Alert Digest No. 6 of 2001

Tuesday, 29 May 2001


Summary of Committee Comments

Agricultural and Veterinary Chemicals (Victoria) (Amendment) Bill
Appropriation (2001/2002) Bill
Appropriation (Parliament 2001/2002) Bill
Constitution (Parliamentary Privilege) Bill
Co-operative Schemes (Administrative Actions) Bill
Corporations (Administrative Actions) Bill
Corporations (Ancillary Provisions) Bill
Corporations (Consequential Amendments) Bill
Duties (Amendment) Bill
National Parks (Marine National Parks and Marine Sanctuaries) Bill
Public Notaries Bill
Racial and Religious Tolerance Bill
State Taxation Acts (Taxation Reform Implementation) Bill

Appendix 1 – Index of Bills Reported 2001

Appendix 2 – Committee Comments classified by Terms of Reference

Appendix 3 – Ministerial Correspondence 2001


Agricultural and Veterinary Chemicals (Victoria) (Amendment) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. K. Hamilton MLA
Portfolio responsibility: Minister for Agriculture

Purpose

This Bill is part of a legislative response to the decision of the High Court in The Queen v Hughes (2000) 171 ALR 155 and other related matters, which includes the Co-operative Schemes (Administrative Actions) Bill (also in this Digest) and the Agricultural and Veterinary Chemicals Legislation Amendment Bill (Cth).

In Hughes the High Court indicated that where a State gave a Commonwealth authority or officer a power to undertake a function under State law together with a duty to exercise the function, there must be a clear nexus between the exercise of the function and one or more of the legislative powers of the Commonwealth set out in the Commonwealth Constitution.

The Bill –

  • validates things done or omitted to be done by certain Commonwealth authorities or officers in pursuance of the National Registration Scheme (NRS) for agricultural and veterinary chemicals that are potentially invalid following the decision of the High Court in Hughes; and

  • validates things done or omitted to be done by certain Commonwealth authorities or officers that are potentially invalid due to certain gaps in the NRS legislative scheme that have arisen independently of the decision in Hughes; and

  • ensures that things done or omitted in the future by Commonwealth authorities or officers in pursuance of the NRS have a constitutionally sound basis.

That Bill validates past actions of Commonwealth authorities and officers that were not linked to a head of power under the Commonwealth Constitution, and ensures that no duty, function or power is conferred on a Commonwealth authority or officer which is beyond the legislative power of the State.

The Committee notes the following comments from the Second Reading Speech –

The High Court case of The Queen v. Hughes, which is known as the Hughes case, involved a challenge to the power of the Commonwealth Director of Public Prosecutions to prosecute breaches of State Corporations Law.

The High Court held that the conferral of a power on a Commonwealth agency or officer by a State law, coupled with a duty to exercise the power, must be linked to a Commonwealth head of power. The case also highlighted the need for the Commonwealth Parliament to authorise the conferral of duties, powers or functions by the State on Commonwealth authorities and officers. This decision has cast doubt on the ability of Commonwealth authorities and officers to lawfully exercise powers and to perform functions under State laws in relation to intergovernmental legislative schemes.

The Bill re-confers powers on Commonwealth authorities and officers, where the conferral was not specifically authorised by the Commonwealth Parliament. These provisions apply to the national registration authority, the Commonwealth Director of Public Prosecutions and the Commonwealth Administrative Appeals Tribunal. The Bill also confers powers on, and validates past actions of inspectors and analysts, that were done without proper conferral of power. The Bill will be proclaimed to commence after the commencement of the Commonwealth Agricultural and Veterinary Chemicals Legislation Amendment Bill 2001 that will authorise the conferral of these state powers. This Commonwealth Bill was introduced into the Senate on 3 April this year.

Content and Committee comment

[Clauses]

[2] The Bill comes into operation immediately before the commencement of clause 4(1) of the Co-operative Schemes (Administrative Actions) Bill.

The Committee notes the following comments from the Second Reading Speech –

The Bill also confers powers on, and validates past actions of inspectors and analysts, that were done without proper conferral of power.

The Bill will be proclaimed to commence after the commencement of the Commonwealth Agricultural and Veterinary Chemicals Legislation Amendment Bill 2001 that may authorise the conferral of these State powers. This Commonwealth Bill was introduced into the Senate on the third of April this year.

The Committee notes that by virtue of the commencement by proclamation provision in clause 4(1) of the Co-operative Schemes (Administrative Actions) Bill (also in this Digest) the provisions in the Bill will also commence by proclamation.

The Committee notes that the commencement of both Bills are dependent on the passage of complementary Commonwealth legislation permitting the referral of State powers to the Commonwealth. The Committee has no objection to the use of such a legislative practice in the circumstances.

[5]. Repeals and re-enacts Part 5 of the Agricultural and Veterinary Chemicals (Victoria) Act 1994 (the Act), which contains provisions that apply certain Commonwealth administrative laws as laws of the State. The effect is to re-apply those laws and to re-confer functions and powers on Commonwealth authorities and officers.

Note

There is doubt about the efficacy of the previous purported conferral of functions and powers by Part 5, since the Commonwealth has not expressly authorised the conferral of those powers and functions by the States and the Northern Territory. The re-enactment complements provisions in the Commonwealth legislation which specifically authorises the conferral of certain powers on Commonwealth authorities and officers.

[6]. Inserts new sections 28A and 28B into the Act conferring functions and powers on Commonwealth inspectors and analysts. Proposed section 28B will validate things done or omitted to be done by inspectors and analysts before the commencement of proposed section 28A. (Refer also to the section 85 of the Constitution Act 1975 statement below).

[8]. Inserts a transitional provision to provide that the re-enacted Part 5 applies to matters and things done or omitted to be done before, on and after the repeal and re-enactment of Part 5.

The Committee notes the retrospective validating provisions in clauses 6 and 8 and accepts that they do no more than validate anything done or omitted to be done prior to the commencement of the provisions in the Bill, and that were considered lawfully done or omitted to be done prior to the High Court’s decision in ‘Hughes’.

The Committee accepts that the amending provision does not trespass unduly upon rights and freedoms within the meaning of section 4D(a)(i) of the Parliamentary Committees Act 1968.

Report to the Parliament pursuant to section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

[7]. Inserts a new section 31A into the Act that states the intention of the new section 28B to alter or vary section 85 of the Constitution Act 1975. The alteration or variation is necessary to prevent the bringing before the Supreme Court of any action, suit or proceeding in relation to anything done or omitted to be done by a Commonwealth inspector or analyst before the commencement of [6].

The reason for preventing the bringing of these proceedings is to protect the State from potential liabilities arising out of past actions or omissions by Commonwealth inspectors and analysts.

The Committee notes the following comments from the Second Reading Speech –

The proposed section 28B, being inserted by clause 6 of the Bill, is intended to alter or vary section 85 of the Constitution Act 1975. The alteration or variation is to the extent necessary to prevent the bringing before the Supreme Court of any action, suit or proceeding in relation to anything done or omitted to be done by a Commonwealth inspector or analyst before the commencement of the proposed clause 6. Before the enactment of clause 6 duties functions and powers had not been properly conferred on these inspectors and analysts.

The reason for preventing the bringing of these proceedings is to protect the State from potential liabilities arising out of past actions or omissions by Commonwealth inspectors and analysts.

The Bill complements the proposed Cooperative Schemes (Administrative Actions) Bill 2001, which is also before the Parliament, proposed by the Attorney-General. This other Bill will validate past acts of Commonwealth authorities and officers that were not linked to a Commonwealth head of power under the constitution. It will also place the NRS on a more secure constitutional footing by ensuring that no duty, function or power is conferred on a Commonwealth authority or officer which is beyond the legislative power of the State.

The Agricultural and Veterinary Chemicals (Victoria) (Amendment) Bill is vital to prevent the real threat of legal challenge to actions and decisions by Commonwealth authorities and officers, which is integral to the NRS. The Bill is also vital to the government's continued commitment to have an effective uniform national registration system for agricultural and veterinary chemicals.

The Committee has examined the proposed section 85 of the Constitution Act 1975 clause and notes the Minister’s statement in the Second Reading Speech and accepts that the provisions are consistent with the purposes of the Bill.

The Committee makes no further comment.


Appropriation (2001/2002) Bill

Introduced: 15 May 2001
Second Reading Speech: 15 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. J. Brumby MLA
Portfolio responsibility: Treasurer

Purpose

This Bill provides appropriation authority for payments from the Consolidated Fund in respect of the 2001/2002 financial year. The amounts contained in Schedule 1 to the Bill provide for the ongoing operations of departments, new output initiatives and new asset investment in so far as these are funded by way of annual appropriation. The Schedule also includes payments made on behalf of the State.

Content and Committee comment

[Clauses]

[2]. The Act comes into operation on the day it receives Royal Assent.

[3]. The Treasurer may issue the stated amount out of the Consolidated Fund in respect of the financial year 2001/2002 for the purposes set out in Schedule 1 to the Bill. Sub-clauses (2) and (3) provide authority for additional appropriation if necessary for increases in salaries and related costs that may be the result of determinations or legislation during the year.

[4]. The Consolidated Fund is appropriated to the extent necessary for the purposes included in [3].

Schedules

Schedule 1 sets out the 8 Departmental Votes Estimates.

The Committee makes no further comment.


Appropriation (Parliament 2001/2002) Bill

Introduced: 15 May 2001
Second Reading Speech: 15 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. J. Brumby MLA
Portfolio responsibility: Treasurer

Purpose

This Bill provides appropriation authority for payment from the Consolidated Fund to the Parliament in respect of the 2001/2002 financial year. The amounts contained in Schedule 1 to the Bill provide for the ongoing operations of the Parliament, new output initiatives and new asset investment in so far as these are funded by way of annual appropriation.

Content and Committee comment

[Clauses]

[2]. The Act comes into operation on the day it receives Royal Assent.

[3]. The Treasurer may issue the stated amount out of the Consolidated Fund in respect of the financial year 2001/2002 for the purposes set out in Schedule 1 to the Bill. Sub-clauses (2) and (3) provide authority for additional appropriation if necessary for increases in salaries and related costs that may be the result of determinations or legislation during the year.

[4]. The Consolidated Fund is appropriated to the extent necessary for the purposes included in [3].

The Committee makes no further comment.


Constitution (Parliamentary Privilege) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. S. Bracks MLA
Portfolio responsibility: Premier

Purpose

The Bill amends Constitution Act 1975 and will enable certain reports and documents that may or are required to be tabled before the Parliament to be published when Parliament is not sitting and to provide that reports and documents published in accordance with this Act attract Parliamentary Privilege.

As Honourable members will be aware the practice with previous Royal Commissions has been for the reports of those commissions to be tabled in each house at the command of the Governor and be ordered to be printed. Such a process causes these reports to attract parliamentary privilege pursuant to sections 73 and 74 of the Constitution Act 1975.

However, should Parliament not be sitting at the time the remaining volume or volumes of the report of the Metropolitan Ambulance Service Royal Commission are delivered and as the report is of great public interest, an alternative means of publication of this and other reports is required.

Unlike the Longford Royal Commission (Report) Act 1999, this Bill will also provide for the publication of reports of royal commissions and boards of inquiry and other reports that may be made to Parliament.

Such reports include parliamentary committee reports and reports of the Ombudsman, Auditor-General and other statutory office-holders.

Accordingly, the Bill provides for a process whereby these reports may be published and attract parliamentary privilege and that sections 73 and 74 of the Constitution Act apply to these reports.

I am sure that all Honourable members will support this bill as it will ensure prompt public access and scrutiny of these reports and ensure that the published reports will attract absolute privilege.

Note

Section 19(2) of the Constitution Act 1975 provides thatThe Parliament may by Act legislate for or with respect to the privileges immunities and powers to be held enjoyed and exercised by the Council and the Assembly and by the committees and the members thereof respectively’.

The absolute privilege enjoyed by reports and documents tabled in the Parliament are specifically provided for in sections 73 and 74 of the Constitution Act 1975.

Content and Committee comment

[Clauses]

[2]. The Act comes into operation on the day after Royal Assent.

[3]. Inserts new sections 74AB, 74AC, 74AD, 74AE, 74AF, 74AG and 74AH into the Constitution Act 1975 to provide for the publication of various reports and documents when neither House of Parliament is sitting. Publication of these reports and documents in accordance with these sections vests the reports and documents with Parliamentary Privilege.

Section 74AB provides for the publication of reports of Royal Commissions, Boards of Inquiry and documents provided by a Minister and approved by the Speaker or the President. The Minister responsible for the Commission of Inquiry or the Board of Inquiry (sections 88B and 88C of the Constitution Act 1975) must cause the report or document to be published by the Government Printer. These reports or documents are deemed to have been tabled in Parliament and ordered to be published by Parliament.

Section 74AC provides that section 4O of the Parliamentary Committees Act 1968 (requiring reports to be laid before the Parliament) is deemed to have been complied with if, after a Committee has adopted a report, the chairman of the Committee gives a copy of the report to the Speaker and the President and causes the report to be tabled on the next sitting day of Parliament.

Section 74AD deals with the publication of reports that the Ombudsman is required to, or may, make to Parliament under the Ombudsman Act 1973.

Section 74AE deals in like manner to 74AC with the publication of reports of the Auditor-General made under the Audit Act 1994.

Section 74AF a person or body who has a duty under an Act to report to Parliament may give the report to the Speaker and the President. Such a report must be published and tabled on the next sitting day of Parliament.

Section 74AG a person or body who has a discretion under an Act to report to Parliament may give the report to the Speaker and the President. Approval of the Speaker or the President is required. Such a report must be published and tabled on the next sitting day of Parliament.

Section 74AH the Speaker and the President must notify all Members of Parliament in writing or by fax, e-mail or other electronic communication that a report or document has been received in accordance with the above sections.

Report to the Parliament pursuant to section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

[4]. Inserts a provision stating that the provisions in [3] amending the Constitution Act 1975 alter or vary section 85 of that Act and have effect as a direct amendments to that section.

Reports and documents published in the manner contemplated by the provisions in the Bill are absolutely privileged as if the reports or documents had been laid or tabled before Parliament in the ordinary manner. Absolute privilege acts as a bar to the bringing of legal proceedings that may otherwise be available absent the privilege.

For the avoidance of doubt that reports and documents tabled in the manner permitted by the new provisions attract parliamentary privilege and exclude the jurisdiction of the Supreme Court, the clause inserts a new section 85(8B) to state that the new sections alter or vary section 85 as a direct amendment.

The Committee notes that pursuant to section 85(5) of the Constitution Act 1975 as a direct amendment to the Constitution Act 1975 no specific section 85 declaration or statement in the second reading speech is mandatory.

The Committee has examined the proposed section 85 of the Constitution Act 1975 clause and notes the Minister’s statement in the Second Reading Speech and accepts that the provisions are consistent with the purposes of the Bill.

The Committee makes no further comment.


Co-operative Schemes (Administrative Actions) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. R. Hulls MLA
Portfolio responsibility: Attorney-General

Purpose

This Bill is part of a legislative response to the decision of the High Court in The Queen v Hughes (2000) 171 ALR 155 and other related matters, which includes the Agricultural and Veterinary Chemicals (Victoria) (Amendment) Bill and the Commonwealth Agricultural and Veterinary Chemicals Legislation Amendment Bill 2001.

The Bill ensures that functions or powers are not imposed on Commonwealth authorities and officers in connection with administrative actions under the schemes if their imposition would exceed the legislative powers of the State, and validates any such previous invalid administrative action.

The Committee notes the following comments from the Second Reading Speech –

As Members will be aware having recently debated and passed the Corporations (Commonwealth Powers) Bill 2001, recent legal challenges and decisions of the High Court of Australia have cast doubt on the constitutional framework which supports the Corporations Law. These decisions, particularly the decision in The Queen v. Hughes, have also cast doubt on the constitutional framework supporting other cooperative schemes.

In the Hughes case, the High Court held that conferral of a power coupled with a duty on a Commonwealth officer or authority by a state law must be referable to a Commonwealth head of power. The decision in Hughes has cast doubt on the ability of Commonwealth officers or authorities to exercise some functions under various cooperative schemes entered into between Victoria and the Commonwealth.

The purpose of the Co-operative Schemes (Administrative Actions) Bill 2001 is to validate past actions undertaken by Commonwealth officers or authorities under certain state laws relating to various cooperative schemes, to the extent necessary to give their actions the same effect as they would have had if they had been taken by duly authorised state officers or authorities. The Bill will also ensure that the rights of all persons are as though administrative actions taken by commonwealth officers or authorities had been taken by duly authorised state officers or authorities.

The Bill also provides for other cooperative schemes that may be affected by the Hughes case to be included under the bill by proclamation of the Governor in Council, as the schemes are identified.

Content and Committee comment

[Clauses]

[2]. The provisions in the Bill will commence by proclamation.

The Committee notes that by virtue of this provision, the Agricultural and Veterinary Chemicals (Victoria) (Amendment) Bill will commence by proclamation.

The Committee notes that the commencement of the Bill is dependent on the passage of complementary Commonwealth legislation. The Committee has no objection to the use of a commencement by proclamation clause in the circumstances.

[4]. Defines the relevant State Acts to which the Bill applies, namely, the Agricultural and Veterinary Chemicals (Victoria) Act 1994 and any other State Act declared by proclamation of the Governor in Council. This will enable the relevant commencement time for the validation under a proposed relevant State Act to be declared by proclamation.

The Committee notes that this clause will allow the Bill to apply to ‘relevant State Acts’ and that the definition of relevant State Acts includes any Act specified in a proclamation published in the Government Gazette.

As such the Bill will effectively validate past acts and omissions (clauses 4 and 6) by means of proclamation, and in the process cloak those acts or omissions with an amendment to section 85 of the Constitution Act 1875 providing a statutory immunity from liability and proceedings in the Supreme Court (clauses 13 and 14).

The Committee notes that it has a statutory reporting responsibility pursuant to sections 4D(a)(v) of the Parliamentary Committees Act 1968 to report on any Bill introduced in the Parliament which the Committee considers may insufficently subject the exercise of legislative power to parliamentary scrutiny and to report on any Bill pursuant to section 4D(b) of the Parliamentary Committees Act 1968 which repeals alters or varies section 85 of the Constitution Act 1975.

The Committee considers it may be problematic for the Committee to scrutinise and report on Acts proclaimed under clause 4. Further the Committee doubts that it would have jurisdiction to report on such Acts given that they would not be Bills introduced in the Parliament but rather Acts identified by proclamation. In this respect the Committee notes that other than Acts introduced between 3 November 1999 and 31 December 1999 it has otherwise no current jurisdiction to report on Acts.

The Committee is also concerned that the clause may constitute a ‘Henry VIII’ clause permitting legislative acts to occur by means of subordinate instruments without parliamentary authority, other than the authority to legislate by means of proclamation. Validating actions taken under primary legislation may be characterised as the exercise of legislative power and the exercise of legislative power by means of proclamation may be an inappropriate delegation of legislative power within the meaning of section 4D(a)(iv) of the Parliamentary Committees Act 1968.

The Committee is concerned in respect to a number of matters.

  1. Whether it is constitutional within the meaning of section 85 of the Constitution Act 1975 to provide an immunity from liability and proceedings by means of a proclamation identifying an Act as a ‘relevant State Act’ (clause 4). Further whether within the meaning of section 4D(b)(iii) of the Parliamentary Committees Act 1968 this raises an issue as to the jurisdiction of the Supreme Court, and the full implications of that issue.

  2. Whether the clause may be contrary to section 4D(a)(v) of the Parliamentary Committees Act 1968 in that it may insufficiently subject the exercise of legislative power to parliamentary scrutiny.

  3. Whether the Committee is able to discharge its statutory reporting responsibility under 4D(b) of the Parliamentary Committees Act 1968 in the event that Acts are proclaimed as ‘relevant State Acts’.

  4. Whether the validation, by means of proclamation, of acts and omissions taken under the authority of primary legislation is not an inappropriate delegation of legislative power within the meaning of section 4D(a)(iv) of the Parliamentary Committees Act 1968.

  5. The Committee also seeks information as to why the Acts that may be proclaimed cannot be identified and placed in a schedule to a Bill or brought to the attention to the Parliament in a manner amenable to Parliamentary scrutiny.

The Committee will write to the Attorney-General to seek further information concerning these matters.

[6]. Provides that the proposed Part 2 (sections 6 to 10) applies to previous invalid administrative actions, namely any such actions taken or purportedly taken under a relevant State Act before the commencement time in relation to that Act.

[8]. Provides that every invalid administrative action to which Part 2 applies has (and is deemed always to have had) the same force and effect as it would have had if it had been taken by a duly authorised State authority or officer of the State.

The clause does not in terms validate administrative actions taken by Commonwealth authorities and officers, but rather attaches to the actions retrospectively the same force and effect as would have ensued had the actions been taken by State authorities and officers.

The Committee notes the retrospective validating provisions in Part 2 and accepts that they do no more than validate anything done or omitted to be done prior to the commencement of the provisions in the Bill, and that were considered lawfully done or omitted to be done prior to the High Court’s decision in ‘Hughes’.

The Committee accepts that the amending provision does not trespass unduly upon rights and freedoms within the meaning of section 4D(a)(i) of the Parliamentary Committees Act 1968.

[15]. Empowers the making of regulations for the purposes of the proposed Act.

Report to the Parliament pursuant to section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

[13]. Provides that the proposed Act does not give rise to any liability against the State arising from the enactment of the Bill or the operation of a proclamation under [4].

[14]. States that it is the intention of [13] to alter or vary section 85 of the Constitution Act 1975.

The Committee notes the following comments from section 85 statement in the Second Reading Speech –

Proposed clause 13 of the Bill is intended to alter or vary section 85 of the Constitution Act 1975 to the extent necessary to prevent the bringing before the Supreme Court of any proceedings against the State of Victoria in respect of an administrative action validated by this Bill. The reason for preventing the bringing of any proceedings is to protect the State from potential liabilities arising out of past administrative actions undertaken by Commonwealth officers or authorities under state- cooperative scheme laws.

The Government considers the Co-operative Schemes (Administrative Actions) Bill 2001 as being vital to restore certainty to the effective operation of various cooperative schemes to which Victoria is a party.

The Committee has requested further information in respect to clause 4 and pending a response from the Attorney-General makes no formal report whether the section 85 of the Constitution Act 1975 clause is appropriate or otherwise.

The Committee makes no further comment.


Corporations (Administrative Actions) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. R. Hulls MLA
Portfolio responsibility: Attorney-General

Purpose

The object of this Bill is to give validity to certain potentially invalid administrative actions taken before the commencement of the proposed Act by Commonwealth authorities or officers acting under powers or functions conferred on them by laws of the State relating to corporations.

For further background information see Alert Digest No.3 of 2001 (pages 6-8) and the preamble to the Corporations (Commonwealth Powers) Bill introduced on 20 March 2001.

The High Court’s decision in Hughes

In The Queen v Hughes (2000) 171 ALR 155, the High Court indicated that where a State gave a Commonwealth authority or officer a power to undertake a function under State law together with a duty to exercise the function, there must be a clear nexus between the exercise of the function and one or more of the legislative powers of the Commonwealth set out in the Commonwealth Constitution.

This Bill provides that every invalid administrative action taken under the current or previous scheme has (and is deemed always to have had) the same force and effect as it would have had if it had been taken by a State authority or officer of the State on which or on whom the relevant function or power had been conferred.

This provision overcomes any doubts about the validity of administrative actions by Commonwealth authorities or officers under the current and previous schemes. Other jurisdictions propose to introduce similar legislation to achieve a uniform effect.

This Bill preserves rights and liabilities potentially affected by invalid administrative actions, and specifically confirms the validity of the registration or incorporation of companies under the current and previous schemes.

This Bill applies to administrative actions taken before the commencement of the proposed Corporations legislation. The validity of future actions by Commonwealth authorities and officers will be assured by the reference of matters to the Commonwealth Parliament by the Corporations (Commonwealth Powers) Bill proposed to be enacted by each State. Both Victoria and New South Wales have enacted this legislation. The Corporations (Commonwealth Powers) Act 2001 (NSW) came into operation on 4 April 2001 and the new Corporations legislation has been introduced into the Commonwealth Parliament in reliance on that reference of powers by New South Wales.

Content and Committee comment

[Clauses]

[2]. Provides that the Act comes into operation immediately before the Corporations Act 2001 (Cth) (the Commonwealth Act) comes into operation.

The Committee notes the Bill is dependent on the commencement of Commonwealth legislation and is part of a co-operative Commonwealth, States and Territories agreement by which the States refer their corporations powers to the Commonwealth Parliament. The Committee accepts the need for the contingent commencement provision in this Bill.

[3]. Defines certain words and expressions used in the proposed Act. The expression invalid administrative action is defined as an administrative action that was taken before the commencement of the proposed Act by a Commonwealth authority or officer pursuant to a function or power conferred under the current or previous scheme (the relevant function or power), and that is invalid because its conferral on the Commonwealth authority or officer is not supported by a head of power in the Commonwealth Constitution.

[4]. Deals with the application and operation of the proposed Act. The Act binds the Crown. The Act extends to affect rights and liabilities that are or have been the subject of legal proceedings but does not affect rights and liabilities arising between parties to legal proceedings heard and finally determined before the commencement of the proposed Act to the extent to which they arise from, or are affected by, an invalid administrative action.

[5]. Every invalid administrative action has (and is deemed always to have had) the same force and effect as it would have had if it had been taken by a duly authorised State authority or officer of the State. The clause does not in terms validate administrative actions taken by Commonwealth authorities and officers, but rather attaches to the actions retrospectively the same force and effect as would have ensued had the actions been taken by State authorities and officers.

The Committee notes the effect of the provision and other provisions in the Bill retrospectively validate past invalid administrative actions taken before the commencement of the proposed Commonwealth Act.

[6]. Declares that the rights and liabilities of all persons are (and always have been) for all purposes the same as if every invalid administrative action had been taken by a duly authorised State authority or officer of the State.

[7]. Specifically declares that [5 and 6] extend to the registration, purported registration, incorporation or purported incorporation of corporations made by administrative actions taken prior to the commencement of the Commonwealth Act.

Note

The formation of corporations was held by the High Court in State of New South Wales v The Commonwealth of Australia (1990) 169 CLR 482 to lie outside the legislative competence of the Commonwealth Parliament. This constitutional limitation is one of the major reasons for the Federal/State co-operative corporations schemes that have been in place since the early 1960’s in one form or another.

Report to the Parliament pursuant to section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

[10]. Provides that the proposed Act does not give rise to any liability against the State.

[11]. Declares that it is the intention of [10] to alter or vary section 85 of the Constitution Act 1975.

Proposed clause 10 of the Bill is intended to alter or vary section 85 of the Constitution Act 1975 to the extent necessary to prevent bringing before the Supreme Court any proceedings against the State of Victoria in respect of an administrative action validated by this Bill. The reason for preventing the bringing of any proceedings is to protect the State from potential liabilities arising out of past administrative actions undertaken by Commonwealth officers or authorities.

The Bill applies to administrative actions taken before the commencement of the proposed corporations legislation. The validity of future actions by Commonwealth authorities and officers will be assured by the reference of matters to the Commonwealth Parliament by the Corporations (Commonwealth Powers) Act 2001, which each state is proposing to enact and by transitional amendments to the current scheme being included in the Corporations (Consequential Amendments) Bill.

The Committee has examined the proposed section 85 of the Constitution Act 1975 clause and notes the Minister’s statement in the Second Reading Speech and accepts that the provisions are consistent with the purposes of the Bill.

The Committee makes no further comment.


Corporations (Ancillary Provisions) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. R. Hulls MLA
Portfolio responsibility: Attorney-General

Purpose

The purpose of the Bill is to enact ancillary provisions, including transitional provisions, relating to the proposed new corporations legislation to be enacted by the Commonwealth Parliament following references of matters relating to corporations made by the States under section 51 (xxxvii) of the Commonwealth Constitution.

The Victorian reference is made under the Corporations (Commonwealth Powers) Act 2001 (assented to on 8 May 2001). That Act refers to the Commonwealth Parliament certain matters relating to corporations, corporate regulation and financial products and services. New South Wales has enacted a similar Act and the other States are to introduce corresponding legislation. The Commonwealth proposes to enact, under the powers conferred by these references and other powers available to it, a Corporations Act 2001 (Cth) and an Australian Securities and Investments Commission Act 2001 (Cth).

This Bill, together with the Corporations (Commonwealth Powers) Act 2001, a Corporations (Consequential Amendments) Bill and a Corporations (Administrative Actions) Bill, make up the legislative package needed in Victoria for the new corporations arrangements.

The Committee notes the following comments from the Second Reading Speech –

The effect of this Bill is twofold.

Firstly, the Bill updates references in Victorian legislation from the old Corporations Law regime to the new Commonwealth Corporations Act.

Secondly, the new Corporations Act states, that is not intended to cover the field in the area of corporations.

This means that any indirect inconsistencies between the Commonwealth Act and any Victorian Act do not necessarily result in the invalidity of the Victorian provisions.

However, as a result of the referral of corporations power, any direct inconsistencies between Victorian legislation and the Commonwealth Act will result in invalidity due to the operation of section 109 of the Commonwealth constitution, which provides that the Commonwealth provision is to prevail.

In order to protect these Victorian provisions, some legislation needs to be amended to insert declarations that the Corporations Act is not to apply.

Content and Committee comment

[Clauses]

[2]. The proposed Act comes into operation immediately before the new Commonwealth Corporations Act.

The Committee notes the Bill is dependent on the commencement of Commonwealth legislation and is part of a co-operative Commonwealth, States and Territories agreement by which the States refer their corporations powers to the Commonwealth Parliament. The Committee accepts the need for the contingent commencement provision in this Bill.

[7]. Preserves all accrued rights and liabilities under the current corporations legislative scheme (the scheme) and legal proceedings in respect to those rights and liabilities under the scheme may be commenced or continued. The clause also cancels certain rights and liabilities where an identical right or liability is substituted by the new Commonwealth legislation. It also terminates certain legal proceedings where equivalent legal proceedings are deemed to have been brought under the Commonwealth legislation in the same court.

[9]. Preserves certain court proceedings despite the cessation of operation of the national scheme laws and for certain court orders to cease to have effect.

[10]. Saves existing court rules made under the national scheme laws (i.e. the current Corporations Law scheme).

[22]. Enables regulations to be made under the Act consequentially amending certain other statutory rules without complying with Part 2 (Preparation of Statutory Rules) of the Subordinate Legislation Act 1994. Without this clause it would be necessary for each statutory rule to be amended by a separate statutory rule.

Power to amend certain statutory rules

(1) The Governor in Council, on the recommendation of the Minister, may make regulations amending a statutory rule made by the Governor in Council in the exercise of a power conferred by any Act.

(2) The Minister may make a recommendation under sub-section (1) only if he or she considers that each amendment proposed to be made by the regulations is consequential on the enactment, or the proposed enactment, by the Parliament of the Commonwealth of the new Corporations Act or the new ASIC Act.

(3) Part 2 of the Subordinate Legislation Act 1994 does not apply to regulations made under this section.

(4) Nothing in this section prevents a statutory rule from being amended otherwise than by regulations made under this section, including an amendment of a kind referred to in sub-section (2).

Note

Part 2 of the Subordinate Legislation Act 1994 deals with the preparation of statutory rules, the need for consultation under the Premier’s guidelines, regulatory impact statements (RIS) their content, public notices in respect to RIS and exemptions and exceptions in respect to the need to prepare RIS.

 

The Committee accepts that the regulation making powers allowing exemption from Part 2 of the Subordinate Legislation Act 1994 are appropriate to give effect to the transitional purposes of the Act and are necessary as a consequence of the new Corporations Act 2001 (Cth).

[25]. Enables regulations to be made for the purposes of the proposed Act.

The regulations may modify the operation of the transitional provisions contained in Part 2 (sections 6 to 12) and may facilitate the operation of State laws under the regime provided by the new Commonwealth legislation.

25. Regulations

(1) The Governor in Council may make regulations for or with respect to any matter or thing required or permitted by this Act to be prescribed or necessary to be prescribed to give effect to this Act.

(2) Without limiting sub-section (1), the regulations may provide that certain provisions of Part 2 are taken to be modified as set out in the regulations. Those provisions then have effect as if they were so modified.

The Committee notes the regulation making power provided in clause 25(2) permitting modification of the provisions in Part 2 of the Bill by regulation. The Committee is aware that the provision mirrors the identical provision in clause 1409(3) of the proposed Commonwealth Corporations Bill as tabled in the New South Wales Parliament.

Whilst the Committee is mindful of the complexities involved in this Bill and associated Bills complementing the referral of corporations powers to the Commonwealth Parliament it nevertheless points out that the provision may constitute an inappropriate delegation of legislative power within the meaning of section 4D(a)(iv) of the Parliamentary Committees Act 1968. If such a provision is desirable or necessary it may be preferable for a sunset clause to be attached to any provision allowing the modification or amendment of Acts by means of regulation or subordinate instruments.

The Committee will write to the Attorney-General to seek further information concerning the necessity to use such a regulation making power in this instance.

The Committee makes no further comment.


Corporations (Consequential Amendments) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. R. Hulls MLA
Portfolio responsibility: Attorney-General

Purpose

The purpose of the Bill is to make amendments to a number of Acts consequential on the proposed new corporations legislation to be enacted by the Commonwealth following references of matters relating to corporations made by the States under section 51 (xxxvii) of the Commonwealth Constitution.

This Bill, together with the Corporations (Commonwealth Powers) Act 2001, a Corporations (Ancillary Provisions) Bill and a Corporations (Administrative Actions) Bill, make up the legislative package needed in Victoria for the new corporations arrangements.

Also see comments on the 2 previous Bills in this Digest and the report on the Corporations (Commonwealth Powers) Act 2001 in Digest No. 3 of 2001.

The Committee also notes the following comments from the Second Reading Speech –

The Corporations (Consequential Amendments) Bill amends over 120 Acts that contain references to the Corporations Law, or to a previous corporations law scheme, or that otherwise need amendment because of the change from a state-based to a commonwealth-based system of corporations law.

This wide-ranging amendment of the statute book is being made so that the new arrangements for a national Corporations Law are more readily understood as they apply to the text of state acts. The alternative, and less satisfactory approach would have been to rely on interpretation provisions of a general nature without direct amendment of individual acts.

Content and Committee comment

[Clauses]

[2]. The provisions in the Bill come into operation by proclamation.

The Committee has previously noted the need or desirability of related corporations powers referral legislation to have flexible commencement provisions. The Committee considers that the commencement provision in this Bill is acceptable under the circumstances.

[3]. Sets out the Acts specified in the headings in the Schedule to be amended for the purposes of the Bill.

Schedule

The Schedule sets out the consequential amendments necessary to various Victorian Acts that contain references to corporations legislation so that those references operate in future as references to Commonwealth law as enacted in the proposed Corporations Act 2001 (Cth) and Australian Securities and Investments Commission Act 2001 (Cth).

The Schedule –

  • amends provisions referring to the Corporations Law, or any part of it, so that they refer in future to the Corporations Act 2001 (Cth), or the relevant part of it;

  • corrects references to particular provisions of the Corporations Law so that they are read in future as references to the correct provisions of the Corporations Act 2001 (Cth) (this includes amendments consequential on the Corporate Law Economic Reform Program Act 1999 (Cth) (CLERP));

  • makes similar amendments and corrections in relation to existing references to the Companies (Victoria) Code and other Code Acts;

  • in accordance with Part 1.1A of the proposed Corporations Act 2001 (Cth) of the Commonwealth, continues certain existing exemptions, exceptions and exclusions from the operation of the Corporations Law;

  • re-enacts provisions in Acts that apply particular provisions of the Corporations Law as if they were part of those Acts, so that the provisions continue to apply as State law;

  • makes other miscellaneous adjustments necessary for the new corporations scheme,

The schedule does not amend every reference in the statute book to the Corporations Law or its predecessors. The Corporations (Ancillary Provisions) Bill contains a safety net translation for references that are not directly amended. This means that unamended references to the Corporations Law will be read as including a reference to the new Corporations Act, unless the context otherwise requires. However, there are some references to the Corporations Law that have been identified as continuing to be correct as they currently read, whether because they are historically correct or for any other reason, and these will be preserved by regulations made under the Corporations (Ancillary Provisions) Bill.

Report to the Parliament pursuant to section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

Items 53.19 and 97.17 in the Schedule respectively amend the Gaming and Betting Act 1994 and the Rail Corporations Act 1996.

The Committee notes the following comments in the section 85 statement in the Second Reading Speech –

Item 53.19 inserts a new section 141(2) into the Gaming and Betting Act 1994. That new section states that it is the intention of section 62 of that Act, as it applies to part 4 of that Act as amended by the Bill, to alter or vary section 85 of the Constitution Act 1975.

Section 62 of the Gaming and Betting Act 1994 provides that no liability attaches to the minister, the Victorian Casino and Gaming Authority, the licensee under that Act or any officer or auditor of the licensee for any act or omission in good faith in the exercise or discharge or purported exercise or discharge of a power or duty under part 4 of that Act. Part 4 deals with the regulation of shareholdings. As part 4 is being amended by the Bill, section 62 will have a new application following the amendments.

The reason for altering or varying the jurisdiction of the Supreme Court so that it cannot entertain actions against a person specified in section 62 is to ensure that the maximum levels of shareholdings stipulated in part 4 can be enforced by a relatively simple procedure and without prejudice to the interest of other shareholders.

Item 97.17 of the Schedule to the Bill inserts a new section 105(2) into the Rail Corporations Act 1996. That new section states that it is the intention of section 100(5), as it applies to a determination of the Office of the Regulator-General (ORG) under part 5 of that Act as amended by the Bill, to alter or vary section 85 of the Constitution Act 1975.

Section 100(5) provides that a determination of ORG under part 5 cannot be challenged or called into question. As part 5 is being amended by the Bill, that section will have a new application following the amendments.

The reason for altering or varying the jurisdiction of the Supreme Court to prevent it from entertaining challenges to a determination of ORG under part 5 is to ensure that access to the rail and tram infrastructure cannot be delayed or jeopardised through the inherent time delays involved in judicial review. This is necessary to ensure that the introduction of new transport services is not delayed or threatened. Removing the ability to review the regulator's determination also removes the potential for operators to constantly seek review of access terms and conditions in the hope of obtaining more favourable determinations.

The Committee has examined the proposed section 85 of the Constitution Act 1975 clause and notes the Minister’s statement in the Second Reading Speech and accepts that the provisions are consistent with the purposes of the Bill.

The Committee makes no further comment.


Duties (Amendment) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. J. Brumby MLA
Portfolio responsibility: Treasurer

Purpose

The object of the Bill is to make technical amendments to the Duties Act 2000 (the Act), prior to its commencement on 1 July 2001. The amendments clarify a number of the provisions within the Act, as well as make certain adjustments, where necessary, to ensure that the Victorian legislation is consistent with other jurisdictions. The Bill makes some minor policy changes, including providing a new exemption for transfers of dutiable property resulting from the amalgamation of industrial organisations.

The Bill also makes a minor technical amendment to the Land Tax Act 1958.

Content and Committee comment

[Clauses]

[2]. Parts 1 and 3 of the Bill come into operation on Royal Assent. Part 2 comes into operation on 1 July 2001.

[8]. Inserts a new section 48A in the Act, which exempts from duty all transfers of dutiable property made pursuant to the amalgamation of employee or employer organisations under the Workplace Relations Act 1996 (Cth).

[19]. Inserts new sections 234A and 234B in the Act to exempt from duty an application for the transfer of registration of a motor vehicle made as a consequence of the amalgamation of two or more industrial organisations under the Workplace Relations Act 1996 (Cth).

The Committee notes the following comments from the Second Reading Speech –

A new exemption from duty across all areas of liability is proposed for trade unions and employer associations which transfer dutiable property pursuant to amalgamations under the Workplace Relations Act 1996 (Cth). This exemption applies in most other jurisdictions. New South Wales, for example, exempts transfers of land and shares, but not motor vehicles. It is proposed that Victoria would exempt all transfers of dutiable property. The revenue impact of this proposal is likely to be minimal.

[26]. Repeals Part 4 of Chapter 12 and abolishes the use of duty stamps for court documents. Duty will not be paid by cash, cheque or by other electronic means.

[32]. Amends section 3 of the Land Tax Act 1958 by inserting a new sub-section (5A) providing that, despite anything to the contrary in the Land Tax (Equalization Factors) Regulations 2000, the prescribed equalization factor for City of Melbourne land for the current land tax year is 1·06.

The Committee notes the following comments from the Second Reading Speech –

The Bill also makes a minor, but significant, amendment to the Land Tax Act 1958.

On 2 April 2001, the Valuer-General advised the commissioner of state revenue that the equalisation factor for the City of Melbourne was incorrect. The equalisation factor provided was 1.14, when, in fact, it should have been 1.06.

Prior to receiving the Valuer-General's advice, the Commissioner had issued approximately 8000 land tax assessments in relation to City of Melbourne land. The assessments, calculated correctly in accordance with the law, are nonetheless based upon the incorrect equalisation factor and thus overvalue City of Melbourne land by approximately 8 per cent than if the correct factor had been used.

The Bill will correct this error.

Taxpayers will not be inconvenienced because the commissioner will adjust their final instalment notice or refund payments where appropriate.

The Committee makes no further comment.


Public Notaries Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. R. Hulls MLA
Portfolio responsibility: Attorney-General

Purpose

The Bill deals with the appointment of public notaries and provides for their appointment and enrolment by the Supreme Court, and for those purposes amends the Legal Practice Act 1966 the Instruments Act 1958 and the Evidence Act 1958.

The Committee notes the following comments from the Second Reading Speech –

Honourable Members may be surprised to hear that a Victorian who wants to be appointed as a public notary must apply to the Archbishop of Canterbury in England. The role of the Archbishop in appointing notaries dates back to the 1530s when King Henry VIII broke away from Rome. Unfortunately, only Victoria and Queensland still continue this archaic procedure under which the appointment of Australians, for the purpose of notarial acts in Australia, is made by a foreign authority.

Applicants will also be required to complete a course of study approved by the Council of Legal Education. The Society of Notaries has already had preliminary discussions with the Leo Cussen Institute about developing an appropriate course.

Rather than create a new bureaucratic body to regulate notaries, the existing structures in place for regulating legal practitioners will be relied on. If a notary ceases to hold a practising certificate authorising them to practise as a principal, they will not be entitled to practise as a notary. Similarly, the Bill provides that if a person is removed from the roll of legal practitioners, they will also be removed from the roll of notaries.

Finally, the Bill deems existing notaries to be appointed for a period of six months from the commencement date. Within that period, a notary can sign the roll of notaries without needing to make an application to the Chief Justice.

Note

Notaries certify as to the legal effect of documents for international purposes, frequently for use in foreign courts. The essential function of notarial acts is to provide an international guarantee of the authenticity and legality of those documents.

Typical services a notary would perform today include attesting declarations or affidavits, attesting execution of documents and preparation of ships' protests. In many countries, properly executed notarial acts are accepted as conclusive evidence of the facts witnessed. With the continuing emphasis on international trade, it is expected that the role of notaries in a commercial context will grow in importance for Victoria.

In an archaic system that dates back to the 1530s when King Henry VIII broke away from Rome, Victorian notaries are still appointed by the Archbishop of Canterbury in England. There is no governing legislation in Victoria.

A current criterion for appointment is also contrary to National Competition Policy guidelines, in that it requires an applicant to demonstrate a geographic need for notarial services.

In 1996 the Scrutiny of Acts and Regulations Committee (SARC) was asked to review the role and appointment of public notaries. SARC's report recommended the enactment of Victorian legislation dealing with the appointment of notaries.

In summary the Committee’s 1966 report recommended that –

  • only qualified lawyers should be eligible for appointment as notaries;
  • applicants should have at least 5 years legal experience;
  • the numbers of notaries should not be limited by reference to geography or population;
  • appointments should be made by the Supreme Court; and
  • applicants should be required to undergo an approved course of training.

Content and Committee comment

[Clauses]

[2]. The Act will come into operation by proclamation but not later than 31 July 2002.

[4]. Sets out the criteria for appointment as a public notary. A person must be a legal practitioner of at least 5 years standing as a principal and have completed to the satisfaction of the Board of Examiners constituted under the Legal Practice Act 1996 a prescribed course of study approved by the Council of Legal Education constituted under that Act.

[5]. The Board of Examiners may, in a particular case, dispense with or vary the requirement that an applicant have held for 5 years a practising certificate entitling them to practise as a principal. The dispensation or variation can be made subject to conditions.

[6]. A person who has obtained a certificate of eligibility from the Board of Examiners may apply within 30 days to the Supreme Court constituted by the Chief Justice for appointment as a public notary.

[7]. A person may appeal to the Supreme Court constituted by the Chief Justice against a decision of the Board of Examiners in respect of an application for a certificate of eligibility.

[9]. A person who is not named on the roll of public notaries and who does not hold a current practising certificate entitling them to practise as a principal, commits an offence if they hold themselves out as a public notary or if they practise as a public notary.

[10]. Declares, for the avoidance of doubt, that a public notary is to be recognised as having the same powers, authorities, duties and functions as a public notary or notary public had prior to the commencement of the proposed Act.

[11]. Provides for a standard regulation making power in relation to matters arising under the proposed Act.

The Committee accepts that the regulation making powers are appropriate to give effect to the purposes of the Act.

[12]. Deems a person who was a validly appointed, practising notary immediately prior to the commencement date, to be a public notary appointed under the proposed Act. That deeming lasts for 6 months or until the person signs the roll of public notaries within that 6 month period. Such a person will be entitled to sign the roll within 6 months after commencement of the proposed Act without having to make an application under the proposed Act.

[13]. Makes a number of consequential amendments to the Legal Practice Act 1996. The Board will be required to note on the register each legal practitioner who is a public notary and the date of their appointment. Members of the public can search the register to determine if a person is eligible to practise as a public notary. In addition, the Council of Legal Education will be given the power to make rules in relation to approving courses of study required for appointment as a public notary. [13(2) and (3)]. Contains consequential amendments to the Evidence Act 1958 and the Instruments Act 1958 that change references to ‘notary public’ to ‘public notary’.

The Committee makes no further comment.


National Parks (Marine National Parks and Marine Sanctuaries) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. S. Garbutt MLA
Portfolio responsibility: Minister for Environment and Conservation.

Purpose

The Bill amends the National Parks Act 1975 (the Act) and other Acts to establish marine national parks and marine sanctuaries covering some 52,500 hectares of Victoria’s marine waters.

The Committee received a late submission on behalf of the Victorian Abalone Divers Association Inc. and will defer consideration of this Bill until Monday 4 June 2001.

The Committee makes no further comment.


Racial and Religious Tolerance Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. S. Bracks MLA
Portfolio responsibility: Premier

Purpose

The Bill –

  • prohibits vilification of people on the grounds of race or religion, subject to specified exceptions;

  • provides a means of civil redress for victims of racial or religious vilification under the existing mechanism for conciliation of complaints under the Equal Opportunity Act 1995;

  • exempts from liability conduct engaged in reasonably and in good faith for the purposes of discussion or debate of any matter in the public interest or for a genuine academic, artistic, religious or scientific purpose;

  • provides a criminal offence for the incitement of racial hatred;

  • prohibits victimisation of a person who makes a complaint of racial or religious vilification or takes required action in connection with any proceedings before a court or tribunal under this Bill;

  • makes consequential amendments to the Equal Opportunity Act 1995.

Content and Committee comment

[Clauses]

[2]. The Act will commence operation on proclamation but not later than 1 January 2002.

[3]. Provides for various definitions including for "detriment", "race" and ‘religious belief and activity’.

‘Race’, includes – colour, descent or ancestry, nationality or national origin, ethnicity or ethnic origin, if 2 or more races are collectively referred to as a race – each of those distinct races, that collective race.

‘Religious belief or activity’, meansholding or not holding a lawful religious belief or view, engaging in, not engaging in or refusing to engage in a lawful religious activity.

Note

The Committee notes that in determining what criteria may constitute a ‘religion’ for the purposes of the law, assistance may be gained from the High Court’s decision in The Church of New Faith v. The Commissioner of Pay-Roll Tax (Victoria) (1982) 154 CLR 120.

"For the purposes of the law, the criteria of religion are twofold: first, belief in a supernatural Being, Thing or Principle; and second, the acceptance of cannons of conduct which in order to give effect to that belief, though canons of conduct that offend against ordinary laws are outside the area of any immunity, privilege or right conferred on the grounds of religion. (Headnote)"

"No single characteristic can be laid down as constituting a formularized criterion of whether a particular system of ideas and practices constitutes a religion, but the following criteria are helpful: that the particular collection of ideas and/or practices involve belief in the supernatural, i.e. a belief that reality extends beyond that which is capable of perception by the senses; that the ideas relate to man’s nature and place in the universe and his relation to things supernatural; that the ideas are accepted by adherents as requiring or encouraging them to observe particular standards or codes of conduct or to participate in specific practices having supernatural significance; that however loosely knit and varying in beliefs and practices adherents may be, they constitute an identifiable group or groups; and that the adherents themselves see the collection of ideas and/or practices as constituting a religion." (pages 173-174)

"religious belief is satisfied by belief in supernatural Things or Principles and not to be limited to belief in God or in a supernatural Being otherwise described" (p.140)

"Charlatanism is a necessary price of religious freedom, and if a self-proclaimed teacher persuades others to believe in a religion which he propounds, lack of sincerity or intergrity on his part is not incompatible with the religious character of the beliefs, practices and observances accepted by his followers." (p. 141).

 

The Committee notes the test for ‘religion’ enunciated in The Church of New Faith case is very broad however the qualification "lawful’ in the Victorian Bill may place a limitation to this broad definition and may exclude extreme forms of religion.

[4]. States the objects of the Act –

(a) to promote the full and equal participation of every person in a society that values freedom of expression and is an open and multicultural democracy;

(b) to maintain the right of all Victorians to engage in robust discussion of any matter of public interest or to engage in, or comment on, any form of artistic expression, discussion of religious issues or academic debate where such discussion, expression, debate or comment does not vilify or marginalise any person or class of persons;

(c) to promote conciliation and resolve tensions between persons who (as a result of their ignorance of the attributes of others and the effect that their conduct may have on others) vilify others on the ground of race or religious belief or activity and those who are vilified.

(2) It is the intention of the Parliament that the provisions of this Act are interpreted so as to further the objects set out in sub-section (1).

[5]. Specifies that a contravention of this Act does not create any separate civil or criminal liability, except as created by the Act.

[6]. Provides for the Act to bind the Crown.

Unlawful Racial and Religious Vilification – Civil Remedies

[7 and 8]. Conduct that incites* hatred against*, serious contempt for*, revulsion or severe ridicule of* a person or class of persons on the ground of the race or religious belief or activity of that person or class of persons is prohibited. This conduct may be constituted by a single act or a series of acts over time and may include communications using the Internet.

The conduct may occur in or outside Victoria, e.g. a message may be sent from outside Victoria to vilify a person or group living in Victoria.

When such conduct occurs, the person or group vilified can seek civil redress by making a complaint under this Act.

Note

Some guide on the interpretation of the terms (*) that may constitute liability under these sections may be gained from decisions of the NSW Anti-Discrimination Tribunal in Kazak v. Faifax Publications Limited [2000] NSWADT 77 and Western Aboriginal Legal Services [2000] NSWADT 102.

The civil remedies in the Bill require that a person will need to establish on the balance of probabilities, that by a public act on the grounds of race or religion, the defendant incited hatred against, serious contempt for, or revulsion or severe ridicule of, that person or class of persons in our outside Victoria. The defendant may counter a prima facie case by establishing a defence under clause 11 that the defendants conduct was reasonable and done in good faith according to one of the exceptions [11 (a), (b) or (c)].

[9]. States that in determining whether a person has contravened [7 or 8], the motive for the conduct is irrelevant. It is also irrelevant whether the race or religious belief or activity of the vilified person or group was the only or dominant ground for the conduct.

[10]. For the purposes of [7 and 8] it is irrelevant whether or not the person made an assumption about the race or religious belief or activity of another person or class of persons that was incorrect at the time that the contravention is alleged to have taken place.

Exceptions – Public Conduct – Onus of Proof with Defendant

[11]. Provides an exception in relation to certain kinds of conduct. Conduct is excepted from civil liability if the person establishes that the conduct was engaged in reasonably and in good faith in the course of an artistic performance, in the course of a discussion or statement of a matter in the public interest or for a genuine academic, artistic, religious or scientific purpose. The exception is available to any person who engages in discussion or debate for one of these purposes. The provision is not confined to discussion by artists, academics, scientists or reporting by the media. The onus lies on the person who claims an exception to prove that the exception applies.

Note

This provision requires, an objective review, that the conduct must have been engaged in "reasonably and in good faith". The exception will not apply to conduct or statements which are immoderate or inflammatory. For example, the exception will not protect academic debate which, when objectively considered, appears designed to be inflammatory or offensive to an ethnic or religious group.

The provision also requires that a statement genuinely made for an academic, artistic, religious or scientific purpose must, when objectively considered, be made for the true purpose of that discussion. The exception will not apply to conduct disguised as discussion for one of these purposes if it is not engaged in reasonably and in good faith. For example, a member of a religious body cannot use the exception for religious discussion to racially vilify an ethnic group.

[12]. Provides an exception for private conduct. Conduct or a conversation occurring in circumstances in which the parties can be taken to have intended it to be seen or heard only by themselves, and no-one else, will escape liability. The intention of the parties is determined objectively, taking into consideration of all the circumstances in which the conduct or conversation took place. As in [11] the onus lies on the person who claims the exception to prove that the exception applies.

The Committee notes the reverse onus of proof defences in clauses 11 and 12 and accepts that knowledge for grounds of justification rests exclusively with the defendant.

The Committee notes the question of implied constitutional rights to communications as an endnote to the report on this Bill.

The Bill deals with rights and obligations with respect to speech and public discourse, altering some existing rights and seeking to create others. The Committee believes this is a matter for the consideration of Parliament.

[See ‘Endnote’ for notes concerning the implied constitutional right to communication]

Victimisation – Prohibited

[14]. Defines victimisation as subjecting a person to detriment (which includes humiliation and denigration) or threatening to do so because that person has lodged a complaint or has taken any necessary step to pursue a complaint under the Act.

Aiding and Abetting Vilification or Victimisation

[15 and 16]. Prohibits the encouragement, authorisation or assistance of a person to contravene the prohibitions on vilification and victimisation. If a person encourages, authorises or assisted another person to contravene the prohibitions on vilification and victimisation that person will also be taken to have contravened those prohibitions.

Vicarious Liability for Vilification or Victimisation

[17]. Provides that an employer or principal will be vicariously liable for the conduct of an employee or agent which contravenes a prohibition on vilification and victimisation.

Defence to Vicarious Liability

[18]. Provides that an employer or principal will not be vicariously liable for contravention of the prohibitions on vilification and victimisation by an employee or agent if the employer or principal proves that he or she took reasonable precautions to prevent the contraventions.

The Committee notes that the provisions impose liability on an employer or principal for acts by their employees and or agents.

The Committee accepts that vicarious liability places a heavy but reasonable burden on employers and principals and in this respect the Committee notes the provision of a defence, on the balance of probabilities, that the employer or principal took reasonable precautions to prevent the employee or agent contravening the Act.

[19]. Sets out who may complain concerning a civil contravention [7 and 8] to the Equal Opportunity Commission (the Commission). Any person may lodge a complaint concerning conduct in relation to another person. Children or people with an impairment can have another person make the complaint on their behalf. A person can also authorise another person who was subject to the same conduct which contravened the Act to lodge a complaint on their behalf. Representative bodies can bring complaints on behalf of a person if they are authorised by that person and have an interest in the subject matter of the complaint.

[22]. A complaint may be made against an unincorporated association in the name of its president, secretary or other similar officer.

[23]. Applies Divisions 2 to 7 of Part 7 (sections 107 to 136) of the Equal Opportunity Act 1995 to ensure that the mechanisms for the conciliation and determination of complaints under that Act apply to a complaint under this Act.

Note

Important provisions of the Equal Opportunity Act 1995 that are incorporated by [23] are –

  • that the Commission may decline to hear complaints that are stale, frivolous, vexatious, misconceived or lacking in substance (s.108, 110).

  • The respondent may request the Commission to strike out the complaint (s.109).

  • On a matter of public importance the Minister may refer a complaint directly to the Victorian Civil and Administrative Tribunal (VCAT) whether the Commission has considered the complaint and whether or not the complaint is in the process of conciliation (s.111).

  • The Commission may conciliate a complaint and a conciliation agreement may be reached (s.112 to 118).

  • A complainant may seek an expedited determination of a complaint (s.119 to 123).

  • A party may seek to refer a complaint to VCAT directly without conciliation (s.124).

  • Division 5 deals with ‘Special complaints’ defined as complaints made by the Minister to the Tribunal or complaints having significant social, economic or financial effects on the community or a section of the Community. Complaints that involve issues of complexity and the resolution of which may set important precedents in the interpretation of the Act. Whether a compliant is ‘Special’ is to be determined by the President of VCAT (s.125 and 126).

  • VCAT may make interim orders pending conciliation and or hearing and determination by VCAT (s.131).

Orders VCAT may make –

The complaint be dismissed; the complaint proven and take no other action; that a person refrain from committing any further contravention of the Act; order the respondent to pay compensation for loss, damage or injury suffered as a consequence of the contravention; order the respondent to do anything in an order to redress any loss or damage suffered as a result of the contravention (s.136).

Serious Vilification Offences – Criminal Sanctions – [24 to 28]

[24 and 25]. Offences of serious racial or religious vilification respectively.

(1) A person (the offender) must not, on the ground of the race or religious belief or activity of another person or class of persons, intentionally engage in conduct that the offender knows is likely –

(a) to incite hatred against that other person or class of persons; and

(b) to threaten, or incite others to threaten, physical harm towards that other person or class of persons or the property of that other person or class of persons.

Penalty: In the case of a body corporate, 300 penalty units ($30,000); In any other case, imprisonment for 6 months or 60 penalty units ($6,000) or both.

(2) A person (the offender) must not, on the ground of the race or religious belief or activity of another person or class of persons, intentionally engage in conduct that the offender knows is likely to incite serious contempt for, or revulsion or severe ridicule of, that other person or class of persons.

Penalty: In the case of a body corporate, 300 penalty units; In any other case, imprisonment for 6 months or 60 penalty units or both.

(3) For the purposes of sub-sections (1) and (2), conduct--

(a) may be constituted by a single occasion or by a number of occasions over a period of time; and (b) may occur in or outside Victoria.

The sections create the offences of serious racial and religious vilification respectively. They define the offences as involving conduct that incites hatred against a person or group on the ground of the person's or group's race or religious belief or activity and threatens (or incites others to threaten) physical harm to the person or group or their property. The prescribed maximum penalty for both the offences is 60 penalty units or 6 months imprisonment or both (300 penalty units in the case of a body corporate).

In addition, conduct that incites feelings of serious contempt for, or revulsion or severe ridicule of, a person or group on the ground of the race of that person or group, is an offence. The prescribed maximum penalty is 60 penalty units or 6 months imprisonment or both (300 penalty units in the case of a body corporate).

The offender must intend the conduct in the knowledge that the promotion of these feelings of extreme dislike will be the likely result of the conduct. This conduct may include communications using the Internet.

[26]. Provides that an incorrect assumption made by a person engaging in vilifying conduct concerning the race or religious beliefs or activities of another person or class of persons is irrelevant in determining whether the person committed an offence against clause 24 or 25.

[27]. Deals with the liability of corporate bodies for an offence under [24 or 25]. Each officer of the corporation who directed or permitted the commission of the offence by the corporation is also guilty of an offence. A body corporate is taken to have engaged in the conduct constituting the offence and to have had the intention to commit the offence if the conduct was performed by one of its senior officers who had the requisite intention. This presumption will not apply if the body corporate establishes that it took reasonable precautions to avoid that conduct.

Issue of Search Warrants by Magistrates

[28]. Provides that s.465 of the Crimes Act 1958 applies to the offences in [24 and 25] as if they were indictable offences. This ensures that the power to obtain a search warrant in respect of an indictable offence extends to these offences.

Mens rea – The mental intent in criminal charges

In respect to the criminal offences of serious vilification the Committee notes the elements of the respective offences are only made out if the prosecution proves beyond reasonable doubt that the offender intentionally engaged in the conduct and that the offender knew it was likely to achieve the prohibited consequences. The Committee notes that ‘engage in conduct’ includes use of the Internet or e-mail to publish or transmit statements or material.

[30]. Amends the Equal Opportunity Act 1995 to ensure that the investigatory powers under that Act can be used by the Commission to investigate a contravention of the civil offences in clauses [7 and 8].

[31]. Provides that the education programs undertaken by the Equal Opportunity Commission include the elimination of racial and religious vilification.


Endnote

Does the Bill unreasonably or unduly abridge or limit freedom of speech or other communication?

Does the Bill infringe the implied constitutional protection of freedom of communication?

Notes

In Lange v. Australian Broadcasting Corporation (1997) 189 CLR 521 the High Court (the Court) considered the implied constitutional freedom of communication. In that case the Court held the Commonwealth Constitution protects freedom of communication between people concerning political or government matters which enables the people to exercise a free and informed choice as electors. However the Court also stated that the freedom is not absolute and may be limited. The Court enunciated tests to determine whether a law limiting or curtailing the implied freedom of communication will be valid or not.

The Committee also notes the relevant High Court judgments in Theophanous v. Herald & Weekly Times Ltd (1994) 182 CLR 104 and in Stephens v. West Australian Newspapers Ltd (1994) 182 CLR 211.

Chapter 1 of the Commonwealth Constitution establishes a representative elected form of government. Although in different terms a representative bicameral legislature is established in Victoria by Part II of the Constitution Act 1975.

Of particular interest concerning the implied freedom of communication in respect to the States is a passage in the High Court judgment in Stephens v. West Australian Newspapers Ltd (1994) 182 CLR 211 –

"And so long, at least, as the Western Australian Constitution continues to provide for a representative democracy in which the members of the legislature are ‘directly chosen by the people’ a freedom of communication must necessarily be implied in that Constitution, just as it is implied in the Commonwealth Constitution, in order to protect the efficacious working of representative democracy and government"

The Committee notes the following extracts from the headnote of the reporting of Lange’s case in the Australian Law Journal Reports.

The General Principle

"Freedom of communication on matters of government and politics is an indispensable incident of that system of representative government which the Constitution (ss 7, 24) creates by directing that members of the House of Representatives and of the Senate shall be "directly chosen by the people" of the Commonwealth and States respectively. Communications concerning political or government matters between the electors and the elected representatives, between the electors and the candidates for election, and between the electors themselves, were central to the system of representative government, as it was understood at Federation. Accordingly, ss 7, 24 and related sections, necessarily protect that freedom of communication which enables the people to exercise a free and informed choice as electors. Those sections do not confer personal rights on individuals: they preclude the curtailment of the protected freedom by the exercise of legislative or executive power. Other sections of the Constitution make it impossible to confine the receipt and dissemination concerning government and political matters to an election period"

There may be legitimate and reasonable limitations of the freedom

"The freedom of communication which the Constitution protects is not absolute. It is limited to what is necessary for the effective operation of that system of representative and responsible government provided for by the Constitution"

The tests and principles to be considered when limiting the freedom –

"(a) The freedom will not invalidate a law enacted to satisfy some other legitimate end if the law satisfies two conditions, namely – (i) the object of the law is compatible with the maintenance of the constitutionally prescribed system of representative and responsible government…; and (ii) the law is reasonably appropriate and adapted to achieving that legitimate object or end "

"(b) The test for determining whether a law infringes the constitutional implication of freedom of communication requires two questions to be answered, namely: (i) does the law effectively burden freedom of communication about government or political matters either in its terms, operation and effect? and, (ii) if the law effectively burdens that freedom, is the law reasonably appropriate and adapted to serve a legitimate end the fulfilment of which is compatible with the maintenance of the constitutionally prescribed system of representative and responsible government and the procedure prescribed by s 128 of the Constitution for submitting a proposed amendment of the Constitution to the decision of the people? If the first question is answered "yes", and the second "no", the law is invalid "

"Some judges have expressed the test as whether the law is reasonably appropriate and adapted to the fulfilment of a legitimate purpose. Others have favoured different expressions, including proportionality"

The Committee makes no further comment.


State Taxation Acts (Taxation Reform Implementation) Bill

Introduced: 16 May 2001
Second Reading Speech: 17 May 2001
House: Legislative Assembly
Minister introducing Bill: Hon. J. Brumby MLA
Portfolio responsibility: Treasurer

Purpose

The Bill –

  • makes amendments to the Pay-roll Tax Act 1971 by lowering the current pay-roll tax rate, raising the threshold and including in the base pre-January 1996 accrued leave, eligible termination payments, and the grossed-up value of fringe benefit payments, and to make other changes;

  • abolishes stamp duty on leases from 26 April 2001;

  • replaces the gaming machine levy under the Casino Control Act 1991 and Gaming Machine Control Act 1991 with a health benefit levy;

  • increases the land tax threshold of the Land Tax Act 1958;

  • amends the Duties Act 2000 for the prospective abolition of duty on unquoted marketable securities and mortgage duty.

Content and Committee comment

[Clauses]

[2]. Parts 1 (preliminary) and 4 (land tax) of the Bill come into operation on Royal Assent. Part 6 of the Bill (abolition of lease duty) is deemed to have come into operation on 26 April 2001. Parts 2 (health benefit levy), 3 (other than clause 6(4)) (duties amendments) and 5 (pay-roll tax amendments) of the Bill come into operation on 1 July 2001. Clause 6(4) of the Bill (marketable securities duty) comes into operation on 1 July 2003.

Part 2

Contains provisions making amendments to the Casino Control Act 1991 and the Gaming Machine Control Act 1991. The gaming machine levy has been renamed as the health benefit levy and the existing levy imposed on each gaming machine has been increased from $333.33 to $1,533.33 per annum. Additional revenue realised from this increased levy will be hypothecated for the purpose of funding the public health sector.

Part 3

Includes amendments to the Duties Act 2000. The Part repeals the lease duty provisions of the Duties Act 2000 (which are due to commence on 1 July 2001) because of the abolition of lease duty from 26 April 2001 (see Part 6 of the Bill). It also provides for the progressive abolition over the next 3 years of duty on unquoted marketable securities and on mortgages. Further, the new provisions ensure that a taxpayer has a right to a refund of duty paid under the Stamps Act 1958 in respect of the unused portion of a surrendered or forfeited lease. This right is limited to 3 years from the date of the surrender.

For the purposes of protecting revenue against the opportunistic surrender and forfeiture of leases by taxpayers, the new provisions also provide that refunds in respect of the unused portion of a lease cannot be granted where the lessee or an associate of the lessee continues to lease the same or substantially the same premises. Moreover, to limit the possibility of false claims, an application for refund must be accompanied by a declaration and the applicable lease or agreement for a lease on which duty was paid, with an appropriate penalty for a false declaration.

Part 4

Introduces amendments to the Land Tax Act 1958 to provide for an increase to the current land tax-free threshold effective from the 2002 calendar year. It raises the current land tax threshold of $85,000, providing that no land tax is payable by the owner of land if the total unimproved value of land is less than $125,000.

Part 5

Contains amendments to the Pay-roll Tax Act 1971. The amendments provide for two reductions in pay-roll tax rates: the first from 1 July 2001 and the second from 1 July 2003, and increase the current pay-roll tax threshold from 1 July 2003. Proposed new section 7(1)(i) reduces the current rate of 5·75% to 5·45% for wages paid or payable by employers after 30 June 2001 and before 1 July 2003. Proposed new section 7(1)(j) reduces this rate to 5·35% from 1 July 2003. The tax-free threshold will be increased from $515,000 to $550,000 from 1 July 2003.

Part 6

Amends certain provisions of the Stamps Act 1958 so that stamp duty on leases is abolished from 26 April 2001. Further, the amendments also ensure that taxpayers terminating their leases for genuine purposes are not disadvantaged by providing them with a right to a refund of stamp duty paid in respect of the unused portion of a surrendered or forfeited lease during the period 26 April 2001 to 30 June 2001. This right to a refund is preserved for 3 years from the date of the surrender, and as provided by the amendments contained in the Bill to the Duties Act 2000. Refunds in respect of the unused portion of a lease cannot be granted where the lessee or an associate of the lessee continues to lease the same or substantially the same premises. The amendments also dissuade taxpayers from making false claims when applying for a refund, as penalties may be imposed in such instances.

The Committee notes the retrospective application of Part 6 to 26 April 2001 and that the provisions are beneficial in nature.

The Committee makes no further comment.


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