society and others to revive the crime<br />

prevention approach even if it is now<br />

rebadged as justice reinvestment.<br />

I would like to say how much I enjoyed<br />

and appreciated working with the lawyers<br />

employed by the Crown. They are engaged<br />

34 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

in an important public service and I am<br />

pleased to see suggestions to privatise<br />

or outsource the work have rightly been<br />

resisted in SA. I courted some controversy<br />

when Cathy Branson was appointed<br />

Crown Solicitor in 1985 - the first woman<br />

to be appointed CEO of a government<br />

department in SA. She was able to entice<br />

John Doyle to take up the position of<br />

Solicitor General who with Brad Selway<br />

constituted a formidable constitutional<br />

team. It is insufficiently recognised that<br />

their efforts in the High Court resulted<br />

in a reinterpretation of s 92 (which<br />

hardly ever provokes controversy these<br />

days). With my support and over the<br />

objections of such notably forceful figures<br />

as Victorian Premier Jeff Kennett they<br />

also lead the way in trying to get a more<br />

limited definition of excise adopted. Had<br />

this been successful it would have allowed<br />

the States to impose a GST type tax and<br />

helped to correct the fiscal imbalance<br />

between the Commonwealth and the<br />

States. Unfortunately, by a narrow margin<br />

this failed.<br />

Finally, I like to think I enjoyed good<br />

relations with the Law Society even<br />

though, for potential conflict reasons, I<br />

did not regard it as appropriate to actively<br />

participate in the Council’s deliberations.<br />

Unlike the present Attorney I was not<br />

antagonistic to submissions produced<br />

from your word processor, matters I<br />

see addressed by (then) President Tony<br />

Rossi in the September (2017) Bulletin. I<br />

am often pleased to see reference to the<br />

success of the Litigation Assistance Fund<br />

as an aspect of enhancing access to justice.<br />

It is little known again that it fell to me<br />

to take the Law Society’s side in agreeing<br />

to make the funds available from the<br />

Guarantee Fund to establish the Fund over<br />

the Legal Services Commission which also<br />

wanted the money.<br />

Access to and the cost of justice were<br />

major issues in the 1980s and remain so<br />

today even to a greater extent. B<br />

Endnotes<br />

1 see also Hon L J King AC, QC ‘The Attorney-<br />

General, Politics and the Judiciary. Paper<br />

delivered to the Fourth Annual Colloquium<br />

of the Judicial Conference of Australia in<br />

November 1999’.<br />

CPD Events<br />

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Forum<br />

15 and 16 <strong>February</strong> <strong>2018</strong><br />

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21 <strong>February</strong> <strong>2018</strong><br />

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22 <strong>February</strong> <strong>2018</strong><br />

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27 <strong>February</strong> <strong>2018</strong><br />

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16 March <strong>2018</strong><br />

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POLITICS AND THE LAW<br />

The South Australian Parliament<br />

and Parliamentary Privilege<br />

JAN DAVIS, CLERK OF THE LEGISLATIVE COUNCIL<br />

Australian laws on Parliamentary<br />

Privilege have largely been derived<br />

from the laws of England regarding<br />

the privileges of the Houses of the UK<br />

Parliament and more particularly, those of<br />

the House of Commons and its Members.<br />

The sources of the English laws are to be<br />

found chiefly in ancient practice asserted<br />

by Parliament and accepted over time<br />

by the Crown and the courts of law, and<br />

custom of Parliament. English laws are<br />

developed by the statutes enacted by the<br />

English Parliament such as the Bill of Rights<br />

1689 and the common law developed<br />

by the Courts. By Imperial Statute 13<br />

& 14 Vic C59, the Australian colonies<br />

were empowered to enact legislation<br />

providing for the establishment of<br />

bicameral legislatures. The Constitutions<br />

for the Colonies of South Australia and<br />

Victoria enacted in the 1850s, provided<br />

that the Houses of their Parliaments and<br />

their Members should be co-extensive<br />

with those of the House of Commons<br />

and its Members, as of a specified date.<br />

The English laws so transported could<br />

be modified by later statutes. New South<br />

Wales is the only Australian State in<br />

which the laws of parliamentary privilege<br />

continue to be based mainly on common<br />

law (Enid Campbell, Parliamentary Privilege<br />

[2003, pp2-4]).<br />

In 1858, shortly after attaining<br />

responsible government in the province of<br />

South Australia, there was enacted specific<br />

legislation delineating the penal jurisdiction<br />

of the Houses of Parliament with the<br />

power to punish for contempt limited<br />

to defined clauses. The South Australian<br />

Parliament subsequently repealed this<br />

Act and substituted legislation, which<br />

adopted for the Houses of Parliament all<br />

the powers, privileges and immunities of<br />

the Commons House and Members and<br />

committees thereof as of 1 July, 1856. This<br />

was later qualified in 1888 when legislation<br />

provided that no member of the South<br />

36 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

Australian Parliament should be entitled<br />

to claim any of the privileges to which he<br />

might be entitled under the Act of 1858<br />

against any process issued by a court of<br />

law within the colony, except that no writ<br />

of capias ad satisfaciendum should be put into<br />

effect against a member during any session<br />

of Parliament or within 10 days before<br />

Parliament meets, and that no member<br />

should be liable to any penalty or process<br />

for non-attendance as a witness in court<br />

when his non-attendance should be due<br />

to his attendance in Parliament. This was<br />

subsequently repealed and provision made<br />

in the Constitution Act 1934 that:<br />

9. The Parliament may, by any Act,<br />

define the privileges, immunities,<br />

and powers to be held, enjoyed, and<br />

exercised by the Legislative Council<br />

and House of Assembly, and by<br />

the members thereof respectively:<br />

Provided that no such privileges,<br />

immunities, or powers shall exceed<br />

those held, enjoyed, and exercised<br />

on the twenty-fourth day of<br />

October, eighteen hundred and fiftysix,<br />

by the House of Commons, or<br />

the members thereof.<br />

38. The privileges, immunities, and<br />

powers of the Legislative Council<br />

and House of Assembly respectively,<br />

and of the committees and<br />

members thereof respectively, shall<br />

be the same as but no greater than<br />

those which on the twenty-fourth<br />

day of October, 1856, were held,<br />

enjoyed, and exercised by the House<br />

of Commons and by the committees<br />

and members thereof, whether such<br />

privileges, immunities, or powers<br />

were so held, possessed, or enjoyed<br />

by custom, statute, or otherwise.<br />

The earlier provision enacted in 1888 now<br />

appears as Section 39 in the Constitution Act<br />

1934 though, in slightly different form.<br />

Section 38 of the Constitution Act 1934<br />

restricts the South Australian Parliament<br />

to not exceeding the powers, etc. of the<br />

House of Commons as at 24 October,<br />

1856, which was the date of the enactment<br />

of the Constitution Act on the attainment<br />

of responsible Government. Therefore,<br />

should the UK Parliament change its<br />

privileges, it would seem that there would<br />

be no effect on the South Australian<br />

Parliament. As the majority of privileges<br />

of the House of Commons are enjoyed by<br />

common law, or custom, it is not easy to<br />

determine with certainty, 160 or more years<br />

later, what privileges were enjoyed at the<br />

earlier date. Halsbury’s Laws of England (1st<br />

Ed, 1912) lists privileges of both Houses,<br />

at that time, as freedom from arrest,<br />

exemption from jury service, protection<br />

of witnesses before Parliament or any<br />

parliamentary committee and of counsel,<br />

solicitors etc. engaged upon business of<br />

Parliament from arrest or any other legal<br />

action, freedom of speech, control over<br />

publication of proceedings and power to<br />

exclude strangers during parliamentary<br />

sittings.<br />

E G Blackmore, in Practice of the Legislative<br />

Council (2nd Ed, 1915, p41), stated -<br />

“It is obvious that a legislative body must, in<br />

order to the efficient discharge of its functions,<br />

be invested with power to punish offenders, to<br />

exercise discipline over its own Members, to<br />

enforce obedience to its orders, and to prevent<br />

interference with its proceedings.”<br />

Both the South Australian and<br />

Victorian Parliaments, by virtue of their<br />

Constitutions, have the same punitive<br />

powers then possessed by the House of<br />

Commons as at 24 October, 1856 (SA)<br />

and 1 July, 1855 (Vic). This power has<br />

been seen as the keystone of Parliamentary<br />

privilege. Parliament declares what is<br />

a breach of privilege and punishes by<br />

censure and commitment, with the<br />

public having no redress in a Court. A


POLITICS AND THE LAW<br />

scandalous or libellous reflection on the<br />

proceedings of the House or on a Member,<br />

disobedience to orders of the House,<br />

tampering with a witness, interfering with<br />

the Officers of the House in the execution<br />

of their duty and attempts to influence the<br />

decision of a Committee are considered<br />

breaches of privilege.<br />

It is a necessary privilege of a legislative<br />

body that it should have the right to<br />

summon and examine witnesses and<br />

compel the production of papers and, if<br />

a witness is in custody, to cause him to be<br />

produced as required. Privilege extends to<br />

protect witnesses, petitioners and others<br />

while in attendance at Parliament from<br />

arrest and from the consequences of any<br />

statement made by them.<br />

In Odgers in Australian Senate Practice<br />

(12th Ed, 2008, p65) it is explained that the<br />

“rationale of treating defamation of the Houses<br />

or of their Members as a contempt was not as<br />

was some time supposed, to protect the dignity and<br />

good name of Parliament and its Members but to<br />

prevent public attacks which, by undermining the<br />

respect due to Parliament as an institution and<br />

diminish its authority, tend to obstruct or impede<br />

the Houses in the performance of their functions”.<br />

In 1870, Serjeant-Major Patrick McBride<br />

was sent to prison for one week for<br />

sending a letter to a member of the<br />

Legislative Council accusing him of having<br />

lied to the Council. Mr John Baker, a<br />

Member of the Legislative Council, read<br />

to the Council an “abusive” letter which<br />

he had received from a Mr McBride (a<br />

Serjeant-Major, R.A.), as follows:<br />

“Sir - I regret to hear you state what is a<br />

deliberate and repeated and base lie, on your<br />

part, stating Mr H.H.B. Strangways is or<br />

was my lawyer on any matter connected with<br />

the Volunteer Force of this Colony. Such a<br />

statement is a base calumny against the Hon.<br />

Gentleman.<br />

I am, Sir, your obedient servant, McBride.”<br />

The Hon J Baker<br />

The letter was forthwith, on motion,<br />

declared a breach of the privileges of<br />

Parliament. At a subsequent sitting the<br />

President reported that he had received<br />

from Serjeant-Major McBride the following<br />

letter, apologising that he had committed a<br />

breach of privilege:<br />

Privilege extends to protect witnesses, petitioners<br />

and others while in attendance at Parliament from<br />

arrest and from the consequences of any statement<br />

made by them.<br />

“Pennington Terrace, North Adelaide, 16th<br />

September 1870.<br />

The Honourable the President of the<br />

Legislative Council.<br />

Sir - It was with great regret that I found,<br />

on reading the Register of the 14th of this<br />

month, that the Council has resolved that I<br />

had, in forwarding a letter to the Honourable<br />

Mr. Baker, ‘committed a breach of the<br />

privileges of Parliament,’ and ‘that some<br />

members of the Council considered that I had<br />

offered an insult to the Council generally’. I<br />

assure you, Sir, as President of the Council,<br />

that nothing could be further from my intention<br />

than to commit any breach of the privileges<br />

of Parliament, nor would I willingly insult a<br />

body of gentlemen for whom I entertain a high<br />

respect on account of the individual action of<br />

one member of that body; I beg to express my<br />

extreme regret that I should have done anything<br />

that should be capable of such a construction as<br />

that arrived at by the Council, and to request<br />

that you will read this letter to the Council.<br />

I am your obedient servant,<br />

P. McBride.”<br />

However, despite the apology he was at<br />

once “adjudged guilty of contempt of<br />

the Council” and committed to Her<br />

Majesty’s Gaol for seven days on the<br />

warrant of the President. On the expiry<br />

of the seven days, the Council ordered<br />

“that no fees be demanded from Serjeant-<br />

Major McBride”.<br />

Enid Campbell in Parliamentary Privilege in<br />

Australia (1966, p129) argued:<br />

“This is a good illustration of the kind of<br />

case in which legislative assemblies ought not<br />

to intervene at all. If anyone is defamed, it is<br />

not members of parliament collectively, but an<br />

individual member who is free to seek amends<br />

in the ordinary courts. Protection of the<br />

reputations of individual members is not the<br />

business of the Houses of Parliament, and if<br />

they extend their punitive jurisdiction thus far,<br />

they expose themselves to the charge not only<br />

of usurping the jurisdiction of the courts, but<br />

of dispensing justice to their members on the<br />

cheap. If jurisdiction is usurped in this way,<br />

the citizen who is made to suffer as a result is<br />

without a remedy. No writ of prohibition or<br />

injunction could issue to prevent either House<br />

of Parliament proceeding with the case, nor<br />

could the House’s judgement be upset by appeal<br />

or certiorari.”<br />

Likewise, Odgers (p65) held that “To<br />

constitute a contempt, a reflection upon an<br />

individual member had to relate to the member’s<br />

capacity as a member and tend to obstruct the<br />

performance of the member’s duties”. It should<br />

not be the business of the Houses to<br />

become involved in the punishment<br />

of defamation as a contempt, which it<br />

is argued, does not impede Parliament<br />

or its Committees going about their<br />

business.<br />

In 1898 Lord Kilmorey, who was a<br />

stranger in South Australia but was<br />

promoting the Outer Harbor Bill, was<br />

accused of having sent certain Members<br />

of the Council circulars that reflected on a<br />

Report of the Standing Orders Committee.<br />

The matter was referred to a Select<br />

Committee, which reported that the circular<br />

was a breach of privilege; but that, in view<br />

of Lord Kilmorey having withdrawn and<br />

apologised, the matter did not proceed any<br />

further. The Council adopted the Report of<br />

the Select Committee.<br />

It was not until 1968 that this issue<br />

arose again. A witness before the Select<br />

Committee on the Scientology Bill 1968<br />

brought along a prepared statement to<br />

the Committee, the opening paragraph<br />

of which referred to certain misgivings<br />

which the witness desired resolved before<br />

proceeding with his evidence. The first<br />

referred to protection afforded him in<br />

respect of evidence tendered by him and<br />

the Chairperson quoted LC Standing<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 37


POLITICS AND THE LAW<br />

Order No. 437 which was accepted by<br />

the witness. The second referred to the<br />

Chairperson’s refusal to see him “some<br />

weeks ago because as he stated over the<br />

telephone, he had ‘made up his mind on<br />

the matter’ and that [he] would be better<br />

advised to seek somebody else who had<br />

not made this decision. [He went on<br />

to request] … the reassurance of the<br />

Committee that the hearing of evidence<br />

tendered will be examined in a completely<br />

impartial manner and not subject to bias in<br />

any way, shape or form”.<br />

The Chairperson gave the assurance<br />

that the Committee would look at this<br />

matter impartially. Further, the position<br />

was explained in relation to charges made<br />

against Members of the Committee, in<br />

that “if any information comes before a<br />

Committee that charges any Member of<br />

the Council, the Committee shall only<br />

direct that the Council be acquainted with<br />

the matter of such information, without<br />

proceeding further thereupon”.<br />

Subsequently the witness wrote to the<br />

Secretary of the Select Committee and<br />

“formally” charged the Chairperson with<br />

being unduly biased etc. The Committee<br />

agreed upon a Special Report to the<br />

Council on the matter “in order that the<br />

Council may take such steps as it shall<br />

think fit”. Other witnesses forwarded<br />

correspondence to the Committee<br />

indicating that they too were unable to<br />

give evidence in support of Scientology<br />

as they had been forced to the view that<br />

the Chairperson was biased, but offering<br />

to reconsider their positions if the<br />

Chairperson should resign.<br />

The Special Report drew attention to<br />

the letter from the witness which was<br />

addressed to the Clerk of the Legislative<br />

Council and stated:<br />

“that as such letter appears to reflect upon the<br />

conduct of the Chairperson, the Committee<br />

has agreed to report the same to the Council<br />

in accordance with Standing Order No. 399<br />

and that the letter and relevant Minutes of<br />

Evidence be Tabled with this Special Report in<br />

order that the Council may take such steps as it<br />

shall think fit”.<br />

After the Special Report was Tabled<br />

(5 November, 1968), the Council resolved<br />

to summon the Witness to appear at the<br />

Bar of the Council on the next Tuesday<br />

of sitting “to answer such questions as the<br />

38 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

Council may see fit to put to him regarding<br />

his letter concerning the Chairperson of<br />

the Select Committee on the Scientology<br />

(Prohibition) Bill 1968”. On the next<br />

sitting Tuesday (12 November, 1968), the<br />

Clerk was required to read the Resolution<br />

concerning the Special Report of the Select<br />

Committee and Black Rod was required to<br />

ascertain whether the witness was present.<br />

Having so determined, the President<br />

ordered that the witness be brought to the<br />

Bar. He was questioned as to whether he<br />

was the person mentioned in the Minutes<br />

of Evidence and whether he signed the<br />

letter attached to the Special Report. After<br />

the witness confirmed that he was the<br />

said person, he was asked to withdraw,<br />

following which a motion was moved:<br />

“That in the opinion of the House the<br />

writing and sending of the letter was highly<br />

improper conduct and the House, without<br />

proceeding to the question whether that conduct<br />

constitutes a contempt of the House, issues<br />

a warning to …(the witness) to refrain from<br />

a repetition of such conduct in the future<br />

which could be attended with most serious<br />

consequences”.<br />

Considerable debate occurred with the<br />

then four Labor Members opposing the<br />

motion. The motion was carried on strict<br />

party lines. The witness was then recalled<br />

to the Bar and the President informed him<br />

of the Resolution and added:<br />

“To deliberately attribute to the Chairman of<br />

a Select Committee a lack of impartiality is a<br />

contempt of the Legislative Council, which, on<br />

being duly established, can be severely punished.<br />

Honourable members, when individually<br />

engaged on official duties both inside and<br />

outside the Chamber, are obliged to make up<br />

their minds and speak out as they think fit, but<br />

when sitting as members of a Select Committee<br />

they are, whatever they may have said before,<br />

under a strict duty to be impartial, and they<br />

invariably discharge their duties. That concludes<br />

the proceedings, and you (the witness) may<br />

withdraw”.<br />

This was the last time that such action<br />

occurred. At the time, the summoning<br />

before the Bar did not reflect well on the<br />

Upper House and was treated so in the<br />

local press. Subsequently, Committees and<br />

Members have always been counselled<br />

against proceeding thus in the public forum.<br />

In 1987, a Member of the House of<br />

Assembly made certain allegations in<br />

Parliament. Those allegations implied that<br />

a member of the public had sought and/<br />

or received favoured treatment because of<br />

close association with the former Labor<br />

Government. Subsequently, a Newspaper<br />

published a letter written by this member<br />

of the public in which he disputed the<br />

allegations saying that they were unfounded<br />

and defamatory. The Member of<br />

Parliament then issued proceedings against<br />

this person and the Newspaper alleging<br />

that the letter was defamatory.<br />

The member of the public and the<br />

Newspaper filed their defence to that<br />

claim. The defence pleaded qualified<br />

privilege, fair comment and justification<br />

(i.e. truth). On the face of it, the defences<br />

of fair comment and justification (at least<br />

as pleaded) would require the Court to<br />

determine whether the allegations made<br />

by the Member in Parliament were true.<br />

The Court would probably also be required<br />

to inquire into the Member’s motives<br />

in making the statement. The Member<br />

of Parliament then applied to have the<br />

defences struck out as being in breach of<br />

Parliamentary privilege. He argued that<br />

the privilege was absolute and that the<br />

Court could not hear any evidence of what<br />

occurred in Parliament.<br />

The Judge accepted this argument and<br />

struck out the relevant defences. This had<br />

the effect that the member of the public<br />

a defendant faced with an action by a Member of<br />

Parliament for defamation has a right ... to crossexamine<br />

the Member of Parliament as to the facts<br />

of the statement which was made in the Parliament<br />

and to which a citizen’s response may related, the<br />

motives and even the sources of information.


POLITICS AND THE LAW<br />

and the Newspaper had no defence. This<br />

decision was appealed to the Full Court.<br />

The Attorney-General intervened and his<br />

argument can be summarised as follows:<br />

• A court cannot inquire into the truth<br />

of what is spoken in Parliament or the<br />

motive of a member when speaking in<br />

Parliament. It is doubtful whether this<br />

privilege can be waived.<br />

• A court can receive admissible evidence<br />

to prove as a fact that a particular<br />

statement was made in Parliament.<br />

Parliamentary privilege may render<br />

inadmissible some otherwise relevant<br />

evidence on this topic. However,<br />

Hansard can be received in evidence for<br />

this purpose.<br />

• Any person who is attacked by a speech<br />

in Parliament has a qualified privilege<br />

to publicly answer that attack. The<br />

qualified privilege will apply so long as<br />

the answer is a reasonable response to<br />

the attack and is not actuated by malice.<br />

The truth or otherwise of the answer<br />

need not be proved.<br />

The Attorney-General was not successful.<br />

Two Judges of the Supreme Court were<br />

of the view that in the circumstances<br />

of this case in particular, a defendant<br />

faced with an action by a Member of<br />

Parliament for defamation has a right in<br />

those circumstances to cross-examine<br />

the Member of Parliament as to the<br />

facts of the statement which was made<br />

in the Parliament and to which a citizen’s<br />

response may related, the motives and even<br />

the sources of information.<br />

Subsequent to the decision of the Full<br />

Court, the then Attorney-General sought<br />

leave to appeal to the High Court based<br />

on the same argument that he put to the<br />

Full Supreme Court. However, he later<br />

withdrew, indicating his concern that this<br />

was the worst possible case on its facts<br />

to use as a vehicle to test the extent of<br />

Parliamentary privilege. He recommended<br />

that Parliament should consider the<br />

issue of privilege unencumbered by<br />

the potentially unjust case then being<br />

considered. The Parliament could then<br />

consider whether legislation to cover<br />

privilege should be introduced.<br />

Subsequently, a Joint Committee of the<br />

Parliament was established to examine<br />

the extent of Parliamentary privilege and<br />

the means by which such privilege may be<br />

enunciated and protected in the interests<br />

of the community and the institution<br />

of Parliament. The Committee never<br />

reported. At the time, it was felt that to<br />

introduce legislation defining Parliamentary<br />

privilege may indeed limit the privileges<br />

attained by the South Australian Parliament<br />

in Section 38 of the Constitution Act 1934,<br />

which extends “the privileges, immunities and<br />

powers of the Legislative Council and House of<br />

Assembly respectively, and of the Committees and<br />

members thereof respectively, to those held by the<br />

House of Commons as at 24 October 1856”.<br />

It was not until 1999 that the then<br />

Attorney-General moved for a Sessional<br />

Standing Order according a Citizen’s<br />

Right of Reply in the Legislative Council.<br />

The Sessional Standing Order enables<br />

persons who believe that they have been<br />

adversely referred to during proceedings<br />

of the Council to request that a response<br />

be incorporated in Hansard. This has been<br />

adopted in every subsequent Session of<br />

Parliament in the Legislative Council and<br />

by the House of Assembly since 2007. B<br />

Jan Davis retired on 31 December 2017 after<br />

53 years on the Staff of the Legislative Council<br />

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<strong>February</strong> <strong>2018</strong> THE BULLETIN 39


GAZING IN THE GAZETTE<br />

4 November 2017 – 2 January <strong>2018</strong><br />

A MONTHLY REVIEW OF ACTS, APPOINTMENTS, REGULATIONS<br />

AND RULES COMPILED BY MELLOR OLSSON’S ELIZABETH OLSSON.<br />

Acts Proclaimed<br />

Local Government (Boundary Adjustment)<br />

Amendment Act 2017 (No 32 of 2017)<br />

Commencement: 1 January 2019<br />

Gazetted: 7 November 2017,<br />

No. 75 of 2017<br />

Local Government (Mobile Food Vendors)<br />

Amendment Act 2017 (No 33 of 2017)<br />

Commencement: 1 March <strong>2018</strong><br />

Gazetted: 15 November 2017,<br />

No. 76 of 2017<br />

Adoption (Review) Amendment Act 2016 (No<br />

64 of 2016)<br />

Commencement ss 4 (other than the<br />

insertion of s 3(3) into Adoption Act 1988);<br />

5(6) (other than the insertion of the<br />

definitions of party to an adoption and<br />

Registrar into Adoption Act 1988); 5(7) and<br />

(10); 6; 9(1); 14(3); 15; 17; 19 to 22; 23(1);<br />

24 to 29: 18 December 2017<br />

Gazetted: 21 November 2017,<br />

No. 77 of 2017<br />

Intervention Orders (Prevention of Abuse)<br />

(Recognition of National Domestic Violence<br />

Orders) Amendment Act 2017 (No 8 of 2017)<br />

Commencement: 25 November 2017<br />

Gazetted: 21 November 2017,<br />

No. 77 of 2017<br />

Environment Protection (Waste Reform)<br />

Amendment Act 2017 (No 45 of 2017)<br />

Commencement except<br />

Schedule 2: 28 November 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Notaries Public Act 2016 (No 42 of 2016)<br />

Commencement: 1 <strong>February</strong> <strong>2018</strong><br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Children and Young People (Oversight and<br />

Advocacy Bodies) Act 2016 (No 48 of 2016)<br />

Commencement remaining provisions:<br />

18 December 2017<br />

Gazetted: 5 December 2017,<br />

No. 79 of 2017<br />

Electoral (Legislative Council Voting and<br />

Other Measures) Amendment Act 2017<br />

(No 31 of 2017)<br />

Commencement remaining<br />

provisions: 12 December 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Land and Business (Sale and Conveyancing)<br />

(Beneficial Interest) Amendment Act 2017<br />

(No 30 of 2017)<br />

Commencement: 29 January <strong>2018</strong><br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Liquor Licensing (Liquor Review) Amendment<br />

Act 2017 (No 49 of 2017)<br />

40 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

Commencement except ss 4; 5(1) and (2);<br />

5(4) - (9); 5(11); 5(13) - (15); 5(17); 5(21)<br />

and (22); 5(24) - (26); 5(28); 6; 7; 9 to 15; 17;<br />

19; 20; 22; 23; 25 - 32; 33(1) and (2); 34 - 38;<br />

39(2); 40 - 52; 53(2); 55 - 64; 67 - 69; 73 -<br />

76; 78 - 80; 82(3); 83 - 95; 96(2); Schedule 1;<br />

Schedule 2, Part 3; Schedule 2,<br />

clause 12: 18 December 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (SACAT No 2) Act 2017<br />

(No 51 of 2017)<br />

Commencement except for Part 2; Part 4;<br />

Parts 7 to 12; Parts 14 to 16; Part 19; Part<br />

21; Parts 24 to 28; Parts 30 to 35; Parts 37<br />

and 38; Part 40; section 225; Parts 44 to 47;<br />

Part 49: 14 December 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Summary Procedure (Indictable Offences)<br />

Amendment Act 2017 (No 18 of 2017)<br />

Commencement: 5 March <strong>2018</strong><br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Surveillance Devices Act 2016 (No 2 of 2016)<br />

Commencement: 18 December 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Australian Energy Market Commission<br />

Establishment (Governance) Amendment Act<br />

2017 (No 52 of 2017)<br />

Commencement: 19 December 2017<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Biological Control (Miscellaneous) Amendment<br />

Act 2016 (No 66 of 2016)<br />

Commencement: 1 January <strong>2018</strong><br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Children and Young People (Safety) Act 2017<br />

(No 25 of 2017)<br />

Commencement ss17, 18; Chapter 4 Parts<br />

2 and 3; Chapter 5; Chapter 6 Parts 1 and 2<br />

(other than section 59); ss 67, 68; Chapter<br />

7 Part 1 (other than Division 4); Chapter 7<br />

Parts 2, 3 and 4; Chapter 7 Parts 6, 7 and<br />

9; s111; Chapter 8; Chapter 10; Chapter 11<br />

Part 2; ss 151, 152, 161; Schedule 1 Part 2<br />

clause 2(b) to (e) and clause 2A (as enacted<br />

by section 60 of Children’s Protection Law<br />

Reform (Transitional Arrangements and Related<br />

Amendments) Act 2017);<br />

Schedule 1 Part 3: 22 October <strong>2018</strong><br />

Commencement remaining<br />

provisions: 26 <strong>February</strong> <strong>2018</strong><br />

immediately after<br />

section 60 of<br />

Children’s Protection Law<br />

Reform (Transitional<br />

Provisions and Related<br />

Amendments) Act 2017<br />

comes into operation.<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Children’s Protection Law Reform (Transitional<br />

Provisions and Related Amendments) Act 2017<br />

(No 64 of 2017)<br />

Commencement ss 22, 23, 26, 60; Part 22; s<br />

149(1), 150; Part 22: 26 <strong>February</strong> <strong>2018</strong>;<br />

Commencement ss24, 25, 27-32, 33, 35-38;<br />

Parts 5, 6, 9 (except s46); s 58; Parts 11, 12,<br />

14-17, 19, 20; ss 148, 149(2),<br />

151-153: 22 October <strong>2018</strong>;<br />

Commencement remaining provisions<br />

except Parts 2, 7, 13,<br />

18 and 21: 19 December 2017;<br />

To avoid doubt, while section 60 of<br />

the Act comes into operation on<br />

26 <strong>February</strong> <strong>2018</strong>:<br />

(a) clause 2(a) of Schedule 1 Part 2 of<br />

Children and Young People (Safety) Act<br />

2017) commences on 26 <strong>February</strong><br />

<strong>2018</strong>;<br />

(b) clause 2(b) to (e) and clause 2A of<br />

Schedule 1 Part 2 of Children and Young<br />

People (Safety) Act 2017 commences on<br />

22 October <strong>2018</strong>.<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Industry Advocate Act 2017 (No 42 of 2017)<br />

Commencement: 1 January <strong>2018</strong><br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Justices of the Peace (Miscellaneous) Amendment<br />

Act 2016 (No 41 of 2016)<br />

Commencement: 19 December 2017<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Road Traffic (Roadworks) Amendment Act 2017<br />

(No 12 of 2017)<br />

Commencement: 1 June <strong>2018</strong><br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Statutes Amendment (Transport Online<br />

Transactions and Other Matters) Act 2017<br />

(No. 38 of 2017)<br />

Commencement ss 23, 26, 33(1)<br />

and (2); Sch 1: 20 March <strong>2018</strong>;<br />

Commencement remaining provisions:<br />

19 December 2017<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Acts Assented To<br />

Environment Protection (Waste Reform)<br />

Amendment Act 2017, No. 45 of 2017<br />

(amends Environment Protection Act 1993 and<br />

Motor Vehicles Act 1959)<br />

Gazetted: 15 November 2017,<br />

No. 76 of 2017


Work Health and Safety (Representative<br />

Assistance) Amendment Act 2017,<br />

No. 46 of 2017<br />

Gazetted: 15 November 2017,<br />

No. 76 of 2017<br />

Criminal Law Consolidation (Criminal<br />

Organisations) Amendment Act 2017,<br />

No. 47 of 2017<br />

Gazetted: 15 November 2017,<br />

No. 76 of 2017<br />

Police (Drug Testing) Amendment Act 2017,<br />

No. 48 of 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Liquor Licensing (Liquor Review) Amendment<br />

Act 2017, No. 49 of 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Statutes Amendment (Court Fees) Act 2017,<br />

No. 50 of 2017<br />

(amends District Court Act 1991; Magistrates<br />

Court Act 1991; Sherriff’s Act 1978; and<br />

Supreme Court Act 1935)<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Statutes Amendment (SACAT No 2) Act<br />

2017, No. 51 of 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Australian Energy Market Commission<br />

Establishment (Governance) Amendment Act<br />

2017, No. 52 of 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Statutes Amendment (Sentencing) Act 2017,<br />

No. 53 of 2017<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Statutes Amendment (Vehicle Inspections and<br />

South Eastern Freeway Offences) Act 2017, No.<br />

54 of 2017<br />

(amends Motor Vehicles Act 1959 and Road<br />

Traffic Act 1961)<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Stamp Duties (Foreign Ownership Surcharge)<br />

Amendment Act 2017, No. 55 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Health Practitioner Regulation National Law<br />

(South Australia) (Remote Area Attendance)<br />

Amendment Act 2017, No. 56 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Genetically Modified Crops Management<br />

Regulations (Postponement of Expiry) Act 2017,<br />

No. 57 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Planning, Development and Infrastructure (State<br />

Planning Policy) (Biodiversity) Amendment Act<br />

2017, No. 58 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Linear Parks (Miscellaneous) Amendment Act<br />

2017, No. 59 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Nuclear Waste Storage Facility (Prohibition)<br />

(Public Money) Amendment Act 2017,<br />

No. 60 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Extremist Material) Act<br />

2017, No. 61 of 2017<br />

(amends Criminal Law Consolidation Act 1935<br />

and Summary Offences Act 1953)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Explosives) Act 2017,<br />

No. 62 of 2017<br />

(amends Criminal Law Consolidation Act 1935<br />

and Summary Offences Act 1953)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Drink and Drug Driving)<br />

Act 2017, No. 63 of 2017<br />

(amends Harbors and Navigation Act 1993,<br />

Motor Vehicles Act 1959, Rail Safety National<br />

Law (South Australia) Act 2012 and Road<br />

Traffic Act 1961)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Children’s Protection Law Reform (Transitional<br />

Arrangements and Related Amendments) Act<br />

2017, No. 64 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Constitution (One Vote One Value) Amendment<br />

Act 2017, No. 65 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Constitution (Electoral Redistribution) (Appeals)<br />

Amendment Act 2017, No. 66 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Youths Sentenced as<br />

Adults) Act 2017, No. 67 of 2017<br />

(amends Young Offenders Act 1993; Criminal<br />

Law (Sentencing) Act 1988; Sentencing Act 2017)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Labour Hire Licensing Act 2017,<br />

No. 68 of 2017<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Terror Suspect Detention)<br />

Act 2017, No. 69 of 2017<br />

(amends Bail Act 1985; Correctional Services<br />

Act 1982; Criminal Law (High Risk Offenders)<br />

Act 2015; Police Act 1998; Young Offenders<br />

Act 1993)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Statutes Amendment (Attorney-General’s Portfolio<br />

No 3) Act 2017, No. 70 of 2017<br />

(amends Advance Care Directives Act 2013;<br />

Bail Act 1985; Construction Industry Long<br />

GAZING IN THE GAZETTE<br />

Service Leave Act 1987; Guardianship and<br />

Administration Act 1993; Legal Practitioners<br />

Act 1981; Magistrates Act 1983; Magistrates<br />

Court Act 1991; Remuneration Act 1990;<br />

Second-hand Dealers and Pawnbrokers Act<br />

1996; South Australian Employment Tribunal<br />

Act 2014; Spent Convictions Act 2009; Young<br />

Offenders Act 1993)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Fines Enforcement and Debt Recovery Act 2017,<br />

No. 71 of 2017<br />

(amend Cross-border Justice Act 2009,<br />

Expiation of Offences Act 1996, Magistrates<br />

Court Act 1991, Motor Vehicles Act 1959,<br />

Summary Procedure Act 1921 Victims of Crime<br />

Act 2001)<br />

Gazetted: 12 December 2017,<br />

No. 81 of 2017<br />

Appointments<br />

President of the South Australian<br />

Employment Tribunal<br />

from 7 November 2017<br />

Steven Peter Dolphin<br />

Gazetted: 7 November 2017,<br />

No. 75 of 2017<br />

Magistrate<br />

Ancillary Magistrate of the Youth Court<br />

of South Australia<br />

South Australian Civil and<br />

Administrative Tribunal<br />

Member<br />

commencing on 22 November 2017<br />

Protective Security Officers<br />

Disciplinary Tribunal<br />

Panel Member:<br />

Police Disciplinary Tribunal<br />

Panel Member:<br />

From 22 November 2017 until 28 April 2020<br />

Oliver Rudolf Gerhard Koehn<br />

Gazetted: 21 November 2017,<br />

No. 77 of 2017<br />

Youth Court of South Australia<br />

Magistrate of the Court<br />

Member of the Court’s principal<br />

judiciary<br />

for a term of 2 years.<br />

Luke Anthony Davis<br />

Gazetted: 21 November 2017,<br />

No. 77 of 2017<br />

South Australian Civil and<br />

Administrative Tribunal<br />

Sessional Ordinary Members<br />

for a term of three years commencing on 5<br />

December 2017 and expiring on 4 December<br />

2020 -<br />

Alicia Mary Devitt Bills<br />

Suzanne Elizabeth Carlton<br />

Sandra Mary Clark<br />

Julie Cowdroy<br />

Maria Demosthenous<br />

Mark Ewart Fuller<br />

Allan Roy Hunter<br />

Jane Louise McGrath<br />

Anne Veronica Moroney<br />

Matt Murphy<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 41


GAZING IN THE GAZETTE<br />

Kelly Anne Ryan<br />

Carolyn Louise Wilson<br />

Gazetted: 5 December 2017,<br />

No. 79 of 2017<br />

Judge of the District Court of<br />

South Australia<br />

Deputy President of the South<br />

Australian Employment Tribunal<br />

commencing on 19 December 2017<br />

Margaret Julia Kelly<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

Rules<br />

Magistrates Court Rules 1992<br />

Amendment 64<br />

Gazetted: 15 November 2017,<br />

No. 76 of 2017<br />

District Court Civil Rules 2006<br />

Amendment 35<br />

District Court Civil Supplementary<br />

Rules 2014<br />

Amendment 7<br />

District Court Criminal Rules 2014<br />

Amendment 5<br />

District Court Criminal Supplementary<br />

Rules 2014<br />

Amendment 4<br />

District Court Special Applications<br />

Rules 2014<br />

Amendment 1<br />

District Court Special Applications<br />

Supplementary Rules 2014<br />

Amendment 2<br />

Supreme Court Criminal Rules 2014<br />

Amendment 5<br />

Supreme Court Criminal<br />

Supplementary Rules 2014<br />

Amendment 4<br />

Supreme Court Civil Rules 2006<br />

Amendment 34<br />

Supreme Court Civil Supplementary<br />

Rules 2014<br />

Amendment 8<br />

Supreme Court Special Applications<br />

Rules 2014<br />

Amendment 2<br />

Gazetted: 28 November 2017,<br />

No. 78 of 2017<br />

Supreme Court Special Applications<br />

Supplementary Rules 2014<br />

Amendment 5<br />

Gazetted: 5 December 2017,<br />

No. 79 of 2017<br />

South Australian Civil and<br />

Administrative Tribunal Rules 2014<br />

Amendment No. 3<br />

Gazetted: 19 December 2017,<br />

No. 82 of 2017<br />

REGULATIONS PROMULGATED (4 NOVEMBER 2017 – 2 JANUARY <strong>2018</strong>)<br />

REGULATION NAME REGULATION NO. DATE GAZETTED<br />

Development Act 1993 301 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Aquaculture Act 2001 302 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Freedom of Information Act 1991 303 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Controlled Substances Act 1984 304 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Trans Tasman Mutual Recognition (South Australia) Act 1999 305 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Mutual Recognition (South Australia) Act 1993 306 of 2017 7 November 2017, Gazette No. 75 of 2017<br />

Local Government Act 1999 307 of 2017 15 November 2017, Gazette No. 76 of 2017<br />

Heavy Vehicle National Law (South Australia) Act 2013 308 of 2017 21 November 2017, Gazette No. 77 of 2017<br />

Harbors and Navigation Act 1993 309 of 2017 21 November 2017, Gazette No. 77 of 2017<br />

Intervention Orders (Prevention of Abuse) Act 2009 310 of 2017 21 November 2017, Gazette No. 77 of 2017<br />

Public Corporations Act 1993 311 of 2017 21 November 2017, Gazette No. 77 of 2017<br />

Notaries Public Act 2016 312 of 2017 28 November 2017, Gazette No. 78 of 2017<br />

Legal Practitioners Act 1981 313 of 2017 28 November 2017, Gazette No. 78 of 2017<br />

Local Government Act 1999 314 of 2017 28 November 2017, Gazette No. 78 of 2017<br />

SACE Board of South Australia Act 1983 315 of 2017 28 November 2017, Gazette No. 78 of 2017<br />

Public Sector (Data Sharing) Act 2016 316 of 2017 28 November 2017, Gazette No. 78 of 2017<br />

Controlled Substances Act 1984 317 of 2017 5 December 2017, Gazette No. 79 of 2017<br />

Fair Trading Act 1987 318 of 2017 5 December 2017, Gazette No. 79 of 2017<br />

Controlled Substances Act 1984 319 of 2017 5 December 2017, Gazette No. 79 of 2017<br />

Children and Young People (Oversight and Advocacy Bodies) Act 2016 320 of 2017 5 December 2017, Gazette No. 79 of 2017<br />

Criminal Law Consolidation Act 1935 321 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Criminal Procedure Act 1921 322 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Criminal Law (Sentencing) Act 1988 323 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Criminal Law Consolidation Act 1935 324 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Land and Business (Sale and Conveyancing) Act 1994 325 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Liquor Licensing Act 1997 326 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Public Sector Act 2009 327 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Surveillance Devices Act 2016 328 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Electoral Act 1985 329 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 330 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 331 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 332 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 333 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 334 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 335 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Primary Industry Funding Schemes Act 1998 336 of 2017 12 December 2017, Gazette No. 81 of 2017<br />

Water Industry Act 2012 337 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Motor Vehicles Act 1959 338 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Motor Vehicles Act 1959 339 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Road Traffic Act 1961 340 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Livestock Act 1997 341 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Summary Procedure Act 1921 342 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Justices of the Peace Act 2005 343 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Health Practitioner Regulation National Law (South Australia) Act 2010 344 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

National Electricity (South Australia) Act 1996 345 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

National Energy Retail Law (South Australia) Act 2011 346 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

National Gas (South Australia) Act 2008 347 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Criminal Law Consolidation Act 1935 348 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Southern State Superannuation Act 2009 349 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Road Traffic Act 1961 350 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Road Traffic Act 1961 351 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Harbors and Navigation Act 1993 352 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Children and Young People (Safety) Act 2017 353 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Summary Procedure Act 1921 354 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Children and Young People (Safety) Act 2017 355 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Teachers Registration and Standards Act 2004 356 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

Births, Deaths and Marriages Registration Act 1996 357 of 2017 19 December 2017, Gazette No. 82 of 2017<br />

42 THE BULLETIN <strong>February</strong> <strong>2018</strong>


TAX FILES<br />

New surcharge duty<br />

on foreign acquisitions<br />

BERNIE WALRUT, MURRAY CHAMBERS<br />

INTRODUCTION<br />

On 1 January, <strong>2018</strong> the Stamp<br />

Duties (Foreign Ownership Surcharge)<br />

Amendment Act 2017 (SA) (FOA) came into<br />

effect and amended the Stamp Duties Act<br />

1923 (SA) (SDA). It imposes a surcharge<br />

of 7% on acquisitions of residential land<br />

by foreigners or acquisitions by foreigners<br />

of certain interests in landholding entities<br />

under Part 4 of the SDA. The imposition<br />

of that surcharge is effected by the<br />

introduction of two new substantive<br />

provisions in the SDA: section 72 imposes<br />

the duty on relevant land acquisitions and<br />

section 102AB imposes the surcharge on<br />

acquisitions of interests in landholders.<br />

There are no express transitional<br />

provisions in the FOA. 1<br />

In effect, the stamp duty imposed<br />

on acquisitions of residential land by<br />

foreigners, is likely to range from 10.8%<br />

to close to 12.5%. 2 A foreign purchaser<br />

surcharge is currently imposed in New<br />

South Wales at the rate of 8%; 3 in Victoria<br />

it is at the rate of 7%; 4 in Queensland it is<br />

currently 3% though there is a proposal to<br />

increase it to 7%; 5 and Western Australia<br />

proposes to introduce a 4% surcharge<br />

from 1 January, 2019. 6<br />

DUTIABLE INSTRUMENTS ATTRACT<br />

SURCHARGE<br />

In the case of transactions involving<br />

land, the foreign surcharge is only payable<br />

on a “dutiable instrument” (including a<br />

statement under section 71E) executed or<br />

taken to be executed on or after 1 January,<br />

<strong>2018</strong>. 7 There is no definition of a dutiable<br />

instrument in the SDA. Section 72(2)<br />

provides, that if an instrument to which<br />

section 72 applies, effects, acknowledges,<br />

evidences or records a transaction whereby<br />

an interest in residential land is acquired<br />

by a foreign person or a person takes the<br />

interest as trustee for a foreign person<br />

then the surcharge is payable. It is in<br />

effect a new head of duty. Section 72(2)<br />

appears to define what transactions, and<br />

consequently instruments, are within the<br />

scope of the surcharge provision. Further,<br />

section 72 is concerned with transactions<br />

not instruments. The provision is applying<br />

the surcharge potentially to a broader class<br />

of instruments than those currently liable<br />

to ad valorem duty.<br />

In effect, the duty imposed could be<br />

payable on an option 8 or contract for<br />

the sale of land to a foreigner, as it is<br />

likely to be regarded as an instrument<br />

that effects, acknowledges, evidences<br />

or records a transaction whereby an<br />

interest in residential land is acquired by<br />

a foreign person 9 or a person takes the<br />

interest as trustee for a foreign person.<br />

This is a significant departure from<br />

the current taxing regime of the SDA.<br />

The Commissioner does not appear to<br />

currently share the view that the provision<br />

operates so broadly. 10<br />

RESIDENTIAL LAND<br />

The definition of residential land in<br />

the provisions is similar to that recently<br />

adopted to facilitate the abolition of stamp<br />

duty on commercial real property. 11 In<br />

effect, the Commissioner will rely on the<br />

land use codes provided by the Valuer-<br />

General in most situations to determine<br />

whether a property is residential land. 12<br />

Such land use codes are provided by<br />

the Valuer-General as an administrative<br />

practice. They are not mentioned in the<br />

Valuation of Land Act 1971 (SA) (VLA) or<br />

the regulations made thereunder. There is<br />

no right to object to a code that may be<br />

assigned by the Valuer-General under the<br />

VLA, yet such codes are being increasingly<br />

used to determine liability for stamp duty.<br />

In the experience of practitioners, the<br />

Valuer-General does, on request, review<br />

such codes, but that may not always lead<br />

to them being changed. 13 The situation<br />

can be even more difficult where there is<br />

a mixed use and disagreement about the<br />

extent of a particular use.<br />

Ultimately the Commissioner has<br />

the discretion under section 72(8) to<br />

determine the use of land under the<br />

SDA and the decision is one that may<br />

be the subject of an objection under the<br />

Taxation Administration Act 1996 (SA). One<br />

assumes that, on any appeal against any<br />

such decision, the Court must consider<br />

the land use codes, as well as the actual<br />

factual situation. So, ensuring the land use<br />

codes are themselves accurate remains<br />

significant for all affected. Also, the<br />

definition of what is residential land can<br />

create significant issues in the case of<br />

property the subject of a changing use<br />

or involving a mixed development (e.g.<br />

deemed residential land currently unused<br />

but is acquired for the purpose of a<br />

development of commercial premises on<br />

the ground and lower floors and residential<br />

use on the upper floors).<br />

Under section 72(9) the relevant date<br />

for determining the use of the land is<br />

the date of the relevant instrument.<br />

Whilst this does, by definition, define a<br />

point in time for determining the use,<br />

it really does not address the issue of a<br />

changing or mixed uses. It also highlights<br />

the issue of determining what is the<br />

date of a relevant instrument, where the<br />

instrument that is liable is an instrument<br />

that effects, acknowledges, evidences or<br />

records a transaction whereby an interest<br />

in residential land is acquired by a foreign<br />

person. It may be a letter, an option,<br />

the contract for sale, a subsequent deed<br />

varying the contract and a conveyance.<br />

Each may effect, acknowledge, evidence<br />

or record a transaction by which property<br />

is acquired, it is only the conveyance that<br />

perfects the transaction. So, there may be<br />

multiple points in time that need to be<br />

considered under this provision.<br />

FOREIGN PERSONS<br />

A natural person is a foreign person 14 if<br />

the person is not an Australian citizen, 15<br />

the holder of a permanent visa 16 or a New<br />

Zealand citizen who is the holder of a<br />

special category visa. 17<br />

A corporation is a foreign person if it is<br />

incorporated in a jurisdiction that is not<br />

an Australian jurisdiction. 18 A corporation<br />

incorporated in another country and<br />

owned wholly by Australian citizens will be<br />

a foreign corporation (including even, say,<br />

a New Zealand company). So, for some<br />

purposes it is appropriate to look through<br />

the corporation as to who controls it,<br />

when suitable to the revenue, but not in<br />

other situations, where it is not suitable to<br />

the revenue.<br />

A corporation is also a foreign person, if<br />

another person who is a foreign person or<br />

<strong>February</strong> <strong>2018</strong> THE BULLETIN 43


TAX FILES<br />

a trustee of a foreign trust, or a number<br />

of such persons in combination, hold<br />

50% or more of the corporation’s shares<br />

or are entitled to cast, or control the<br />

casting of, 50% or more of the maximum<br />

number of votes at a general meeting<br />

of the corporation. 19 In this provision<br />

the emphasis is solely on voting power,<br />

rather than economic consequences (i.e.<br />

dividends or capital distributions). 20<br />

A foreign trust is one where the<br />

beneficial interests are fixed, or one where<br />

a beneficial interest of 50% or more of<br />

the capital of the trust property is held 21<br />

by one or more foreign persons. In the<br />

case of a discretionary trust, it is a foreign<br />

trust if one or more of the following is a<br />

foreign person:<br />

• a trustee;<br />

• a person who has the power to appoint<br />

under the trust; 22<br />

• an identified object 23 under the trust; or<br />

• a person who takes capital of the trust<br />

in default.<br />

The last three of these trust nexus<br />

provisions each have the potential to<br />

create real practical issues. The first is the<br />

power to appoint where it is vested in a<br />

foreign person, the second is an identified<br />

object who is a foreign person and the<br />

third is a person who may take the capital<br />

of the trust in default.<br />

Most discretionary trusts have a wide<br />

range of powers to appoint, including the<br />

power to appoint property, income, a new<br />

trustee and a person to be a beneficiary.<br />

Most such powers are held by the trustee,<br />

though occasionally by a third person (e.g.<br />

the power to appoint a new trustee). So,<br />

if any person with any such power is a<br />

foreign person then the trust is a foreign<br />

trust without anything more.<br />

It was suggested by the Government,<br />

in the passage of the legislation, that the<br />

simple way of avoiding having any issue<br />

with this aspect was to ensure that the<br />

person who has the power to appoint is<br />

not a foreign person. In some cases, it can<br />

be as simple as that. But in some cases,<br />

the persons who have such control, attain<br />

such power by death, divorce, bankruptcy<br />

or possibly by the person becoming a<br />

foreign person by migration. If any of<br />

those events occur within three years of<br />

the acquisition of the residential property<br />

by the trustee then it appears that section<br />

72(7) will apply to render the acquisition<br />

by the trustee of the trust the acquisition<br />

of the residential land by a foreign trust.<br />

So, this can be triggered by involuntary<br />

events not simply matters of choice.<br />

The second is the trust nexus provision,<br />

which simply requires, that an identified<br />

44 THE BULLETIN <strong>February</strong> <strong>2018</strong><br />

object 24 under the trust is a foreign person.<br />

Does this provision simply mean a person<br />

who is actually named as an object 25 or<br />

is a reference to the brothers, sisters and<br />

parents of the person named as, say, the<br />

primary beneficiary, sufficient to be an<br />

identified object. The response in the<br />

course of the passage of the Budget Bill<br />

was that the person must be identified<br />

in the trust deed by name. The term is<br />

apparently not intended to include all<br />

persons within a broad class or range of<br />

beneficiaries under a discretionary trust<br />

deed. The Commissioner proposes to<br />

address this issue in a circular.<br />

It is still unclear how the provision will<br />

work if, say, three brothers are named as<br />

objects of the trust and one of them is<br />

foreign person (as defined). Is it sufficient<br />

that one person is a foreign person or does<br />

it need to be a majority or all of them?<br />

The current drafting appears to assume<br />

there will only be one such person named.<br />

The third nexus provision of concern<br />

is that based on a foreign person being<br />

a taker in default of the capital of the<br />

trust. The provision applies to a “person<br />

who takes capital of the trust property<br />

in default”, presumably that means in<br />

default of appointment by the trustees.<br />

In most modern discretionary trusts, it<br />

means those persons who take the capital<br />

of the trust on the failure of the trustee<br />

to appoint or distribute the capital prior<br />

to the ultimate vesting of the trust. 26 The<br />

response to the Budget Bill provision was<br />

that the concept of a taker in default is<br />

commonly understood. It is suggested<br />

that the expression “takes capital of the<br />

trust property in default” usually means,<br />

in the context of most discretionary<br />

trusts, the persons who take in default<br />

of appointment by the trustee at the<br />

expiration of the term of the trust, that<br />

is on the vesting day. As the Victorian<br />

decision in Lygon Nominees Pty Ltd v<br />

Commissioner of State Revenue 27 highlighted,<br />

such persons often cannot be determined<br />

until the actual vesting day.<br />

Notwithstanding the width of the<br />

provision, the response to the Budget Bill<br />

on this aspect was that it is a reference to a<br />

specified person in the trust deed. That is,<br />

the person must be identified in the trust<br />

deed by name. The term is not a blanket<br />

reference to persons who may potentially<br />

take capital of the trust property in default<br />

under a discretionary trust deed. In most<br />

discretionary trust deeds, it is uncommon<br />

to simply specify such a person by name.<br />

In most cases the takers of the capital<br />

in default are a broad class. It appears<br />

this issue may also be covered by a<br />

Commissioner’s circular<br />

SECTION 72 – SUBSECTIONS (6) AND (7)<br />

–ADJUSTMENT PROVISIONS<br />

As if the provisions are not complex<br />

enough they include mechanisms for<br />

adjustments in respect of the surcharge<br />

where there is a change in status of the<br />

person in some limited situations. One<br />

provides for a refund where a foreign<br />

person or a foreign trust pays the<br />

surcharge and within twelve months the<br />

person or trust ceases to be a foreign<br />

person or foreign trust. 28 The other one<br />

provides that the surcharge is payable<br />

where a person or trustee becomes a<br />

foreign person or trust within three years<br />

of the acquisition of residential land. 29<br />

Section 72(7)(c), which provides for the<br />

adjustment of any such claw back, where<br />

the corporation or trust becomes a foreign<br />

person within three years, is in my view<br />

particularly difficult to understand and<br />

apply, it is effectively an exclusion on an<br />

exclusion coupled with an apportionment.<br />

Further, the three-year adjustment<br />

provision appears to be unduly harsh<br />

where there are changes in the control<br />

of a company or a trust for good<br />

family reasons (e.g. death, divorce etc),<br />

particularly as the legislation does not<br />

provide any power for the Commissioner<br />

to provide relief from the operation of the<br />

claw back provision in such situations.<br />

A simple example is a resident taxpayer’s<br />

wholly owned company acquiring<br />

residential land. The resident taxpayer dies<br />

shortly after that acquisition. The shares<br />

in the company are transferred to his nonresident<br />

foreign citizen son pursuant to the<br />

terms of his will. Section 72(7) will require<br />

the payment of the surcharge in this<br />

situation. Various other similar common<br />

situations can be described. 30<br />

Whilst there are adjustment provisions in<br />

connection with the status of the foreign<br />

persons, corporations or trusts, there are<br />

no adjustment mechanisms where there is<br />

a change in the status of the land acquired,<br />

whether within twelve months or three<br />

years. 31 In the passage of the Budget Bill<br />

the Government indicated developments<br />

that may benefit the State may be granted<br />

ex gratia relief from the foreign owner<br />

surcharge, where it is appropriate to do<br />

so. Accordingly, it is proposed to publish<br />

a ruling setting out factors that will be<br />

considered in determining whether<br />

ex gratia relief from the surcharge will<br />

apply to certain land. 32 Apparently, all<br />

other jurisdictions with a foreign owner<br />

surcharge exclude significant residential<br />

developments either by way of Treasurer’s<br />

discretion or ex gratia relief.


TAX FILES<br />

LANDHOLDER PROVISIONS<br />

Section 102AB includes similar<br />

provisions imposing the surcharge on the<br />

acquisition of interests in companies or<br />

unit trusts that own residential land under<br />

the landholder provisions in Part 4 of<br />

the SDA including where there is a group<br />

acquisition that involves a foreign entity. 33<br />

These provisions include similar claw back<br />

and refund provisions. The same issues<br />

as described above will apply to many of<br />

the provisions described in respect of the<br />

acquisition of interests in land.<br />

Tax Files is contributed on behalf of the South<br />

Australian based members of the Taxation<br />

Committee of the Business Law Section of the<br />

Law Council of Australia. B<br />

Endnotes<br />

1 The provisions in the FOA were taken from<br />

the Budget Measures Bill 2017 (SA) (Budget Bill)<br />

that was amended in the Legislative Council<br />

to remove the bank levy. That Bill as amended<br />

did not pass the Parliament and that lead to the<br />

introduction of the FOA with the surcharge<br />

increased from 4% to 7%. The Budget Bill<br />

proposed a surcharge of 4%.<br />

2 This is based on the acquisition of a modest<br />

dwelling of $300,000 (stamp duty of effectively<br />

3.8% is payable) to say one of $2 million (stamp<br />

duty of effectively 5.2% is payable).<br />

3 Section 104U of the Duties Act 1997 (NSW).<br />

4 Section 28A of the Duties Act 2000 (Vic).<br />

5 Section 244 of the Duties Act 2001 (Qld). The<br />

Queensland Government announced prior to the<br />

Queensland State election a proposed increase of<br />

the surcharge to 7%.<br />

6 See https://www.finance.wa.gov.au/cms/News/<br />

State_Revenue/2017-18_Budget_Measures.aspx.<br />

7 Section 72(1).<br />

8 See George Wimpey & Co v IRC [1974] 2 All ER<br />

602. Also see section 2(4) of the SDA.<br />

9 The usual view is that a contract for the purchase<br />

of land creates an interest commensurate with<br />

the ability to obtain specific performance, though<br />

it does not effect a passing of a legal title or full<br />

beneficial ownership (see by way of example<br />

the discussion in Trust Company of Australia Ltd v<br />

Commissioner of State Revenue [2007] VSC 451).<br />

10 See https://www.revenuesa.sa.gov.au/taxes-andduties/foreign-ownership-surcharge.<br />

11 Section 72(3).<br />

12 Section 72(8).<br />

13 In some situations, there may be a right to object<br />

to a designation as to the use of land under<br />

sections 8 and 9 of the Emergency Services Funding<br />

Act 1998 (SA), but its relationship to the land use<br />

codes and the right to dispute them is unclear.<br />

14 Section 14(2)<br />

15 Within the meaning of the Migration Act 1958<br />

(Cth) (Migration Act).<br />

16 As defined in section 30(1) of the Migration Act.<br />

17 As defined in section 32(1) of the Migration Act.<br />

18 Section 2(14).<br />

19 Section 2(14).<br />

20 This may be contrasted with section 93(3)<br />

of Part 4.<br />

21 “Hold” in these definitions is given an extended<br />

meaning.<br />

22 Section 14(2).<br />

23 Ibid.<br />

24 This is apparently intended to focus on the<br />

person commonly described as the primary<br />

beneficiary.<br />

25 Such as the Primary Beneficiary, as that term is<br />

commonly used in the drafting of discretionary<br />

trusts.<br />

26 See I Hardingham and R Baxt Discretionary Trusts<br />

(2 nd ed) [202]-[213] and [604]. That text at [604]<br />

says they may be ascertained in one of three<br />

ways, they may be named as such, they may be<br />

identified by operation of law or they may be<br />

identified by implication.<br />

27 [2007] VSCA 140 [63].<br />

28 Sections 72(5) and 72(6).<br />

29 Section 72(7).<br />

30 Notwithstanding the wording of the provision,<br />

it appears that the Commissioner intends to<br />

administer the provision on the basis that the<br />

exemption in section 71(5) will render the<br />

instrument non dutiable for stamp duty and<br />

also for surcharge purposes, see Budget Bill<br />

responses.<br />

31 Sections 72(5), 72(6) and 72(7). Victoria deals<br />

with one change in status of land situation in<br />

section 18A of the Duties Act 2000 (Vic).<br />

32 At the State Taxes Liaison Group meeting of<br />

6 December 2017 the Commissioner indicated<br />

that the publication of such a ruling is a matter<br />

for the Treasurer’s office and that consultation<br />

would occur prior to its publication.<br />

33 Section 102AB.<br />

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CLASSIFIEDS<br />

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MATRIMONIAL<br />

DECEASED ESTATES<br />

INSURANCE<br />

TAX REALIGNMENT<br />

INSOLVENCY<br />

FURNITURE<br />

ANTIQUES, COLLECTIONS<br />

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of Australia<br />

Family Law - Melbourne<br />

Marita Bajinskis<br />

formerly of<br />

Howe Martin & Associates<br />

is a Principal at<br />

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Marita is an Accredited Family<br />

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FUND<br />

The Litigation Assistance Fund (LAF) is a<br />

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LAF receives applications for funding<br />

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civil claimants seeking compensation/<br />

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LAF funds itself by receiving a relatively<br />

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LAF recommends considering whether<br />

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representation. For example, all Funding<br />

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For further information, please visit<br />

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Annie MacRae on 8229 0263.<br />

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The LawCare Counselling<br />

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46 THE BULLETIN <strong>February</strong> <strong>2018</strong>


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