Cunningham & Ors v Commonwealth of Australia & Anor [2016] HCA 39 (12 October 2016)
Last Updated: 12 October 2016
HIGH COURT OF AUSTRALIA
FRENCH CJ,
KIEFEL, BELL, GAGELER, KEANE, NETTLE AND GORDON
JJ
BARRY THOMAS CUNNINGHAM & ORS PLAINTIFFS
AND
COMMONWEALTH OF AUSTRALIA & ANOR DEFENDANTS
Cunningham v Commonwealth of Australia
[2016] HCA
39
12 October 2016
S140/2015
ORDER
The questions stated by the parties in the special case dated 4 February
2016 and referred for consideration by the Full Court be
answered as
follows:
Question One
Do any, and if so which, of the following laws and Determinations of the
Remuneration Tribunal constitute or authorise an acquisition
of any, and if so
what, property of the plaintiffs, or any of them, otherwise than on just terms,
within the meaning of s 51(xxxi) of the Constitution:
- Remuneration
Tribunal Act 1973 (Cth), ss 7(1A), 7(1B), 7(1C) and 7(2A);
- Remuneration
and Other Legislation Amendment Act 2011 (Cth), s 3 (insofar as it made the
amendments or repeals provided for in Sched 2, items 1, 16A, 17A, 19, 20,
21(2));
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012
(Cth), s 3 (insofar as it made the amendments or repeals provided for in Sched
2, items 1, 2, 3, 5, 6, 7, 8 and 9);
- Members
of Parliament (Life Gold Pass) Act 2002 (Cth), s 11(2) (as originally
enacted);
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012
(Cth), s 3 (insofar as it made the amendments or repeals provided for in Sched
1, item 6);
- Determination
2012/02, Pt 2 (cl 2.2);
- Determination
2012/03, Pt 2 (cl 2.3), Pt 3 (cl 3.1);
- Determination
2012/15, Pt 1 (cl 1.3 and cl 1.4 (insofar as it relates to cl 1.3));
- Determination
2013/13, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1);
- Determination
2014/10, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1);
- Determination
2015/06, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1)?
Answer
No.
Question Two
If the answer to Question One is yes, to what, if any relief are the
plaintiffs, or any of them, entitled in the proceedings?
Answer
Unnecessary to answer.
Question Three
Who should pay the costs of the proceedings?
Answer
The plaintiffs.
Representation
A J Myers QC and T O Prince for the plaintiffs (instructed by Hazan
Hollander)
J T Gleeson SC, Solicitor-General of the Commonwealth and
D F C Thomas for the first defendant (instructed by Australian
Government
Solicitor)
Submitting appearance for the second defendant
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Cunningham v Commonwealth of Australia
Constitutional law (Cth) – Legislative power – Acquisition of
property on just terms – Where amendments to Parliamentary Contributory
Superannuation Act 1948 (Cth) and Remuneration Tribunal Act 1973
(Cth) and Determinations by Remuneration Tribunal modified method by which
allowances paid to retired members of Parliament calculated
– Where
enactment of and subsequent amendment to Members of Parliament (Life Gold
Pass) Act 2002 (Cth) modified entitlement conferred on retired members of
Parliament to payment of travel expenses – Whether amendments and
Determinations constitute or authorise acquisition of property otherwise than on
just terms within meaning of s 51(xxxi) of Constitution.
Words and phrases – "acquisition of property", "inherently defeasible",
"inherently liable to variation", "just terms", "Life
Gold Pass", "parliamentary
allowance", "property", "retiring allowance", "subject to this Act", "until the
Parliament otherwise provides".
Constitution, ss 48, 51(xxxi), 51(xxxvi), 66.
Members of Parliament
(Life Gold Pass) Act 2002 (Cth), s 11(2).
Members of Parliament (Life
Gold Pass) and Other Legislation Amendment Act 2012 (Cth), s
3.
Parliamentary Contributory Superannuation Act 1948 (Cth), ss 18,
22T.
Remuneration and Other Legislation Amendment Act 2011
(Cth), s 3.
Remuneration Tribunal Act 1973 (Cth), ss 7(1A), 7(1B),
7(1C), 7(2A).
- FRENCH
CJ, KIEFEL AND BELL JJ. Each of the four plaintiffs served as a member of the
House of Representatives of the Commonwealth
Parliament for not less than
eight years between 1969 and 2001, although in the case of the first and
second plaintiffs, their service
was over two separate periods. Three of the
plaintiffs also held parliamentary offices and two were Ministers of State for a
time.
- Whilst
serving as members of Parliament the plaintiffs became entitled to, and
received, a parliamentary allowance and a parliamentary
office holder allowance
and/or a ministerial salary under various legislation as amended from time to
time[1]. In
addition the plaintiffs also received certain other entitlements, such as for
travel, accommodation and office facilities.
Whilst in receipt of the
parliamentary allowance and, where relevant, parliamentary office holder
allowance and/or ministerial salary,
the plaintiffs paid a proportion of what
was received to the Commonwealth pursuant to the Parliamentary Contributory
Superannuation Act 1948 (Cth) ("the Superannuation
Act")[2].
- On
ceasing to serve as a member of Parliament, whether because they were not
re-elected or had resigned, each of the plaintiffs became
entitled to a retiring
allowance under the Superannuation Act, together with an additional
retiring allowance for former parliamentary office holders and/or Ministers of
State (together the "retiring
allowances")[3].
The fourth and third plaintiffs, who retired respectively in 1990 and 2001, were
also entitled on retirement to use a "Life Gold
Pass" for domestic travel at
Commonwealth expense.
4 The plaintiffs contend that they have rights in the nature of property,
within the meaning of s 51(xxxi) of the Constitution, in respect of their
retiring allowances and, in the case of the third and fourth plaintiffs, their
Life Gold Passes. The plaintiffs
further contend that changes made by certain
legislative
provisions[4] and
by Determinations made by the Remuneration Tribunal pursuant to the
Remuneration Tribunal Act 1973
(Cth)[5] ("the
Remuneration Tribunal Act") effect alterations of those property rights or
interests which amount to acquisitions of their property otherwise than on just
terms, within the meaning of
s 51(xxxi)[6].
The
parliamentary allowance
- Section 48
of the Constitution itself provided for an initial allowance to be paid to
members of
Parliament[7].
Even at Federation, payment of some kind of remuneration to members of
Parliament was regarded not as a modern innovation, but
as an essential aspect
of democratic
government[8].
During the Convention Debates, there was discussion about whether the payment
was really an allowance for the reimbursement of
expenses, as opposed to
salary[9], but
the wording of s 48 retained the general term "an allowance". The term
might be thought to cover both.
6 The allowance was fixed by s 48 at a sum to be paid "[u]ntil the
Parliament otherwise
provides"[10].
Section 51(xxxvi)[11]
contains a grant of power in respect of matters for which the Constitution makes
provision "until the Parliament otherwise provides". That phrase conveys that
the Commonwealth Parliament is free to legislate
from time to time as may appear
appropriate.
- Quick
and Garran[12]
were of the view that neither the principle that a parliamentary allowance
should be provided nor the amount of such an allowance
were intended as
permanent constitutional provisions and that the Commonwealth Parliament could
reduce, increase or abolish the allowance.
This special case does not require
consideration of the exact breadth of the Parliament's powers in this regard.
The provisions
in question do not effect an extinguishment of the retiring
allowances. It may, however, be observed that in fact the allowance
provided
since Federation has not always been increased by legislation and that this
accords with the discretion generally given
to the Parliament.
- The
Parliament initially "otherwise provided" in 1907, when the allowance under
s 48 was
increased[13].
Since then the allowance has for the most part been increased, but it has also
been reduced at certain points, such as during the
Great
Depression[14],
evidently because of prevailing social conditions.
- In
1973 the Remuneration Tribunal, created under the Remuneration Tribunal Act, was
given power to determine parliamentary allowances. Section 7(1) of that
Act provides:
"The Tribunal shall, from time to time as provided by this Part, inquire into,
and determine, the allowances (including allowances
in accordance with
section 48 of the Constitution) to be paid out of the public moneys of the
Commonwealth to members of the Parliament by reason of their membership of the
Parliament
or by reason of their holding particular offices
..."
It does not appear to be in dispute that
s 7(1) is authorised by s 51(xxxvi) and s 48 of the Constitution,
together, so far as concerns the parliamentary and associated allowances.
- As
the terms of s 7(1) imply, the allowances which may be the subject of a
Remuneration Tribunal Determination are not limited to these allowances, which
have been treated as parliamentarians' remuneration for some time. The annual
parliamentary allowance is sometimes called "salary"
or "basic salary", as is
the Minister's salary. The Remuneration Tribunal also determines the allowances
to be provided for travel,
electorate, office and other expenses.
- A
Determination of the Remuneration Tribunal is a legislative instrument, which
until 5 August 2011 was subject to disallowance by
either House of
Parliament[15].
Pursuant to s 7(9)(b), allowances provided for in a Determination under
s 7(1) are to be paid out of Consolidated Revenue.
The
retiring allowances
- The
same head of legislative power which supports the parliamentary allowance
supports provisions of the Superannuation Act concerning benefits to retired
members of
Parliament[16].
However, a retiring allowance has only been payable since the passing of that
Act, in
1948[17].
- Section 18(1)
of the Superannuation Act has at all relevant times provided
that:
"Subject to this Act, a member who ceases to be entitled to a parliamentary
allowance shall be entitled to benefits in accordance
with this
section."
The benefits are to be paid by the
Commonwealth[18].
- The
principal benefit referred to in s 18(1) is a retiring allowance payable
during the member's lifetime at the rate applicable according to the scale in
sub-s (6)[19].
A minimum period of service is required for eligibility for a retiring
allowance. Sub-section (6) provides that the rate of retiring
allowance is
a percentage of the rate of parliamentary allowance "for the time being payable
to a member". The percentage provided
in the scale depends upon the number of
years served.
- Provision
is also made in the Superannuation Act for the payment of additional retiring
allowances to former parliamentary office
holders[20] and
to former Ministers of
State[21],
which are calculated by reference to a percentage of the allowance or salary for
the time being payable to the holder of office
or
Minister[22].
- Section 22T
was inserted into the Superannuation Act in 1996. It is not necessary to set it
out. It is common ground that its purpose was to protect retired
parliamentarians who were
in receipt of a retiring allowance and/or an
additional retiring allowance from the effect that decreases in real terms in
the rate
of a parliamentary allowance, a parliamentary office holder allowance
or ministerial salary would have on the rate of those retiring
allowances.
- The
amount of benefits payable by way of retiring allowance may be reduced in
certain circumstances, such as where a person entitled
to a retiring allowance
becomes a member of a State Parliament or a Territory Legislative
Assembly[23] or
where they hold an office of profit under a State or under the
Commonwealth[24].
- The
method of calculating the retiring allowance has changed over time. Originally
the retiring allowance was fixed by s 18 as a weekly
amount[25]. It
is not necessary to detail all the changes but, by way of example, in some of
the subsequent iterations of s 18, the retiring allowance has been fixed to a
percentage of the parliamentary allowance to which a retired parliamentarian was
entitled
immediately before he or she became entitled to a retiring allowance,
the percentage being calculated on the basis of the age of
the
member[26];
later the percentage was fixed on the basis of the period of parliamentary
service[27].
- The
contributory nature of schemes for retirement benefits has also varied over
time. When it was first passed, the Superannuation Act made provision for a
Parliamentary Retiring Allowances
Fund[28] out of
which pensions were payable. Members of Parliament paid, by instalments, an
annual sum to the
Fund[29] and
the Commonwealth was required to make provision for 60% of what was to be paid
by way of
pension[30].
This scheme ended in
1973[31].
- The
legislative scheme under which the plaintiffs were required to pay a proportion
of their parliamentary and other allowances (at
the rate of 11.5% for those that
served less than 18 years) did not have a fund and the Commonwealth did not make
contributions to
it. The plaintiffs made their payments to the Commonwealth, by
deduction from their allowances, and the Commonwealth paid the retiring
allowances provided for by the Superannuation Act.
The changes to
the retiring allowances
- In
2011, the Remuneration and Other Legislation Amendment Act 2011 (Cth)
amended the Superannuation Act and the Remuneration Tribunal Act. The effect of
the amendments was to confer power on the Remuneration Tribunal to determine the
"parliamentary base salary" of members
of Parliament. The term was defined in
the Remuneration Tribunal Act, as amended, as referable to the annual allowances
payable for the purpose of s 48 of the Constitution and as identified in
the relevant Determination as base salary. The Remuneration Tribunal Act now
also
provided[32]
the Remuneration Tribunal with power to determine that a portion of
parliamentary base salary is not "parliamentary allowance" for the
purposes of the Superannuation Act. The definition of "parliamentary allowance"
in the Superannuation Act was amended accordingly. Similar amendments were made
in 2012 by the Members of Parliament (Life Gold Pass) and Other Legislation
Amendment Act 2012 (Cth) ("the 2012 Act") to the additional retiring
allowances payable to parliamentary office holders and
Ministers[33]
(together with the above amendments, "the 2011/12 amendments").
- It
would appear that the purpose of these amendments is that particular allowances
made to serving members, such as electorate and
office allowances, which are not
referable to the circumstances of retired members, should not be automatically
passed on through
the parliamentary allowance as a retirement
benefit[34].
- It
will immediately be appreciated that there now exists the possibility that the
retiring allowances could be reduced through the
exercise by the Remuneration
Tribunal of its powers. It is possible that the amount of parliamentary
allowance for the purposes
of the calculation in s 18(6) of the
Superannuation Act may be reduced. Whether there is a reduction in the retiring
allowance may depend on the initial determination of what is parliamentary
base
salary. Similarly, the amount of the parliamentary office holder allowance or
ministerial salary may be reduced for the purposes
of the calculations in
s 18(9) and (10).
- The
terms of the 2011/12 amendments do not oblige the Remuneration Tribunal to fix
parliamentary base salary and determine a portion
which is not parliamentary
allowance. In its Determinations since 2011 the Remuneration Tribunal has done
so, but the Determinations
have not resulted in a reduction of the retiring
allowance. Although the plaintiffs contend that the amount payable was less
than
would have been payable before the 2011/12 amendments, they do not attempt
to show how that conclusion is reached. It is, in any
event, not necessary to
their arguments to do so. Their point is that the rights which they previously
had have been modified so
that the quantum of their retiring allowances can be
less than before. A question which arises is whether that to which the
plaintiffs
are entitled has always been subject to
modification.
The Life Gold Pass
- The
"Life Gold Pass" has its origins in long-standing executive arrangements made
between the Commonwealth and State governments
for the provision of travel
privileges to certain serving, and later retired, parliamentarians. The
privileges have at times been
controversial. Until 1976 the Life Gold Pass had
no connection to statute and was supported only by Commonwealth executive
powers.
- In
1976 the Remuneration Tribunal enquired into, and determined, the question of
parliamentary allowances under s 7(1) of the Remuneration Tribunal Act.
Section 7(4)(b) provides that, if the Minister considers a further matter
is significantly related to that question, the Remuneration Tribunal shall
also
enquire into the further matter and either determine it or report upon it. The
Minister requested the Remuneration Tribunal
also to enquire into the matter of
the Life Gold Pass.
- The
Remuneration Tribunal dealt with the issue of the Life Gold Pass in Pt 2 of
its Determination 1976/6, which was headed "Entitlements". Part 1 was
headed "Salaries and Allowances". The Remuneration Tribunal determined that a
member, on retirement from the Parliament, shall
be eligible for the issue of a
Life Gold Pass entitling the member to travel "at official expense" for
non-commercial purposes within
Australia on scheduled air, rail and motor coach
and other
services[35].
The number of trips which could be undertaken was not limited in any way. The
period of qualification for members of the House
of Representatives was stated
to be 20 years or the life of seven
Parliaments[36],
but the entitlement to use the Pass was suspended until the member retired from
Parliament[37].
- Aspects
of this Determination were altered by the Remuneration Tribunal at various times
thereafter. In 1993 it determined that
an annual cap of 25 domestic return
trips should apply to those members to whom a Life Gold Pass issued on or after
1 January
1994[38].
- At
issue in these proceedings are the provisions made by statute in 2002 and 2012.
Section 11(2) of the Members of Parliament (Life Gold Pass) Act 2002
(Cth) ("the 2002 Act") as originally enacted restricted all holders of a Life
Gold Pass, other than a former Prime Minister, to a maximum of 25 domestic
return trips per annum. That Act also contained a "historic shipwrecks
clause"[39],
which provided for compensation in the event that the Act effected an
acquisition other than on just terms and such acquisition
might, on that
account, be invalid. The 2012 Act further amended s 11(2) to reduce the number
of trips to
10[40] and
bring to an end the issue of passes for members of Parliament after 6 March
2012[41].
- Because
of the date of the fourth plaintiff's retirement in February 1990, he was not
affected by the 1993 Remuneration Tribunal
Determination. The extent of his use
of the Life Gold Pass before the 2002 Act was therefore unlimited but it has now
been restricted. In contrast, the third plaintiff retired in February 2001 and
whilst his
use was never unlimited it has now been restricted by the 2012
Act.
The plaintiffs' arguments
Retiring allowances
- Section 51(xxxi)
does not operate to protect a person's entitlement to payments under a
Commonwealth statute from change. It applies
only to statutes which contain
provisions for the acquisition of property and it guarantees that where the
Commonwealth legislates
to acquire property, for a constitutionally permissible
purpose, it must do so on just terms.
- The
question which arises from s 51(xxxi) is therefore whether the 2011/12
amendments are laws with respect to the acquisition of
property. This enquiry
necessitates a close analysis of the "property" which is said to have been
acquired. Both enquiries –
as to the rights making up the property and
the character of the law changing them – require, in the first place,
consideration
of the nature of the entitlement to retiring allowances under the
Superannuation Act.
- The
plaintiffs' case is that they became entitled, upon retirement, to receive a
benefit, payable fortnightly during their lifetime,
by way of retiring
allowances. Each of the retiring allowances was defined by reference to a
specified percentage of the parliamentary
allowance and, where relevant,
parliamentary office holder allowance and ministerial salary which was for the
time being payable.
The plaintiffs' statutory right, arising under the
Superannuation Act, to receive money is a presently existing debt and it is
therefore property. Further, the plaintiffs contend that they each have
a
vested chose in action to recover monies from the Commonwealth on account of the
contributions made by them under the Superannuation Act.
- The
plaintiffs' argument then proceeds, that the 2011/12 amendments and the
Determinations made thereafter effected a substantial
modification to that
property, by reducing the amount which might be payable by way of retiring
allowances and at the same time giving
a corresponding advantage to the
Commonwealth. They point out that it is not necessary that property be
extinguished in order to
effect an acquisition. It is sufficient that a
corresponding advantage, of a proprietary nature, accrues to the Commonwealth,
such
as where the Commonwealth's liability as a debtor is reduced.
- It
is no doubt correct to say that former members of Parliament could recover
contributions made by them if for some reason they
did not receive benefits
under the Superannuation Act, for example because they did not become eligible
for benefits. Section 14A of the Superannuation Act acknowledges this.
The making of contributions may be regarded as a condition of eligibility for
benefits under the Superannuation Act, but there the connection to what is paid
by way of benefits ends. In the scheme provided for by the Superannuation Act
there is no connection between the contributions made and the quantum of the
benefits which are payable.
- The
plaintiffs' comparison of their entitlements under the Superannuation Act with a
debt which is reduced, which is to say partially extinguished, implies that
their entitlements have at all times been of a
fixed and certain kind and that
these entitlements were, to an extent, taken away. This description is apt to
mislead. The 2011/12
amendments do not purport to reduce the plaintiffs'
entitlements to retiring allowances. They operate to alter the method by which
the quantum of the retiring allowances is calculated.
- The
plaintiffs do not identify when and how their rights became fixed and certain.
Had they suggested that this occurred at the
time they first became entitled to
retiring allowances, it would seem to follow that they would not be entitled to
the variations
which increased the allowances, but they do not contend for this.
Their argument consists principally of assertions which have no
basis in the
Superannuation Act or in the terms of the sections that provide the entitlement
for which they claim.
- The
plaintiffs accept that the parliamentary allowance, on which the calculation of
the retiring allowance was based before and after
the 2011/12 amendments, may be
either increased or decreased at any time, with the consequence that the
retiring allowance can be
reduced. That is because s 7(1) of the
Remuneration Tribunal Act is expressed in terms such that the Remuneration
Tribunal shall "from time to time" enquire into and determine parliamentary
allowances.
The parliamentary allowance, as the plaintiffs accept, is subject
to variation. The same is true for the parliamentary office holder
allowance
and ministerial salary. The question is whether, having regard to the terms of
the Superannuation Act, the retiring allowances stand in any different
position.
- Retiring
allowances are, and at all relevant times have been, benefits payable "in
accordance with" s 18 of the Superannuation Act and are benefits which are
expressed by s 18(1) to be "[s]ubject to this Act". A reference to "this
Act" clearly enough refers to the whole Act and the form which it may take from
time to
time[42].
Amendments which may be made to the Superannuation Act provisions respecting
retiring allowances relevantly include the method of calculating the allowance.
This is the answer to the
plaintiffs' contention that their rights are free from
any condition permitting a variation in the nature of a reduction of the value
of their benefits.
- More
generally the plaintiffs contend that any amendments which are made may not
effect an acquisition of their property without
compensation. However, their
argument assumes that s 51(xxxi) applies, which is the very question that
must first be addressed.
It is addressed by identifying the nature of the
rights making up the plaintiffs' property in order to determine whether the
changes
made to those rights by the 2011/12 amendments make those amendments
laws "with respect to" the acquisition of property.
- In
Attorney-General (NT) v
Chaffey[43],
the statute provided that "[s]ubject to this Part" (being Pt V) and "in
accordance with this Part", compensation "as is prescribed" was payable where a
worker suffers injury. "Prescribed" meant
prescribed by the Act or by an
instrument made under the Act. At the time of the employee's injury
compensation was to be calculated
by reference to the "normal weekly earnings"
of the employee. Amendments to the statute had the effect of excluding
superannuation
contributions made by the employer from the definition of "normal
weekly earnings" and therefore from the calculation of compensation.
In the
joint
judgment[44] it
was said that the expressions "subject to" and "in accordance with" Pt V
were naturally to be construed as identifying Pt V as amended from time to
time. Their Honours went on to add that the reference to "such compensation as
is prescribed" is naturally
to be construed as a reference to such compensation
as is prescribed from time to time. It followed that the method for quantifying
the amount of compensation payable to a worker had not been fixed in any
permanent form at the time the employee suffered injury
and was always subject
to variation.
- The
plaintiffs submit that the critical feature of Chaffey was not what the
words "subject to this Part" conveyed about the form that the statute would
take, but rather the fact that the compensation
payable was to be prescribed by
regulation, which may be understood to be subject to change. The submission
reflects neither a fair
reading of the joint judgment nor the meaning given to
the term "prescribed". The point made in Chaffey was that the method by
which the amount of compensation payable was derived was liable to change. That
would be so regardless of
the means by which the change was effected.
- The
term "property" in s 51(xxxi) has always attracted a liberal construction
in this
Court[45].
Some cases concerning s 51(xxxi) have drawn a distinction between rights
recognised by the general law and those which have no
existence apart from
statute and whose continued existence depends upon
statute[46].
The dichotomy is useful. Rights which have only a statutory basis are more
liable to variation than others. As was said in Chaffey, however, where
the asserted "property" has no existence apart from statute, further analysis is
imperative[47].
It is a truism that statutory rights, which are not constitutionally protected,
may be subject to variation or extinguished by legislative
action. There are,
however, some statutory rights which, having regard to their character and the
context and purpose of the statute
creating them, can be regarded as inherently
variable. Statutory remuneration falls into that category. So too does an
entitlement
to a retiring allowance.
- In
the joint judgment in
Chaffey[48]
it was pointed out that it could not be said that the prospect of subsequent
modification, or extinguishment, removes all statutory
rights from the scope of
s 51(xxxi). The question whether that provision was attracted depended
upon the nature of the right. In
The Commonwealth v WMC Resources
Ltd[49], as
in Chaffey, the right stipulated in the statute depended for its content
upon the will of the legislature from time to time. The same may be
said here
of the provisions for calculating retiring allowances from time to time.
- The
plaintiffs take issue with descriptions which have been given to statutory
rights of this kind, as "inherently susceptible" to
modification and
extinguishment[50],
or "inherently
unstable"[51].
They argue that such phrases should be deprecated because they are misleading
and circular. All statutory provisions are liable
to amendment and all are
subject to s 51(xxxi), they contend.
- The
plaintiffs' submissions overlook that these descriptions identify within
particular statutory rights a feature which is critical
to their nature as
"property" for the purposes of the application of s 51(xxxi). If a right
or entitlement was always, of its nature,
liable to variation, apart from the
fact that it was created by statute, a variation later effected cannot properly
be described
as an acquisition of property. The Commonwealth does not as a
result of an amendment effecting a variation receive a release from
an existing
liability and therefore acquire property, as the plaintiffs contend. The
Commonwealth's liability corresponds with the
variation made.
- The
statutory right to which the plaintiffs refer was said to be subject to
increase, but it was not liable to be decreased. An
argument that the
Commonwealth Parliament could not decrease the retiring allowances has no basis
in the Superannuation Act or in s 48 of the Constitution. It would appear
to accord those benefits the same status and protection as is given to the
remuneration of constitutional office
holders under ss 3 and 72 of the
Constitution[52],
but those provisions are in terms which differ from those of s 48. The
plaintiffs' case, in any event, is not based upon any constitutional protection
but rather upon statutory rights of a proprietary
nature, and ignores the
limitations inherent in those rights.
- The
2011/12 amendments are laws which effect modifications of the plaintiffs' and
others' entitlements to retiring allowances, but
they are not laws with respect
to the acquisition of property and s 51(xxxi) has no application to them.
Given the view we have reached on the plaintiffs' arguments, it is not necessary
to consider the Commonwealth's
broader argument, that s 51(xxxi) does not
qualify ss 48 and 51(xxxvi) as heads of power.
Life Gold
Passes
- The
third and fourth plaintiffs argue, by analogy with their case regarding the
retiring allowances, that the effect of s 7(9) of the Remuneration Tribunal
Act is that, upon becoming eligible for a Life Gold Pass, a holder has a vested
right to the benefits provided by the Pass and that the
object and effect of the
2002 Act and the 2012 Act was to acquire those plaintiffs' property in
respect of the Passes. On extinguishment of that right the Commonwealth
acquired a correlative
benefit of a proprietary kind.
- Assuming,
for present purposes, that the Remuneration Tribunal's 1976 Determination with
respect to the Life Gold Pass was made under
s 7(1) of the Remuneration
Tribunal Act, the plaintiffs' argument would suffer from the same defects as
their argument respecting the retiring allowances. Section 7(1) provides
that the Remuneration Tribunal shall determine the allowances to be paid to
members of Parliament "from time to time as
provided by this Part", which
clearly enough implies that allowances are subject to variation. Indeed the
plaintiffs' arguments
concerning the retiring allowances accepted that
parliamentary allowances determined under s 7(1) were liable to variation,
by way of increase or decrease.
- It
would be sufficient to dispose of the plaintiffs' arguments with respect to the
Life Gold Pass for the reasons given with respect
to the retiring allowances.
The Commonwealth Parliament could legislate to alter the content of the right at
any time. However,
the plaintiffs' argument is founded upon an assumption that
s 7(1) applies to the Life Gold Pass as an allowance. Something more needs
to be said about the nature of a Life Gold Pass.
- It
appears to be common ground that s 7(1) of the Remuneration Tribunal Act
was authorised by ss 48 and 51(xxxvi) of the Constitution to the extent
that the Remuneration Tribunal made Determinations with respect to the Life Gold
Pass. The parties appear to accept
that the Determinations were made under
s 7(1).
- The
terms of s 7(1) refer to allowances to be paid out of public monies to
members of Parliament. Section 7(9) confirms that the allowances are
payments of money, to be paid in accordance with the Remuneration Tribunal's
Determination. A Life
Gold Pass, and the privileges which attach to it, is
arguably not an allowance within the meaning of these provisions.
- The
Remuneration Tribunal made its Determination in 1976 with respect to the matter
of the Life Gold Pass following a request by
the Minister under s 7(4)(b).
It will be recalled that this provision allows for a further Determination by
the Remuneration Tribunal of a matter which the Minister
regards as
"significantly related" to the principal question placed before the Tribunal,
namely the parliamentary allowance and,
inferentially, whether adjustments
should be made to it. Questions as to the Minister's view of the relationship
of a Life Gold
Pass with a parliamentary allowance may be put to one side. The
Determination made about the "matter" of the Life Gold Pass did
not make it a
Determination with respect to an allowance and the Remuneration Tribunal did not
treat it in that way.
- The
Remuneration Tribunal dealt with the matter of the Life Gold Pass as an existing
"entitlement" of some kind. The Life Gold Pass
had, in fact, been provided for
some time by the executive government although it was under no obligation to do
so. The 1976 Determination
dealt with matters of eligibility and the extent of
the benefits which were to be provided under it. Whilst the Determination was
no doubt intended to formalise the Life Gold Pass, to use a neutral term, it did
not alter what it had always been, namely a gratuity.
As such the Life Gold
Pass was a privilege of a kind which was liable not only to modification, but to
extinguishment.
Conclusion and orders
- The
questions stated for the opinion of the Court should be answered as
follows:
Question One: Do any, and if so which, of the following
laws and Determinations of the Remuneration Tribunal constitute or authorise
an
acquisition of any, and if so what, property of the plaintiffs, or any of them,
otherwise than on just terms, within the meaning
of s 51(xxxi) of the
Constitution:
a. Remuneration Tribunal Act 1973 (Cth), ss 7(1A), 7(1B), 7(1C) and
7(2A);
- Remuneration
and Other Legislation Amendment Act 2011 (Cth), s 3 (insofar as it made the
amendments or repeals provided for in Sched 2, items 1, 16A, 17A, 19, 20,
21(2));
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012
(Cth), s 3 (insofar as it made the amendments or repeals provided for in Sched
2, items 1, 2, 3, 5, 6, 7, 8 and 9);
- Members
of Parliament (Life Gold Pass) Act 2002 (Cth), s 11(2) (as originally
enacted);
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012
(Cth), s 3 (insofar as it made the amendments or repeals provided for in
Sched 1, item 6);
f. Determination 2012/02, Pt 2 (cl 2.2);
g. Determination 2012/03, Pt 2 (cl 2.3), Pt 3 (cl 3.1);
- Determination
2012/15, Pt 1 (cl 1.3 and cl 1.4 (insofar as it relates to
cl 1.3));
i. Determination 2013/13, Pt 2 (cl 2.2), Pt 3 (cl
3.3), Pt 4 (cl 4.1);
j. Determination 2014/10, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1);
k. Determination 2015/06, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1)?
Answer: No.
Question Two: If the answer to Question One is yes, to what, if any relief
are the plaintiffs, or any of them, entitled in the proceedings?
Answer: Unnecessary to answer.
Question Three: Who should pay the costs of the proceedings?
Answer: The plaintiffs.
GAGELER J.
Constitutional context
- Section
51(xxxi) of the Constitution, in providing for the Commonwealth Parliament to
have power to make laws "with respect to ... the acquisition of property on just
terms from any State or person for any purpose in respect of which the
Parliament has power to make laws", subjects the power of
the Parliament to make
any law "with respect to ... the acquisition of property" for any legislative
purpose to the condition that
the acquisition occur only "on just terms". The
just terms condition was "included to prevent arbitrary exercises of the power"
at the expense of the State or
individual[53]
and guarantees to an individual that any law answering the description of a law
with respect to the acquisition of his or her property
contains provisions
ensuring that the acquisition is on terms amounting to "a true attempt to
provide fair and just standards of
compensating or rehabilitating the individual
considered as an owner of property, fair and just as between him and the
government
of the
country"[54].
- To
answer the description of a law with respect to the acquisition of property
within the meaning of s 51(xxxi), a law must meet two basic conditions. First,
the law must authorise or effect an acquisition of property: the law must
provide
for the taking of property from a person and for the conferral of a
corresponding interest in property on the Commonwealth or on
another
person[55].
Second, that acquisition of property must fit within the conception of an
acquisition that can be on just terms: the acquisition
must be of a nature that
is consistent or congruent with provision of compensation or rehabilitation to
the former
owner[56].
- Whether
a law meets those two conditions is a question of substance which can involve
considerations of degree. Whether a legislative
alteration of a right of
property takes property from one person and confers a corresponding interest in
property on another person,
so as to constitute an acquisition of property,
turns in part on the characteristics of the right and in part on the extent of
the
alteration[57].
Whether a legislative acquisition of property is congruent with provision of
compensation or rehabilitation to the former owner
turns on whether acquisition
without compensating or rehabilitating the former owner is a necessary or
characteristic feature of
legislatively chosen means that are appropriate and
adapted to achieving some other objective within
power[58].
- If
those two conditions are met, a law may still not answer the description of a
law with respect to the acquisition of property.
There remains an ultimate
question of characterisation. For example, the law may fail to meet that
description because the acquisition
of property for which the law provides is no
more than incidental to or consequential upon the law's adjustment of competing
rights,
claims or obligations of persons in a particular relationship or area of
activity[59].
No universal discriminant has emerged to guide that ultimate question of
characterisation, and perhaps none can be expected.
- Where
a law does answer the description of a law with respect to the acquisition of
property, however, enactment of the law will
be beyond the power of the
Parliament unless the law complies with the just terms condition. That is
because, "by an implication
required to make the condition of just terms
effective", s 51(xxxi) "abstracts the power to support a law for the compulsory
acquisition of property from any other legislative
power"[60].
The operative principle of interpretation is
that[61]:
"when you have, as you do in par (xxxi), an express power, subject
to a safeguard, restriction or qualification, to legislate on a
particular
subject or to a particular effect, it is in accordance with the soundest
principles of interpretation to treat that as
inconsistent with any construction
of other powers conferred in the context which would mean that they included the
same subject
or produced the same effect and so authorized the same kind of
legislation but without the safeguard, restriction or qualification."
- Applied
to s 51(xxxi), that principle of interpretation fits both the inherently
expansive nature of a constitutional power to acquire property and the
purposes
served by its separate and qualified conferral. According to settled
understanding[62]:
"[Section] 51(xxxi) is not to be confined pedantically to the
taking of title by the Commonwealth to some specific estate or interest
in land
recognized at law or in equity and to some specific form of property in a
chattel or chose in action similarly recognized,
but that it extends to
innominate and anomalous interests and includes the assumption and indefinite
continuance of exclusive possession
and control for the purposes of the
Commonwealth of any subject of property. Section 51(xxxi) serves a double
purpose. It provides the Commonwealth Parliament with a legislative power of
acquiring property: at the same time
as a condition upon the exercise of the
power it provides the individual or the State, affected with a protection
against governmental
interferences with his proprietary rights without just
recompense. In both aspects consistency with the principles upon which
constitutional
provisions are interpreted and applied demands that the paragraph
should be given as full and flexible an operation as will cover
the objects it
was designed to effect. Moreover, when a constitution undertakes to forbid or
restrain some legislative course, there
can be no prohibition to which it is
more proper to apply the principle embodied in the maxim quando aliquid
prohibetur, prohibetur et omne per quod devenitur ad illud. In requiring
just terms s 51(xxxi) fetters the legislative power by forbidding laws with
respect to acquisition on any terms that are not just."
- Section
51(xxxi)'s abstraction of power in that way qualifies the generality of the
principle that the "power to make laws includes a power to unmake
them" and that
"the powers conferred on the Parliament under s 51 extend to the repeal, in part
or in whole, of what the Parliament has validly
enacted"[63].
The Parliament has ample power to create rights of property in the exercise of
other grants of legislative power. But the power
of the Parliament to acquire
property that it has created in the exercise of another grant of legislative
power is confined to s 51(xxxi).
- That
scope for another grant of legislative power to support a law for the creation
of property, but not the acquisition of property
within the scope of
s 51(xxxi), applies to the power granted by s 51(xxxvi) to make laws with
respect to parliamentary allowances and ministerial salaries, for which interim
provision was made in ss 48 and 66 of the Constitution, as much as it applies to
the other grants in s 51 and s 52 of the Constitution. Each is granted as a
plenary legislative power but each is expressly granted "subject to this
Constitution".
- Where
the Parliament exercises a legislative power to create a statutory right in the
nature of property, attention to the particular
statutory characteristics of
that statutory right is needed in order to determine whether a subsequent
legislative alteration of
the right meets the threshold condition of a law with
respect to the acquisition of property – that the law provide for the
taking of property and for the conferral of a corresponding interest in
property[64].
The statutory characteristics of a statutory right of property cannot be assumed
to mimic the characteristics of a common law right
of
property[65].
The statutory characteristics of the right must also be taken in their totality.
Unless the statute itself allows the person to
pick and choose, the person on
whom a statutory right is conferred cannot take the benefit of some
characteristics of the right and
deny the burden of
others[66].
- One
potential characteristic of a statutory right of property created in the
exercise of another grant of legislative power is that
the right may be created
on terms which make that right susceptible to administrative or legislative
alteration or extinguishment
without acquisition. That is to say,
susceptibility to alteration or extinguishment by subsequent administrative or
legislative
action might be a characteristic of the right that is created
– "inherent at the time of its creation and integral to the property
itself"[67].
Whether, and if so to what extent, a right of property created in the exercise
of another grant of legislative power is inherently
susceptible to
administrative or legislative alteration or extinguishment necessarily turns on
the construction of the legislation
creating that right: on its text, read in
its total context and in a manner which best achieves its legislative purpose or
object.
- Legislatively
created rights in the nature of accrued entitlements to payments from
consolidated revenue have been recognised to
be rights of
property[68].
Their legislative alteration, if to the financial benefit of the Commonwealth or
another person, may amount to an acquisition of
property[69].
Legislatively created rights of that nature have nevertheless been said to be
proprietary rights of a kind "which, as a general
rule, are inherently
susceptible of
variation"[70].
That general rule can be no more than a presumption of legislative intention
which informs the construction of statutes by which
such rights are created.
The strength of the presumption must vary with the context. The presumption is
undoubtedly strong in relation
to rights to receive pensions, allowances and
benefits in the nature of social welfare payments, which can be regarded as
having
been conferred from the outset on the basis that they might be
redistributed or withdrawn at any
time[71]. The
presumption can apply at best weakly in relation to accrued entitlements to
receive payments which can properly be regarded
as having formed part of a
package of remuneration for services rendered.
- The
textual significance of a particular statutory right being
conferred "subject to" the whole or some part of the legislation which
created that right must also vary with the statutory context. The words are
commonly taken to extend to the legislation as originally
enacted and as later
amended from time to
time[72]. But
the words do not speak directly to the source of the power to amend, and they do
not necessarily connote a lack of permanence
in the statutory right
created. Appearing in patents
legislation[73]
or copyright
legislation[74],
for example, the words are less suggestive of the inherent susceptibility of
statutory rights to subsequent legislative alteration
than are the same words
appearing in workers' compensation
legislation[75]
or in legislation creating and extending exclusive rights to explore for
petroleum in an area of the continental shelf which at the
time of creation and
extension of those rights was subject to competing claims of sovereign rights in
international
law[76].
- Even
where those words can be read as signifying that a characteristic of a statutory
right is that the right is susceptible to some
future legislative alteration,
they cannot necessarily be read as signifying that the right is susceptible to
any and all legislative
alteration, no matter how extreme the alteration and
irrespective of the purpose of the alteration. In Attorney-General (NT) v
Chaffey, reliance was placed on workers' compensation entitlements being
conferred "subject to" an identified part of workers' compensation
legislation
to hold that accrued rights "were of a nature which rendered them liable to
variation by a provision such as that made"
in a particular amendment the
purpose and effect of which was limited to restoring entitlements to levels
understood before a recent
court decision. Yet a note of caution was sounded
when it was added that "subsequent legislation might so remove the content of
rights to compensation, as to go beyond what was contemplated ... and amount to
abolition"[77].
- All
of this supports the view expressed by Gleeson CJ in Theophanous v The
Commonwealth that it is for the Parliament in the exercise of power
conferred by s 51(xxxvi) to decide the form and incidents of schemes for the
provision of allowances (including retirement allowances in the nature of
superannuation
or pension entitlements) to parliamentarians, that it is open to
the Parliament in the exercise of that power to create rights the
statutory
modification or extinguishment of which could amount to an acquisition of
property within the meaning of s 51(xxxi) and that "[w]hether or not s 51(xxxi)
has potential application to such modification or extinguishment may depend upon
the legislative context in which such modification
or extinguishment occurs".
His Honour rejected the proposition that "statutory superannuation or pension
benefits are inherently
defeasible and that, on that account alone, their
modification or withdrawal could never constitute an acquisition of
property"[78].
- That
view of the operation and interaction of ss 51(xxxvi) and 51(xxxi), although
tentatively expressed by Gleeson CJ in Theophanous, is one which I accept
without qualification. It provides the starting point for consideration of the
arguments in this special
case.
Special case
- The
plaintiffs are former parliamentarians, and are also former Ministers or former
parliamentary office holders or both. They retired
from the Parliament between
1990 and 2001. Their complaint is about alterations made by the Parliament
after their retirement to
entitlements to payments from the Consolidated Revenue
Fund for which they qualified at the time of their retirement under legislation
enacted under s 51(xxxvi).
- The
plaintiffs argue that an acquisition of their property otherwise than on just
terms has resulted from alterations made by the
Parliament in 2011 and 2012 to
their statutory rights to receive "retiring allowance". Two of the plaintiffs,
the Honourable John
Moore AO and the Honourable Barry Cohen AM, separately argue
that alterations made by the Parliament in 2002 and 2012 to their statutory
rights as holders of Life Gold Passes to travel within Australia for
non-commercial purposes at Commonwealth expense resulted in
acquisitions of
their property otherwise than on just terms.
- For
reasons which follow, I reject the argument that property has been acquired by
the alterations to the plaintiffs' statutory rights
to receive retiring
allowance but accept the arguments of Mr Moore and Mr Cohen that property has
been acquired by the alterations
to their statutory rights as holders of Life
Gold Passes.
Retiring allowance
- The
plaintiffs' rights to receive retiring allowance have at all relevant times been
conferred by the Parliamentary Contributory Superannuation Act 1948 (Cth)
("the Superannuation Act"). The alterations of rights of which they complain
were brought about by the Remuneration and Other Legislation Amendment Act
2011 (Cth) ("the 2011 Act") and the Members of Parliament (Life Gold
Pass) and Other Legislation Amendment Act 2012 (Cth) ("the 2012 Act").
Evaluation of their arguments that the 2011 Act and the 2012 Act resulted in an
acquisition of property requires an examination of precisely what their rights
had previously been and precisely how
those rights were altered.
- Uncluttering
the requisite analysis as much as possible, it is enough to look to the rights
which all of the plaintiffs had to receive
retiring allowance as former
parliamentarians immediately before the commencement of the 2011 Act, and to the
operation of the 2011 Act in relation to those rights. The plaintiffs also then
had rights to receive additional retiring allowance as former Ministers or
former holders of parliamentary office or both. The 2012 Act came to operate in
relation to those additional rights. The operation of the 2012 Act in relation
to additional retiring allowance is no different in principle, however, from the
operation of the 2011 Act in relation to retiring allowance. For that reason,
additional retiring allowance and the operation of the 2012 Act can both be put
to one side.
- The
content of the right of a former parliamentarian to receive retiring allowance
under the Superannuation Act immediately before the commencement of the 2011 Act
needs to be understood against the background of rights then conferred on
current parliamentarians through the combined operation
of the Remuneration
Tribunal Act 1973 (Cth) ("the Remuneration Tribunal Act"), the
Remuneration and Allowances Act 1990 (Cth) ("the Remuneration and
Allowances Act") and the Parliamentary Entitlements Act 1990 (Cth) ("the
Parliamentary Entitlements Act") as in force at that time.
- The
Remuneration and Allowances Act and the Parliamentary Entitlements Act were
enacted shortly after Brown v West, where this Court
observed[79]:
"Apart
from the possible operation of s 48, it may be that our Constitution provides
such a separation of powers as would preclude any exercise of the executive
power which takes the form of the discretionary
conferring of benefits having a
pecuniary value on individual members of the Parliament, not being mere
facilities for the functioning
of Parliament."
The three Acts together operated to ensure that payments from the
Consolidated Revenue Fund to or for the benefit of current parliamentarians
occurred with specific statutory authority.
- The
centrally relevant provision of the Remuneration Tribunal Act was s 7.
Section 7(1) provided that the Remuneration Tribunal "shall, from time to time
... inquire into, and determine, the allowances (including allowances
in
accordance with section 48 of the Constitution) to be paid out of the public
moneys of the Commonwealth to members of the Parliament by reason of their
membership of the Parliament".
The term "allowance" was defined in s 3(1) to
include but not be limited to "an annual allowance and a travelling allowance".
Section 7(4) made additional provision for the Tribunal to inquire into and
determine any matter which the Tribunal or the Minister considered
to be
significantly related to a matter into which the Tribunal inquired under s 7(1).
Under s 7(9)(b), notwithstanding the provisions of any other law, an allowance
to which a subsisting determination applied was to be paid in accordance
with
the determination out of the Consolidated Revenue Fund. Section 8(1) provided
for determinations under s 7(1) to be made at intervals of not more than one
year.
- The
Remuneration and Allowances Act provided, by force of s 6, for a current member
to be entitled to receive three principal forms of allowance referred to in
Sched 3. The first was an allowance
by way of salary referred to in cl 1 of
Sched 3. The second was an electorate allowance referred to in cl 2 of Sched 3.
The third
was another allowance of a kind to which reference was made in cl 3 of
Sched 3. Those other allowances relevantly included an overseas
study allowance
(entitling the member to financial assistance for overseas study travel while
remaining a member) as well as an entitlement
to receive on retirement a Life
Gold Pass.
- The
allowance by way of salary referred to in cl 1 of Sched 3 was specified in that
clause to be an annual allowance and to be equal
to either the minimum annual
rate of a salary payable to a Commonwealth employee holding a designated
classification under the Public Service Act 1999 (Cth) or a prescribed
percentage of a reference salary set by regulation. Immediately before the
commencement of the 2011 Act, the allowance by way of salary was in fact set by
regulation as a prescribed percentage of a public service reference salary
commonly
referred to as Reference Salary
A[80].
- By
force of s 3(2) of the Remuneration and Allowances Act, a determination made by
the Remuneration Tribunal which was inconsistent with a provision of that Act
operated in substitution for
that provision. The result in practice was that
the Remuneration Tribunal made annual determinations of electorate allowance and
other allowances, including overseas study allowance, which substituted for the
electorate and other allowances referred to in cll
2 and 3 of Sched 3.
- However,
s 3(2) of the Remuneration and Allowances Act created an exception for cl 1 of
Sched 3. Being a later and specific enactment, the exception also operated as
an exception to the
generality of s 7(9)(b) of the Remuneration Tribunal Act.
The result of that exception was that the Remuneration Tribunal had no power to
make a determination which had the effect of altering
the allowance by way of
salary for a member as then set by regulation as a prescribed percentage of
Reference Salary A.
- The
Parliamentary Entitlements Act supplemented the Remuneration and Allowances Act
by providing in s 5(1) for members to be entitled to additional benefits
determined by the Remuneration Tribunal under s 7 of the Remuneration Tribunal
Act. Those other benefits were confined by s 5(2) to benefits not in the nature
of remuneration.
- Against
that background, s 18(1) of the Superannuation Act as then in force provided
that "[s]ubject to this Act, a member who ceases to be entitled to a
parliamentary allowance shall be entitled
to benefits in accordance with this
section". Section 18(6) provided for the rate of retiring allowance payable to
a former member to be a specified percentage (varying with years of service)
of
"the rate of parliamentary allowance for the time being payable to a member".
Section 14A provided that the Commonwealth was to make payments in respect of
benefits provided for by the Act, and s 27 provided that those payments were to
be made out of the Consolidated Revenue Fund, which was appropriated
accordingly.
- Importantly,
the rate of retiring allowance payable to a former member in accordance with s
18(6) was affected by s 22T of the Superannuation Act. Section 22T was
expressed to apply in the event of a decrease in the rate of parliamentary
allowance payable to a current member. In that event,
the section operated to
require the retiring allowance payable to a former member to be calculated on
the basis that the rate of
parliamentary allowance for the time being payable to
a current member was the earlier, higher rate of parliamentary allowance.
The
section went on to require retiring allowance to continue to be calculated on
the basis of that earlier, higher rate until such
time as parliamentary
allowance payable to a current member increased to at least the earlier rate.
- Section
22T of the Superannuation Act in that way set a floor on the amount of retiring
allowance payable to a former member. The amount of retiring allowance could
always
go up. But the amount of retiring allowance could never go down, even if
the parliamentary allowance for the time being payable
to current members went
down.
- The
Superannuation Act defined "parliamentary allowance" in s 4(1) relevantly to
mean "an allowance by way of salary" under cl 1 of Sched 3 to the Remuneration
and Allowances
Act[81]. The
practical effect of that definition was to require the retiring allowance of a
former member under s 18(1) to be calculated
under s 18(6) as a specified
percentage of Reference Salary A. The entitlement of a current member to
electorate allowance or to
another allowance such as overseas study travel, or
to any other benefit not in the nature of remuneration, did not enter into the
calculation.
- The
2011 Act had as its main purpose amending the Remuneration and Allowances Act to
implement recommendations of a report of the Committee for the Review of
Parliamentary Entitlements in 2010 concerning the allowances
of current and
former
parliamentarians[82].
The principal recommendations of the Committee were relevantly to the effect
that the notion of a reference salary should be abandoned,
that the Remuneration
Tribunal should have power to determine a base salary for parliamentarians on
the basis of the Tribunal's assessment
of the value of their work as
parliamentarians, and that the Tribunal's power should extend to allowing the
Tribunal to dispense
with electorate allowance and the allowance for overseas
study travel and to fold the value of those existing allowances into its
determination of parliamentary base
salary[83]. A
subsidiary recommendation of the Committee was to the effect that preventative
measures should be taken to ensure that folding
the value of electorate
allowance and overseas study travel into the parliamentary base salary of
current members did not have the
unintended consequence of increasing the value
of the retiring allowance payable to former parliamentarians under the
Superannuation
Act[84].
- The
2011 Act implemented the principal recommendations of the Committee by the
simple expedient of repealing cl 1 of Sched 3 to the Remuneration and Allowances
Act and amending s 3(2) to delete the exception. Henceforth, a determination of
the Remuneration Tribunal was to operate in accordance with its terms in
spite
of any provision of the Remuneration and Allowances Act.
- The
2011 Act went on to implement the subsidiary recommendation of the Committee.
It did so in part by amending the definition of "parliamentary
allowance" in the
Superannuation Act to substitute for part of the existing definition a new
definition to the effect that "parliamentary allowance means ... parliamentary
base salary (within the meaning of the [Remuneration Tribunal Act]), less any
portion determined under subsection 7(1A) of [the Remuneration Tribunal
Act]"[85].
- Complementing
that amendment to the definition in the Superannuation Act, the 2011 Act made
two relevant amendments to the Remuneration Tribunal Act. One was to insert a
definition of "parliamentary base salary", which was to mean so much of the
allowances determined under s 7(1) as "represents the annual allowance payable
for the purposes of section 48 of the Constitution" and "is identified in the
determination as base salary". The other was to insert a new s 7(1A) to provide
that "[t]he Tribunal may determine that a portion of parliamentary base salary
is not parliamentary allowance for the
purposes of the [Superannuation
Act]".
- After
the 2011 Act, the amount of retiring allowance to which a former member was
entitled under s 18(1) of the Superannuation Act therefore remained that
calculated under s 18(6) as a specified percentage of parliamentary allowance as
defined in s 4(1). The calculation required by s 18(6) continued to be
constrained by s 22T, so that the amount of retiring allowance could always go
up if parliamentary allowance went up but could never go down if parliamentary
allowance went down.
- What
the 2011 Act changed was how parliamentary allowance was defined for the purpose
of the Superannuation Act in s 4(1) of that latter Act. Gone was the old
definition which indirectly tied parliamentary allowance to Reference Salary A.
In its place
was a new definition which tied parliamentary allowance for the
purpose of the Superannuation Act to such amount as the Remuneration Tribunal
might determine under s 7(1) of the Remuneration Tribunal Act to be the
parliamentary base salary payable to a current parliamentarian less such
proportion as the Tribunal might under s 7(1A) determine not to be parliamentary
allowance for the purposes of the Superannuation Act.
- Examination
of the practical outworking of that change is instructive. Immediately before
the commencement of the 2011 Act, the amount of parliamentary allowance, tied to
Reference Salary A, was $140,910. In the first half of 2012, the then current
value
of Reference Salary A was $146,380. The Remuneration Tribunal in March
2012[86]
determined parliamentary base salary to be $185,000 and determined the portion
of parliamentary base salary that was not parliamentary
allowance for the
purposes of the Superannuation Act to be $38,620, being the difference between
the then current value of Reference Salary A and the amount the Tribunal then
determined
to be parliamentary base salary. The amount of parliamentary
allowance for the purpose of the Superannuation Act was accordingly $146,380.
Around the middle of 2012, the value of Reference Salary A rose to $150,780 and
the Tribunal determined
parliamentary base salary and the portion that was not
parliamentary allowance for the purposes of the Superannuation Act in a way that
increased parliamentary allowance to
$150,780[87].
- In
2013[88], the
Remuneration Tribunal determined parliamentary base salary by increasing the
parliamentary base salary it had determined in
the middle of 2012 by a specified
percentage and determined the portion that was not parliamentary allowance for
the purposes of
the Superannuation Act in a way that increased parliamentary
allowance for the purposes of the Superannuation Act by the same percentage.
Subsequent determinations of the Tribunal left the amounts of parliamentary base
salary and of parliamentary
allowance for the purposes of the Superannuation Act
in 2014 and 2015 at the rates which had been determined in
2013[89].
- The
retiring allowance of former parliamentarians has in that way remained in
practice linked to Reference Salary A as it was in
2012, increased in 2013 by
the same percentage as parliamentary base salary then increased.
- Significantly,
the plaintiffs do not challenge the amendment to the definition of parliamentary
allowance in the Superannuation Act. They seek to benefit from it. They want
to take advantage of the inflating aspect of the new definition, which fastens
on a determination
of parliamentary base salary under s 7(1) of the
Remuneration Tribunal Act. At the same time, they deny the validity of the
deflating aspect of the new definition, which under s 7(1A) of the Remuneration
Tribunal Act excludes a portion of parliamentary base salary from parliamentary
allowance for the purpose of the Superannuation Act. Section 7(1A) of the
Remuneration Tribunal Act alone, they argue, is invalid as an acquisition of
their statutory property other than on just terms.
- According
to the plaintiffs, the Tribunal's determinations in 2012, 2013, 2014 and 2015
validly determined parliamentary base salary
in the exercise of the power
conferred by s 7(1) of the Remuneration Tribunal Act, but were invalid insofar
as they reduced parliamentary allowance in the purported exercise of the power
conferred by s 7(1A) of the Remuneration Tribunal Act for the purpose of the
Superannuation Act to a level below parliamentary base salary. For example, the
plaintiffs say that in 2012 the amount of parliamentary allowance validly
determined by the Tribunal for the purpose of the Superannuation Act was not
$146,380 but $185,000. They say that they were entitled to receive retiring
allowance calculated by reference to that higher
amount.
- What
is apparent is that the plaintiffs have not in fact received an amount of
retiring allowance as a result of the 2011 Act which is less than they received
before the 2011 Act. The amount of retiring allowance they have received since
the 2011 Act has increased.
- What
is also apparent is that the plaintiffs in their argument approbate and
reprobate. They seek to take the benefit of the new
definition of parliamentary
allowance in the Superannuation Act. Yet they seek to shear away a
qualification intrinsic to that new definition.
- The
fundamental problem with the plaintiffs' argument is that it is founded on too
large and imprecise a conception of just what
their statutory rights to retiring
allowance had been before the enactment of the 2011 Act. The plaintiffs did not
then have rights to be paid a percentage of whatever might be capable of being
regarded from time to time
as the base salary of a current parliamentarian.
Their rights under ss 18(1) and 18(6) of the Superannuation Act were confined to
rights to be paid a percentage of parliamentary allowance as then defined in
s 4(1). That definition admitted of the rate of parliamentary allowance
being varied up or down at any time by regulation made for the purpose
of cl 1
of Sched 3 to the Remuneration and Allowances Act. The plaintiffs at the same
time had the protection of s 22T of the Superannuation Act preventing the amount
they were entitled to from being reduced.
- The
2011 Act did not reduce the amount of retiring allowance payable to the
plaintiffs under ss 18(1) and 18(6) and did not remove the protection
of
s 22T. The 2011 Act in truth deprived them of nothing.
- Without
needing to form any view about the scope for inherent variation that might be
imported by the words "subject to this Act"
in s 18(1) of the Superannuation
Act, the change to the definition of parliamentary allowance for the purpose of
that Act effected by the 2011 Act did not result in an alteration of the
plaintiffs' statutory rights capable of being characterised as constituting a
taking of their
property. Conversely, the alteration did not result in a
financial benefit to the Commonwealth capable of being characterised as
constituting an acquisition of property.
- The
2011 Act did not meet the threshold condition of a law with respect to an
acquisition of property. For that reason, the 2011 Act did not engage
s 51(xxxi) of the Constitution.
Life Gold Passes
- The
special case to which the parties agreed contains an elaborate history which
traces the concept of a Life Gold Pass to gold medallions
issued by colonial
governments to colonial politicians entitling them to free travel on
government-owned railways. Quaintly interesting
as that history is, nothing for
present purposes is to be drawn from it in light of the doubt expressed in
Brown v West about the capacity of the Commonwealth executive to confer
discretionary benefits on parliamentarians and in light of the issuing
of Life
Gold Passes to Commonwealth parliamentarians having been put firmly and
exclusively on a statutory basis following the enactment
of the Remuneration
Tribunal Act.
- Mr
Cohen's and Mr Moore's rights as holders of Life Gold Passes are statutory
rights which accrued to them in the form of allowances
to which they became
entitled in their capacities as members of the Parliament and by reason of that
membership at the time of their
respective retirements in accordance with
determinations of the Remuneration Tribunal then subsisting under s 7(1) of the
Remuneration Tribunal Act. From the time of accrual of those rights, provisions
of the Acts Interpretation Act 1901 (Cth) combined to make them
enforceable on the basis that the determinations then subsisting continued to
subsist notwithstanding
subsequent amendment or
expiration[90].
Those provisions admitted of the possibility of a contrary legislative intention
appearing in the Remuneration Tribunal Act. But there was none.
- Section
7(9)(b) of the Remuneration Tribunal Act, it will be recalled, made an allowance
to which a subsisting determination applied payable in accordance with the
determination
out of the Consolidated Revenue Fund notwithstanding the
provisions of any other law.
- The
Tribunal itself had no power to alter rights attaching to a Life Gold Pass that
had been issued to a retiring member in accordance
with a subsisting
determination by varying or amending that determination. That was because the
power of the Tribunal under s 7(1) of the Remuneration Tribunal Act, to which
s 7(4) was ancillary, was relevantly limited to determining allowances to
be paid from time to time to current members of the Parliament
by reason of
their membership of the Parliament.
- The
Tribunal publicly stated in the course of explaining a determination which it
made in 1993 that "[t]he Tribunal has been given
legal advice that its
jurisdiction does not extend to retired Members and, therefore, that it cannot
make a determination to restrict
the use of the gold pass by retired
Members"[91].
That view, which I consider correct, was the view on which the Tribunal
consistently acted in practice.
- Therefore,
neither in principle nor in practice was there anything inherently variable
about the rights attaching to a Life Gold
Pass issued to a retiring member in
accordance with a subsisting determination of the Remuneration Tribunal.
- At
the time of Mr Cohen's retirement, on 19 February 1990, the subsisting
determination of the Remuneration Tribunal was relevantly
in terms that "[a]
senator or member, who, on retirement from the Parliament, has completed [a
specified qualifying period] shall
be issued with a Life Gold Pass entitling the
holder to travel at government expense for non-commercial purposes within
Australia
on scheduled commercial/commuter air services". The determination
went on to provide that "[a] Life Gold Pass holder shall be entitled
to travel
at government expense at the class of travel determined from time to time for a
sitting senator or member". At the time
of Mr Moore's retirement, on 5 February
2001, the subsisting determination of the Remuneration Tribunal made similar
provision, save
that it limited travel at government expense to a maximum of 25
return trips each year.
- The
first of the alterations to his accrued statutory right which Mr Cohen argues to
have involved an acquisition of his property
was made by the Members of
Parliament (Life Gold Pass) Act 2002 (Cth) ("the 2002 Act"). Section 11(2)
of the 2002 Act relevantly provided that "a former member who is the holder of a
Life Gold Pass ... is entitled to ... a maximum of 25 domestic return
trips per
year". The second of the alterations to his accrued statutory right which
Mr Cohen argues to have involved an acquisition
of his property was brought
about by Item 6 of Sched 1 to the 2012 Act, to which effect was given by s 3 of
the 2012 Act, amending s 11(2) of the 2002 Act by substituting "10" for "25".
The second alteration also affected the accrued right of Mr Moore.
- Demonstrating
legislative concern that there was a risk of contravention of the just terms
condition of s 51(xxxi), the 2002 Act and the 2012 Act each contained an
"historic shipwrecks"
clause[92],
imposing liability on the Commonwealth to pay compensation if its operation in
the absence of that provision for compensation would
result in an acquisition of
property otherwise than on just terms. That concern, in my opinion, was well
founded. The determinations
of the Remuneration Tribunal subsisting under s
7(1) of the Remuneration Tribunal Act gave rise to accrued statutory rights the
diminution of which by the 2002 Act and the 2012 Act, to obvious financial
benefit of the Commonwealth, constituted acquisitions of property within the
meaning of s 51(xxxi) of the Constitution.
- Viewed
from the perspective of anyone other than the holder or prospective holder of a
Life Gold Pass, the statutory rights in question
must be acknowledged to be a
particularly unattractive form of property. The Remuneration Tribunal commented
in 2011 that "[t]here
is possibly no single issue on which there is such a
disconnect between parliamentarians and their constituents as the Life Gold
Pass" and went on to note that the public view of actual usage of Life Gold
Passes seemed to be one of
derision[93].
- The
protection afforded by the just terms condition of s 51(xxxi) has nothing to do
with the popularity of the creation of the property that is protected. Much
less can the constitutional protection
yield to the popularity of its taking.
In the words of Gleeson
CJ[94]:
"The guarantee contained in s 51(xxxi) is there to protect private
property. It prevents expropriation of the property of individual citizens,
without adequate compensation,
even where such expropriation may be intended to
serve a wider public interest. A government may be satisfied that it can use
the
assets of some citizens better than they can; but if it wants to acquire
those assets in reliance upon the power given by s 51(xxxi) it must pay for
them, or in some other way provide just terms of acquisition."
Answers to questions
- Question
One of the questions reserved by the parties for the consideration of the Full
Court should be answered to the effect that
s 11(2) of the 2002 Act and s 3 of
the 2012 Act, insofar as it amended s 11(2) of the 2002 Act by giving effect to
Item 6 of Sched 1 to the 2012 Act, constituted acquisitions otherwise than on
just terms of property of Mr Cohen and Mr Moore comprised of their statutory
rights to
travel at government expense in accordance with determinations of the
Remuneration Tribunal subsisting at the time of their retirement
which entitled
them to be issued with Life Gold Passes. Question Two should be answered to the
effect that Mr Cohen and Mr Moore
are entitled to declarations reflecting the
answer to Question One. Question Three should be answered to the effect that
the question
of costs should be left to the discretion of a single
Justice.
- KEANE
J. Each of the plaintiffs is a former member of the House of Representatives
of the Commonwealth Parliament. Each of the
first, second and fourth plaintiffs
held one or more parliamentary offices during his time in Parliament. The third
and fourth plaintiffs
held positions as Ministers of State, and each of them
upon his retirement from Parliament received a Life Gold Pass.
- The
plaintiffs brought proceedings against the
Commonwealth[95]
challenging the possible reduction of their superannuation entitlements as
former members of Parliament, parliamentary office holders,
or Ministers of
State; and the third and fourth plaintiffs challenged the reduction of their
entitlements to the payment of travel
expenses as holders of a Life Gold
Pass.
- The
parties agreed upon the terms of a special case, which presented two issues for
determination by the Court. The first issue
arises because s 7(1A), (1B),
(1C) and (2A) of the Remuneration Tribunal Act 1973 (Cth) ("the
Remuneration Tribunal Act"), associated amendments to the Parliamentary
Contributory Superannuation Act 1948 (Cth) ("the Superannuation Act"), and
Determinations made by the Remuneration Tribunal ("the Tribunal") pursuant to
those provisions, may operate to reduce the
amount of payments which the
plaintiffs would otherwise receive under the Superannuation Act. The issue is
whether those provisions and decisions are invalid by reason of s 51(xxxi)
of the Constitution.
- The
second issue arises because s 11(2) of the Members of Parliament (Life
Gold Pass) Act 2002 (Cth) ("the Life Gold Pass Act"), both as enacted and as
amended by the Members of Parliament (Life Gold Pass) and Other Legislation
Amendment Act 2012 (Cth) ("the LGPA Act"), reduced the value of expense-paid
travel to which holders of a Life Gold Pass were entitled. The issue is
whether
this reduction was an acquisition of property within the meaning of
s 51(xxxi) of the Constitution so as to give rise to an entitlement to
compensation under s 32 of the Life Gold Pass Act.
- The
plaintiffs' submission was that the Parliament, which created their
entitlements, may not unmake them without paying compensation
for the
consequential reduction in their value. The plaintiffs argued that the
Parliament may lawfully reduce their entitlements
only if the Parliament
observes the requirement of s 51(xxxi) of the Constitution to provide "just
terms" for the reduction in the value to them of those entitlements.
- The
plaintiffs accepted that the Determinations by the Tribunal which they challenge
do not extinguish their property completely,
but argued that the Determinations
may operate to reduce the payments which otherwise would be made to them and, at
the same time,
provide a corresponding advantage to the Commonwealth. This was
said to be an acquisition of property within the meaning of
s 51(xxxi).
- The
Commonwealth submitted, among other things, that the entitlements of each of the
plaintiffs to receive payments of allowance
under the Superannuation Act or the
cost of travel privileges under the Life Gold Pass Act are not "property" within
the meaning of
s 51(xxxi)[96].
On behalf of the Commonwealth, it was argued that, although a statutory right
may in some cases be characterised as property for
the purposes of
s 51(xxxi), the rights to payment in question here could not be so
characterised. Rather, they were, by reason of
the terms in which they were
created, susceptible to alteration as the Parliament sees fit before payment is
made. For the reasons
that follow, this submission should be accepted.
- It
is necessary to begin a consideration of the issues by summarising the
provisions of the Constitution which authorise the statutory provisions which
regulate the plaintiffs' entitlements. I will then proceed to a discussion of
the
superannuation issue. The Life Gold Pass issue will then be
addressed.
The Constitution
- Section 48
of the Constitution provides:
"Until the Parliament otherwise
provides, each senator and each member of the House of Representatives shall
receive an allowance
of four hundred pounds a year, to be reckoned from the day
on which he takes his seat."
- Section 66
provides:
"There shall be payable to the Queen, out of the
Consolidated Revenue Fund of the Commonwealth, for the salaries of the Ministers
of State, an annual sum which, until the Parliament otherwise provides, shall
not exceed twelve thousand pounds a year."
- Section 51
relevantly provides:
"The Parliament shall, subject to this
Constitution, have power to make laws for the peace, order, and good government
of the Commonwealth with respect to:
...
(xxxi) the acquisition of property on just terms from any State or person for
any purpose in respect of which the Parliament has
power to make laws;
...
(xxxvi) matters in respect of which this Constitution makes provision until the
Parliament otherwise provides".
- Section 51(xxxvi),
supported by ss 48 and 66, provides the constitutional basis for
legislative provisions for the payment of allowances and salaries to serving and
retired parliamentarians
and Ministers of State from the public moneys of the
Commonwealth. While s 48 does not refer, in terms, to pensions or
superannuation payments for retired parliamentarians, it has been accepted that
s 48 empowers the Parliament to legislate for the making of such
payments[97].
No party sought to contend otherwise in the present case; and no separate issue
was raised in relation to salaries provided pursuant
to s 66 of the
Constitution.
- It
was not suggested by any party that ss 48, 66 and 51(xxxvi) of the
Constitution confer powers on the Parliament that are exercisable only to
increase the allowance or salary to the benefit of the parliamentarian
and at
the expense of the taxpayer. Indeed, the contrary view was accepted by Senior
Counsel for the plaintiffs. That concession
was rightly made. The entitlement
of serving parliamentarians to an irreducible level of remuneration is not
protected by provisions
such as s 3 and s 72(iii) of the Constitution,
which apply to the Governor-General and federal judges respectively. It has
long been understood that Parliament may exercise these
powers to reduce the
remuneration of parliamentarians. Thus, in relation to s 48 of the
Constitution, Quick and Garran
commented[98]:
"[N]either
the principle nor the amount of payment are permanent constitutional provisions.
Without an amendment of the Constitution, the Federal Parliament may at any time
either abolish payment of members or reduce or increase the allowance which each
member is
to receive, or alter the method of apportioning the allowance".
- On
this view, the remuneration payable to parliamentarians and Ministers of State
may be reduced at any time before payment is made
to them.
- Similarly,
Professor Harrison Moore said of s 48 of the
Constitution[99]:
"The
payment of members of the Commonwealth Parliament is under no constitutional
guarantee: the Parliament may abolish it or alter
the amount."
- Joseph Story
wrote that the conferral of power on the United States Congress by the United
States Constitution to determine the remuneration of its members, which includes
the power to vary that remuneration from time to time, was to ensure
that the
remuneration became neither too low nor too high. Story said that it was
"wisest" to leave the matter "to be decided by
Congress from time to time,
according to their own sense of justice and a large view of the national
resources."[100]
- Given
that the allowances paid to the plaintiffs after each of them left office are
sustained by the same constitutional powers as
supported their entitlement to
remuneration while in office, and given further that the Parliament may reduce
the remuneration payable
to parliamentarians and Ministers of State while they
are in office, one is inevitably led to ask what it is about the entitlements
in
issue here which rendered them invulnerable to statutory reduction pursuant to
ss 48, 66 and 51(xxxvi) of the Constitution as Parliament sees fit so that
they could be reduced only pursuant to s 51(xxxi). Unless the plaintiffs'
entitlements to payment from the public moneys of the Commonwealth in retirement
are different in character
from their entitlements while in office in that they
have been given the character of property, one would resolve the issues
presented
by the parties simply by applying the approach of Latham CJ in
Allpike v The
Commonwealth[101]:
"[S]uch right as there is is the creation of Commonwealth statute ... That
right may be altered by the authority which created
it."
- The
plaintiffs sought to demonstrate the proprietary character of their entitlements
in retirement by arguing that their entitlements,
both to superannuation
benefits and to travel expenses, can be seen to be choses in action which have
"vested" in them as rights
additional to the statutory payments to them from
time to time out of public moneys of the Commonwealth. The plaintiffs submitted
that, to the extent that s 7(1A), (1B), (1C) and (2A) of the Remuneration
Tribunal Act and the associated amendments in the Remuneration and Other
Legislation Amendment Act 2011 (Cth) ("the 2011 Amendment Act") and the LGPA
Act permit a Determination by the Tribunal which might reduce payments to them,
or on their behalf, by severing the
link with parliamentary allowance, these
provisions effect an acquisition of those choses in action otherwise than on
just terms.
- I
turn now to consider this argument in the particular context of the
superannuation issue.
The superannuation issue
- Prior
to 5 August 2011, s 18 of the Superannuation Act provided for the
payment of retiring allowance by reference to a fixed percentage of the
parliamentary allowance for the time being
payable to members of Parliament.
The parliamentary allowance was an annual allowance, called "salary", and was
determined under
cl 1 of Sched 3 to the Remuneration and Allowances
Act 1990 (Cth) ("the 1990 Allowances Act") and reg 5 of the
Remuneration and Allowances Regulations 2005 (Cth).
The
challenged amendments
- On
5 August 2011, the 2011 Amendment Act repealed cl 1 of Sched 3 to
the 1990 Allowances Act, and empowered the Tribunal to determine the
"parliamentary base salary" of members of Parliament. A definition of
"parliamentary
base salary" was inserted into s 3(1) of the Remuneration
Tribunal
Act[102].
The new provisions allowed a differentiation between the annual allowance
payable to serving parliamentarians, and the amount of
that allowance which is
relevant for the purposes of determining the quantum of retiring allowance
payable under the Superannuation Act. These amendments permitted the amount of
parliamentary allowance to serving members to be altered without automatically
altering
the quantum of retiring allowance payable to retired members.
- The
2011 Amendment Act added s 7(1A) to the Remuneration Tribunal
Act[103];
sub-ss (1B), (1C) and (2A) were added by the LGPA
Act[104].
They are in the following
terms[105]:
"(1A) The
Tribunal may determine that a portion of parliamentary base salary is not
parliamentary allowance for the purposes of the Parliamentary
Contributory Superannuation Act 1948.
(1B) The Tribunal may determine that a portion of additional Parliamentary
office holder salary is not allowance by way of salary for the
purposes of the Parliamentary Contributory Superannuation Act 1948.
(1C) Without limiting subsection (1B), the Tribunal may determine under
that subsection that, in the circumstances specified in the
determination, a
different portion (which may be a portion equal to 100%) of additional
Parliamentary office holder salary is not
allowance by way of salary
for the purposes of that Act in those circumstances.
...
(2A) The Tribunal may determine that a portion of a salary referred to in
subsection 6(1) is not salary for the purposes of the
Parliamentary Contributory Superannuation Act
1948."
- The
2011 Amendment Act also amended the definition of "parliamentary allowance" in
the Superannuation Act to allow the exclusion of a portion of parliamentary base
salary determined under the Remuneration Tribunal Act from the parliamentary
allowance for the purpose of calculating the retiring
allowance[106].
- The
result of the changes made by the 2011 Amendment Act was that the amount of the
retiring allowance payable to retired members of Parliament was no longer linked
by statutory provision
to the amount of the allowance payable to serving members
of Parliament; it became some potentially lesser amount depending upon
the
Determinations of the Tribunal. There was thus created the potential for the
reduction of retiring allowance independently of
any reduction in the
parliamentary allowance. It is this alteration of the basis on which retiring
allowance is to be paid to the
plaintiffs which is at the heart of the
superannuation issue.
- On
6 March 2012, the LGPA Act made amendments in relation to the additional
retiring allowance payable to former Ministers of State
and parliamentary office
holders in line with those made by the 2011 Amendment Act in relation to
parliamentarians[107].
Prior to those amendments, the additional retiring allowance was, by reason of
s 18(9) of the Superannuation Act, a fixed percentage of the salary payable
for the time being to a Minister of State or of the allowance payable for the
time being
to the parliamentary office holder.
The Tribunal's
Determinations
- Tribunal
Determinations made under the challenged provisions have not resulted in any
actual reduction of the amount of retiring
allowance received by the plaintiffs.
In this regard, immediately before the coming into force of the first
Determination following
the 2011 Amendment Act (Determination 2012/02), the
amount of "parliamentary allowance" for the purposes of the Superannuation Act
was $140,910. By Determination 2012/02, the parliamentary base salary was set
at $185,000, and the parliamentary allowance for the
purposes of the
Superannuation Act was set at $146,380 on the basis that the portion of the
parliamentary base salary that was determined not to be parliamentary allowance
for the purposes of that Act was $38,620.
- Under
the latest Determination in evidence before the Court,
Determination 2015/06, the amount of "parliamentary allowance" fixed
for
the purposes of the Superannuation Act is $154,400 and the portion of
parliamentary base salary that is not parliamentary allowance for those purposes
is $40,730.
The plaintiffs' arguments
- Recognising
that pension entitlements have been described in the authorities as
"gratuities", which, generally speaking, may be withdrawn
at any time by the
payer[108],
the plaintiffs submitted that payments under the Superannuation Act are not mere
gratuities[109];
rather, they are made pursuant to a right to a retiring allowance linked to the
parliamentary allowance which vested in them, either
under the terms of the
Superannuation Act, or having been earned by each plaintiff as the quid pro quo
either for the services rendered by each of them as a member of Parliament
or
for the contributions paid by them under the Superannuation Act while they were
members of Parliament.
- In
their written submissions, the plaintiffs argued that their right was a chose in
action which vested in each of them at the time
they entered Parliament. This
was said to be so, at least once each of them had satisfied the minimum
qualifying period of service
necessary to entitle him to receive a retiring
allowance. In oral argument, however, it was said that the chose in action
vested
in each of them when he ceased to be a member of Parliament.
- The
plaintiffs put at the forefront of their argument the following observations of
Gleeson CJ in Theophanous v The
Commonwealth[110]:
"If
Parliament legislated to modify or take away accrued entitlements simply for the
purpose of saving money, or because it was decided
as a matter of policy that
they were too generous, then the case may fall within s 51(xxxi). It is
unnecessary to decide that question.
As at present advised, I would not accept
that statutory superannuation or pension benefits are inherently defeasible and
that,
on that account alone, their modification or withdrawal could never
constitute an acquisition of property."
- It
should be said immediately that the other members of the Court did not support
his Honour's observations. Further, these observations
by Gleeson CJ were
tentatively expressed remarks unnecessary for his Honour's determination of the
case. It may also be said that
Gleeson CJ did not enter upon a close
consideration of the nature of the right created by s 18(1) of the
Superannuation Act, whether in the context of the other provisions of that Act,
or against the background of ss 48, 66 and 51(xxxvi) of the Constitution.
A consideration of these matters does not support a conclusion that the
Superannuation Act purported to vest in the plaintiffs a chose in action of the
kind for which they argued.
- Before
turning to a closer consideration of the terms of the statute on which the
plaintiffs relied, it may be said that it is difficult
to describe the creation
of a potential for a diminution in the plaintiffs' entitlements to
payment of retiring allowance as an acquisition of property apt to engage
s 51(xxxi) of the Constitution. Further, the notion of an entitlement to
be paid superannuation payments calculated on a particular basis, ie, by
reference to
the remuneration paid from time to time to serving
parliamentarians, is such an abstract conception that it is difficult to accept
that it can be said to be "property" in even a broad sense of the term.
- In
addition, an adjustment downwards of the amount of allowance or salary payable
to a serving parliamentarian or Minister of State
would not be described in
ordinary parlance as an acquisition of his or her property: it is naturally
described simply as a reduction
in remuneration. Similarly, as a matter of the
ordinary use of language, the alteration of the entitlement to payment of
retiring
allowance from the public moneys of the Commonwealth before payment is
made might be said to defeat an expectation of payment; but
it is distinctly
awkward to speak of that alteration as an acquisition of the property of the
(unpaid) former parliamentarian.
- Finally,
as noted above, the plaintiffs, in the course of their submissions, articulated
several possibilities as to how and when
this vesting might have occurred. The
variety of the possible circumstances of the "vesting" which the plaintiffs
propounded is
itself suggestive of a level of conceptual uncertainty
inconsistent with a meaningful idea of property.
- As
will now be seen, the plaintiffs' argument does not gain strength from an
examination of the language of the Superannuation Act or from a consideration of
the context in which it operates.
The statutory entitlement
- The
right asserted by the plaintiffs does not partake of the proprietary character
of a statutory right to compensation payments
conferred under federal compulsory
acquisition
schemes[111].
It does not exhibit the "familiar features of stable and valuable property
interests long recognised by the common
law."[112]
It has no existence apart from statute.
- In
Attorney-General (NT) v
Chaffey[113],
Gleeson CJ, Gummow, Hayne and Crennan JJ said that the term "property"
is used in various settings to describe a wide range of legal
and equitable
interests, and that:
"its use in s 51(xxxi) ... readily
accommodates concepts of the general law. Where the asserted 'property' has no
existence apart
from statute further analysis is imperative."
- When
that further analysis is undertaken in this case, it becomes apparent that the
right created by s 18(1) of the Superannuation Act is in no way analogous
to statutory rights such as copyright or patent
rights[114].
Such rights may be exploited by their owner for gain but they exist
independently of the receipts which exploitation generates.
The right created
by s 18(1) is simply to the payment of moneys from time to time from the
public funds of the Commonwealth. That right is of the same character
as the
right of serving parliamentarians to remuneration while in office.
- Serving
members of Parliament are entitled to an annual allowance by way of
remuneration. Holders of certain parliamentary offices
are entitled to an
additional allowance. Salaries are payable to Ministers of State. These
entitlements are conferred by the Parliamentary Allowances Act 1952
(Cth), the Remuneration Tribunal Act, the 1990 Allowances Act and the
Ministers of State Act 1952 (Cth).
- Section 7(1)
of the Remuneration Tribunal Act provides:
"The Tribunal shall, from
time to time as provided by this Part, inquire into, and determine, the
allowances (including allowances
in accordance with section 48 of the
Constitution) to be paid out of the public moneys of the Commonwealth to members
of the Parliament by reason of their membership of the Parliament
or by reason
of their holding particular offices, or performing particular functions, in, or
in relation to, the Parliament or either
House of the Parliament."
- Section 7(2)
similarly empowers the Tribunal to make Determinations in relation to the
allowances payable to Ministers of State out of the public
moneys of the
Commonwealth.
- Section 7(4)
provides that where the Tribunal inquires into a matter referred to in
sub-s (1), it may also inquire into and determine any matter
that is
considered by it to be significantly related to the first-mentioned matter.
- Section 7(9)(b)
provides that parliamentary allowances and salary determined by the Tribunal
shall "be paid in accordance with the determination
out of the Consolidated
Revenue Fund."
- Since
1 December 1948, the Superannuation Act has provided for the payment of
what is called retiring allowance to certain members of Parliament who have
ceased to be entitled
to a parliamentary allowance. Since 12 June 1978,
the Superannuation Act has also provided for additional amounts of retiring
allowance to certain members who had served as parliamentary office holders
or
Ministers of State.
- Section 13
of the Superannuation Act provides that a person who is entitled to a
parliamentary allowance shall, during his or her period of service, pay
contributions
to the Commonwealth at rates fixed by reference to the person's
period of service.
- Section 18(1),
which appears in Pt V of the Superannuation Act, the Part of the Act
concerned with the payment of benefits, provides:
"Subject to this
Act, a member who ceases to be entitled to a parliamentary allowance shall be
entitled to benefits in accordance
with this section."
- Sections 18(1A)
and 18(2) state that "the benefit" shall be "a retiring allowance during
his or her life-time" at a rate specified in accordance with the
scale provided
by s 18(6). Section 18(6), in turn, provides that "[t]he rate of
retiring allowance payable to a person under this section is such percentage of
the rate of
parliamentary allowance for the time being payable to a member as is
applicable in accordance with" a scale. The scale differentiates
the percentage
of parliamentary allowance to be paid as retiring allowance by reference to the
person's complete years of service.
- Section 18(9)
provides for the payment of additional retiring allowance to a person whose
period of service includes a period or periods of service
as a Minister of State
or parliamentary office holder.
- It
may be noted that s 18(1) does not use the language of vesting. It simply
provides that, "[s]ubject to this Act", upon a member's entitlement to a
parliamentary
allowance ceasing to be payable, a retiring allowance becomes
payable to the member. A member's entitlement to payments by way of
retiring
allowance comes into play because the member was, but is no longer, entitled to
payments by way of parliamentary allowance.
The entitlement in each case is to
receive payments from the public moneys of the Commonwealth. It is important to
recall that
it is common ground that the entitlement to payments by way of
parliamentary allowance while serving as a member could be reduced
by
legislative amendment without falling foul of s 51(xxxi) of the
Constitution. Just as there was no "vested" entitlement to an irreducible level
of payments from the Consolidated Revenue Fund by way of parliamentary
allowance
while a member was in office, so there was no such entitlement to payments by
way of a retiring allowance when the member
ceased to hold office. That
conclusion is not altered by s 18(2) or (6) of the Superannuation Act:
those provisions are concerned with the quantification of the payments to be
made, not with the qualifications for the vesting
of a right to a life pension
separate from an entitlement to continuing payments by way of retiring
allowance.
- The
plaintiffs argued that the opening words of s 18(1) of the Superannuation
Act, "Subject to this Act", do not disclose an intention that retiring allowance
is subject to a condition that it may be withdrawn or
reduced in value before
payment[115].
But, in the context of the Superannuation Act, the expressions "Subject to this
Act" and "in accordance with this section" in s 18(1) are fairly understood
as referring to the terms of the Superannuation Act as they may be from time to
time[116].
Of the provisions of the Superannuation Act to which s 18(1) is subject,
s 27 should be noted. It is an indication of the character of the
entitlement to payments by way of retiring allowance created by s 18(1).
Section 27 provides that "[p]ayments by the Commonwealth for the purposes
of this Act shall be made out of the Consolidated Revenue Fund, which
is
appropriated accordingly." The right to payments created by s 18(1), (2)
and (6) is, and was always, necessarily dependent on the ongoing authority of
the Parliament for the making of those
payments[117];
and the terms of that authority were dependent upon the terms of the Act from
time to time. Section 18(1) is, it may truly be said, expressed in terms
which indicate the possibility of subsequent
amendment[118].
- The
plaintiffs also argued that s 22T of the Superannuation Act supports their
construction of s 18 because it exhibits an intention to maintain the level
of superannuation payments. Because s 22T provides an elaborate and
apparently comprehensive statement of the extent of the protection of retiring
allowance against downward
adjustment, it is desirable to set it out at length.
Section 22T provides relevantly:
"(1) If:
(a) after 2 March 1996, the rate of any of the following payments (the
underlying payment) is decreased:
(i) parliamentary allowance payable to a member;
(ii) salary payable to a Minister of State in respect of an office;
(iii) allowance by way of salary payable to an office holder in respect of
that office; and
(b) at a time after the decrease, retiring allowance is payable to a person,
or would have been payable to a person if he or she
had not died, who was
receiving the underlying payment at a time before the decrease;
this section applies for the purposes of calculating the rate of the retiring
allowance after the decrease. The rate of the underlying
payment immediately
before the decrease is the preserved rate.
...
(2) In calculating the rate of the retiring allowance, the rate of the
underlying payment is to be taken to remain at the preserved
rate until the
actual rate of the payment increases to at least the preserved rate.
...
(4) If a decrease of a payment is expressed to have effect from a particular
time before the taking of the decision to decrease
the payment, this section
applies as if the payment had actually been decreased at that earlier time.
(5) To avoid doubt, if:
(a) a determination under subsection 7(1A) or (1B) of the Remuneration
Tribunal Act 1973; and
(b) a determination under subsection 7(1) of that Act;
take effect at the same time in relation to the same allowance referred to in
subparagraph (1)(a)(i) or (iii) of this section, the
net effect of the
determinations is taken into account, for the purposes of this section, as a
single alteration of the allowance.
(6) To avoid doubt, if:
(a) a determination is made under subsection 7(2A) of the Remuneration
Tribunal Act 1973; and
(b) the determination states that it relates to an alteration in salary
referred to in subparagraph (1)(a)(ii) of this section;
the net effect of the determination and the alteration is taken into account,
for the purposes of this section, as a single alteration
of the
salary."
- In
truth, the plaintiffs' argument gains no support from s 22T. This
provision expressly limits the effect that reductions in the
amount of
parliamentary allowance may have on the absolute amount of payments of retiring
allowance; but it is distinctly not concerned
to maintain the relativity for
which the plaintiffs contended. Indeed, it is readily understood as an
exhaustive statement of the
extent of the protection against legislative change
"built in" to the plaintiffs' entitlements under s 18(1) in that it
establishes
the boundary beyond which the plaintiffs' entitlements may not be
reduced. But that operation is predicated upon the inherent susceptibility
to
alteration from time to time of the right to payments of superannuation from the
public moneys of the Commonwealth.
An earned right?
- The
plaintiffs argued that the entitlement they claimed had vested in them was a
right earned by them by virtue of their service.
This contention is
misconceived. Parliamentarians and Ministers of State do not serve as employees
of the
Commonwealth[119].
- The
plaintiffs' right to payment of retiring allowance is not akin to the cause of
action which vests in a plaintiff under the general
law of the kind enjoyed by
an employee against his or her employer for damages for breach of the contract
of employment. Such a
cause of action has been recognised as a right in the
nature of property for the purposes of s 51(xxxi) because it vests by
operation
of the general law. Thus, in Georgiadis v Australian and Overseas
Telecommunications
Corporation[120],
Mason CJ, Deane and Gaudron JJ contrasted such a case with:
"a case involving the extinguishment or modification of a right
that has no existence apart from statute. ... [I]n the absence of
a recognized
legal relationship giving rise to some like right, a right which has no
existence apart from statute is one that, of
its nature, is susceptible of
modification or extinguishment. There is no acquisition of property involved in
the modification or
extinguishment of a right which has no basis in the general
law and which, of its nature, is susceptible to that course. A law which
effected the modification or extinguishment of a right of that kind would not
have the character of a law with respect to the acquisition
of property within
s 51(xxxi) of the
Constitution[121]."
- Their
Honours' description of a "right which has no basis in the general law and
which, of its nature, is susceptible" of modification
or extinguishment is
readily applicable to the right created by s 18(1) of the Superannuation
Act. That is because payments of retiring allowance are not made pursuant to
any contract or agreement between the member and the Commonwealth.
They are
not, and are not analogous to, contractual rights recognised under the general
law.
- The
plaintiffs were not employees of the Commonwealth who could earn an entitlement
to a life pension calculated on a basis specified
in a contract of employment:
they were constituent
units[122] of
the legislative and executive apparatus established for the government of the
Commonwealth. The service rendered by each of the
plaintiffs as a member of
Parliament was not a quid pro quo for the payment of retiring allowance, just as
such service was not,
in any legal sense, a quid pro quo for payment of
parliamentary allowance. The plaintiffs were duty-bound to serve as
parliamentarians
as a result of being elected by the people of the Commonwealth
to the Parliament. In R v
Boston[123],
Isaacs and Rich JJ adopted the statement by Dr Hearn in his
Government of
England[124]
that it is:
"a part of our ancient Constitution that every person
duly elected to serve in Parliament was bound so to serve. Service in
Parliament, as indeed the very term implies, was a duty cast in certain
circumstances upon every person not expressly disqualified. This duty no person
was permitted to decline or to evade."
(emphasis of Isaacs and Rich JJ)
- Given
these considerations, the plaintiffs' claim to have earned the right they assert
by their service must be rejected.
- The
plaintiffs also argued that they earned an entitlement to superannuation
payments linked to parliamentary allowance by the making
of the contributions
required by s 13 of the Superannuation Act. The circumstance that the
plaintiffs were obliged to make contributions under s 13 makes no
difference to the foregoing analysis.
- Section 13(1)
provides relevantly that "[a] person who is entitled to a parliamentary
allowance shall, during his or her period of service, pay
contributions to the
Commonwealth" at a percentage rate of annual monthly allowance depending on that
person's length of service.
The payment of contributions by each plaintiff in
conformity to the statutory command was not in the nature of a quid pro quo for
the entitlement to payment of retiring allowance. Indeed, s 13 does not
even appear in the same Part of the Superannuation Act as s 18(1).
- The
plaintiffs also sought to make something of the possible injustice which might
result from a reduction in retiring allowance
which would effectively forfeit
the contributions paid by retired parliamentarians. No such issue arises here
as there has been
no reduction in the actual amount of retiring allowance
payable to the plaintiffs: each plaintiff receives more by way of retiring
allowance than the amount of his contributions. In any event, the plaintiffs'
position in this regard is protected by s 22T of the Superannuation
Act.
- For
these reasons, the superannuation issue must be resolved against the
plaintiffs.
Life Gold Pass
- Prior
to 1976, executive arrangements provided for the issue to certain former members
of Parliament of travel passes providing travel
privileges. By Determination
1976/6 of the Tribunal, persons who satisfied certain eligibility criteria to a
Life Gold Pass were
allowed "at official expense" to travel on various modes of
transport within Australia for non-commercial purposes, including air,
rail and
coach. The pass was described by the Tribunal as "a special reward for long and
faithful service and for holding the highest
elected offices in Australia", and
was said to recognise "the residual demands involving time and travel placed on
such public figures
after they cease to hold
office."[125]
- Over
the period to 1 January 1994, the Tribunal made further Determinations
altering aspects of the original Determination; but at
all times, the holders of
a Life Gold Pass were permitted to travel for non-commercial purposes within
Australia on the prescribed
modes of transport at the expense of the
Commonwealth.
- By
Determination 1993/18, the Tribunal determined that an annual maximum of
25 domestic return trips should apply to members to whom
a Life Gold Pass
was issued on or after 1 January 1994.
- In
2002, Parliament enacted the Life Gold Pass Act, s 11(2) of which
restricted all holders of a Life Gold Pass, other than a former Prime Minister,
to a maximum of 25 domestic return trips
per year.
- Section 30(1)
of the Life Gold Pass Act provides that "[a] determination of the [Tribunal] has
no effect to the extent to which it is inconsistent with this Act." By virtue
of this provision, the extent to which the Tribunal might make an allowance for
travel expenses was always subject to the provisions
of the Life Gold Pass Act.
- Section 31
of the Life Gold Pass Act provides that "[t]he cost of travel under this Act is
to be paid out of the Consolidated Revenue Fund, which is appropriated for
the
purpose."
- Section 32
of the Life Gold Pass Act provides that if the Act's operation would result in
an acquisition of property other than on just terms, the acquisition is valid
and the Commonwealth is liable to pay reasonable compensation to the affected
holder.
- In
2012, the LGPA
Act[126]
amended the Life Gold Pass Act to reduce the maximum number of domestic return
trips provided by s 11(2) for holders of the Life Gold Pass from 25 to
10.
- The
plaintiffs accepted that, having regard to the presence of s 32 of the Life
Gold Pass Act and a similar provision in the LGPA
Act[127],
s 11(2) as enacted and as amended is not
invalid[128],
but submitted that this Court should declare that there has been an acquisition
of the property of the third and fourth plaintiffs
for which the Commonwealth is
liable to pay a reasonable amount of compensation.
- When
one asks what it is about the entitlements to payments of travel expenses which
rendered them invulnerable to statutory reduction
pursuant to ss 48, 66 and
51(xxxvi) of the Constitution as Parliament sees fit so that they may be reduced
only pursuant to s 51(xxxi), one may say immediately that the question is
not answered by s 32 of the Life Gold Pass Act. This provision operates
upon the assumption that the operation of the Act may effect an acquisition of
property; but is neutral
as to whether that assumption is correct.
- To
the extent that the entitlements attached to a Life Gold Pass began pursuant to
a direction by an agency of the executive government
for payments of travel
expenses to be made out of the Consolidated Revenue Fund without statutory
authority, the validity of such
payments was
questionable[129].
That question no longer arises because, under the statutory framework which was
put in place, payment of these expenses was regularised.
But the statutory
framework determined the content of the entitlement which it regularised. It
was, and remains, an aspect of that
statutory framework, and s 7(1) of the
Remuneration Tribunal Act in particular, that the Tribunal's Determinations were
necessarily liable to variation "from time to time" as the Tribunal might
consider
necessary[130]
and were subject to the requirement that those Determinations be consistent with
the Life Gold Pass Act.
- In
so far as the Tribunal determined that a member, on retirement from the
Parliament, shall be eligible for the issue of a Life
Gold Pass entitling the
member to travel "at official expense" for non-commercial
purposes[131],
it may be said that, unlike the retiring allowance under the Superannuation Act,
there was something akin to a vesting of an entitlement upon retirement by
reason of the satisfaction of qualifying conditions.
But under the express
terms of s 7(1) and (2) of the Remuneration Tribunal Act, the power
conferred on the Tribunal is a power to determine allowances to be paid out of
the public moneys of the Commonwealth to
members of Parliament and Ministers of
State. That power is expressly said to be exercisable "from time to time", and
was and is,
so far as the expenses associated with the Life Gold Pass are
concerned, subject to the provisions of the Life Gold Pass Act.
- Sections 7(1)
and 7(2) of the Remuneration Tribunal Act do not authorise the Tribunal to
create an entitlement to payment which may not be modified by a subsequent
Determination by the
Tribunal. That is because any entitlement created by the
Tribunal is an allowance and hence subject to the statutory power of
modification
by the Tribunal. The power so exercisable can be exercised to
reduce an allowance payable to serving parliamentarians. The reference
to "from
time to time" in s 7(1) of the Remuneration Tribunal Act is distinctly
inconsistent with the suggestion that the value of allowances created under
s 7 may not be diminished by a subsequent Determination by the Tribunal.
It is the Determination by the Tribunal from time to time which,
subject to
express provision by the Parliament, gives content to the authority in
s 7(9) to make payments out of the public moneys of the
Commonwealth[132].
And because s 30(1) of the Life Gold Pass Act has always required any
Determination of the Tribunal to be consistent with that Act, the content of any
such Determination could
never be more generous to the recipient than the Life
Gold Pass Act allows.
- It
must be borne steadily in mind that the entitlement to expense-paid travel
created by Determinations made by the Tribunal in respect
of the Life Gold Pass,
the cost of which is to be paid out of the Consolidated Revenue Fund, is an
allowance within the meaning of
s 7(1) of the Remuneration Tribunal Act.
If that were not so, the Tribunal would have no power at all to create the
entitlements which attach from time to time to the Life
Gold Pass by its
Determination. Further, so far as the Life Gold Pass is concerned, the
Tribunal's power is subject to the terms
of the Life Gold Pass Act.
- For
these reasons, no occasion arises to observe the requirements of s 51(xxxi)
of the Constitution.
- The
concern which prompted the inclusion of s 32 in the Life Gold Pass Act was
misplaced. The claim of each of the plaintiffs to the protection of
s 51(xxxi) against a reduction of the allowance payable
to him can be no
stronger than the claim of the estate of the deceased soldier in Allpike v
The
Commonwealth[133]
to the unpaid payment entitlements which accrued prior to his death on war
service.
Conclusion
- The
questions posed for the opinion of the Court were as
follows:
"Question One: Do any, and if so which, of the
following laws and Determinations of the Remuneration Tribunal constitute or
authorise an acquisition
of any, and if so what, property of the plaintiffs, or
any of them, otherwise than on just terms, within the meaning of s 51(xxxi)
of the Constitution:
- Remuneration
Tribunal Act 1973 (Cth), ss 7(1A), 7(1B), 7(1C) and 7(2A);
- Remuneration
and Other Legislation Amendment Act 2011 (Cth), s 3 (insofar as it made the
amendments or repeals provided for in Sched 2, items 1, 16A, 17A, 19,
20, 21(2));
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
s 3 (insofar as it made the amendments or repeals provided for in
Sched 2, items 1, 2, 3, 5, 6, 7, 8 and 9);
- Members
of Parliament (Life Gold Pass) Act 2002 (Cth), s 11(2) (as originally
enacted);
- Members
of Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
s 3 (insofar as it made the amendments or repeals provided for in
Sched 1, item 6);
f. Determination 2012/02, Pt 2 (cl 2.2);
g. Determination 2012/03, Pt 2 (cl 2.3), Pt 3
(cl 3.1);
- Determination
2012/15, Pt 1 (cl 1.3 and cl 1.4 (insofar as it relates to
cl 1.3));
- Determination
2013/13, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4
(cl 4.1);
- Determination
2014/10, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4
(cl 4.1);
- Determination
2015/06, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4
(cl 4.1)?
Question Two: If the answer to Question One is yes, to what, if any
relief are the plaintiffs, or any of them, entitled in the proceedings?
Question Three: Who should pay the costs of the
proceedings?"
- These
questions should be answered as follows:
Question One: No.
Question Two: Unnecessary to answer.
Question Three: The plaintiffs.
- NETTLE J.
This special case concerns benefits conferred by legislation on Commonwealth
Parliamentarians after their retirement. The
four plaintiffs are retired
members of the House of Representatives of the Commonwealth Parliament who were,
subsequent to their
retirement, receiving retirement benefits in the nature of
superannuation payments under the Parliamentary Contributory Superannuation
Act 1948 (Cth) ("the Superannuation Act"). The third and fourth plaintiffs
were, subsequent to their retirement, also receiving travel benefits in the
nature of travel
privileges pursuant to determinations of the Remuneration
Tribunal and then under the Members of Parliament (Life Gold Pass) Act
2002 (Cth).
- The
two questions for decision are whether s 7(1A), (1B), (1C) and (2A) of the
Remuneration Tribunal Act 1973 (Cth), and decisions made by the
Remuneration Tribunal pursuant to those provisions as to what should count as
parliamentary salary
for the purposes of the Superannuation Act ("the impugned
provisions and determinations"), resulted in an acquisition of property within
the meaning of s 51(xxxi) of the Constitution, and whether s 11(2) of
the Members of Parliament (Life Gold Pass) Act 2002 as enacted and as
relevantly amended by the Members of Parliament (Life Gold Pass) and Other
Legislation Amendment Act 2012 (Cth) resulted in an acquisition of property
within the meaning of s 51(xxxi). For the reasons which follow, both
questions should
be answered "no".
Parliamentary
superannuation
(i) Constitutional and statutory framework
- Section
48 of the Constitution provides that:
"Until the Parliament otherwise provides, each senator and each member of the
House of Representatives shall receive an allowance
of four hundred pounds a
year, to be reckoned from the day on which he takes his seat."
- Section
66 of the Constitution provides that:
"There shall be payable to the Queen, out of the Consolidated Revenue Fund of
the Commonwealth, for the salaries of the Ministers
of State, an annual sum
which, until the Parliament otherwise provides, shall not exceed twelve thousand
pounds a year."
- Section
51(xxxvi) of the Constitution provides that, subject to the Constitution, the
Parliament has power to make laws for the peace, order, and good government of
the Commonwealth with respect to matters in respect
of which the Constitution
makes provision until the Parliament otherwise provides. Together, ss 48,
66 and 51(xxxvi) provide the constitutional basis for the provision of
allowances and salaries to serving and retired Parliamentarians.
- Since
1948, the Parliamentary Retiring Allowances Act 1948 (Cth) (later renamed
the Parliamentary Contributory Superannuation Act
1948[134])
has provided for the payment of retiring allowances to retired members of
Parliament. The form and content of the retiring allowance
has changed over
time.
- As
first enacted, s 13 of the Superannuation Act provided that members of
Parliament were required to pay fixed contributions to the Parliamentary
Retiring Allowances Fund ("the
Fund"), being a fund established under s 9
for the purposes of paying pensions and other benefits under the Superannuation
Act. Section 18 provided for a weekly pension of £8 for life to be
paid from the Fund to retired members aged 45 or over who did not retire
"voluntarily"[135]
and who had a period of service of eight years or more, and retired members who
retired "voluntarily" after reaching 45 years of
age and who had a period of
service of 12 years or more. Section 18(2)(b) also provided for the
payment from the Fund to retired members who did not retire "voluntarily", and
had a period of service of less
than eight years, of a refund of contributions
and an additional amount, known as the "Commonwealth
supplement"[136],
calculated by reference to the quantum of contributions made, or deemed to have
been made, to the Fund by the member during his
or her period of service.
Section 18(3)(b) provided for a refund of contributions to those members who
retired voluntarily after a period of service of less than 12 years or
who
retired voluntarily prior to reaching 45 years of age.
- On
1 January 1952, the Superannuation Act was amended, relevantly, by
redefining "parliamentary allowance" as an allowance paid under s 3 of the
Parliamentary Allowances Act 1920 (Cth) or under s 4(1) or
s 5(1) of the Parliamentary Allowances Act 1952 (Cth) and amending
s 18 to provide for an additional weekly pension of £2 for persons
aged 65 or over who were entitled to a
pension[137].
- On
16 June 1955, the Superannuation Act was again amended, relevantly, to
increase further the rates of weekly
pension[138].
Then, on 1 March 1959, s 18 of the Superannuation Act was further
amended, relevantly, to reduce the pension age qualification threshold to 40
years, provide a gradated scale of weekly
pension payments for members retiring
at 40 to 45 years of age and provide for an additional payment of half of the
Commonwealth
supplement to retired members previously entitled only to a refund
of
contributions[139].
- On
1 November 1964, the Superannuation Act was amended by the Parliamentary
Retiring Allowances Act 1964 (Cth) with the relevant effect that current and
future members were thenceforth required to contribute to the Fund 11.5% of
the
"parliamentary allowance" that he or she was entitled to receive from time to
time[140].
At the same time, the rate of pension payable under s 18 was amended in
respect of both current and future members of Parliament
to a percentage, based
on the age of the retired member, of the "parliamentary allowance" to which the
retired member was entitled
immediately before
retirement[141].
That percentage ranged from a minimum of 30% for a retired member aged 40 to a
maximum of 50% for a retired member aged 45 or over.
On 8 November 1967,
those pensions were subsequently increased by ss 3 and 4 of the
Parliamentary Retiring Allowances (Increases) Act 1967 (Cth) and, on
1 October 1971, by ss 3-7 of the Parliamentary Retiring Allowances
(Increases) Act 1971 (Cth).
- On
8 June 1973, the Superannuation Act was amended by the Parliamentary and
Judicial Retiring Allowances Act 1973 (Cth). "Pension" was renamed
"retiring
allowance"[142]
and the assets of the Fund were vested in the Commonwealth, with future benefits
to be paid directly by the
Commonwealth[143].
Section 18 was amended by removing the minimum age requirement for members who
did not retire
"voluntarily"[144].
In the case of members who retired "voluntarily", the minimum age was restored
to age 45 or over but only in relation to future
members of
Parliament[145].
The rate of pension was amended to a percentage of the parliamentary allowance
for the time being
payable[146].
That percentage was calculated according to the number of complete years a
retired member had served and ranged from a minimum of
50% for retired members
with eight years' service to 75% for retired members with 20 or more years'
service[147].
- On
12 June 1978, the Parliamentary Contributory Superannuation Amendment
Act 1978 (Cth) made a number of substantive alterations to the scheme,
including that, for retired members who had retired before 12 June
1978, a
reference to the "parliamentary allowance" should be read as the rate of
parliamentary allowance determined for the time
being by the Remuneration
Tribunal[148];
the minimum 45 years or more age qualification for retiring allowance for
retired members who had retired voluntarily was
abolished[149];
s 18(6) was amended in relation to current and future members of Parliament
to refer to a percentage rate of parliamentary allowance
determined by the
Remuneration
Tribunal[150];
percentage rates were increased for retired members with nine or more years'
service[151];
and s 18(9) was introduced to provide an additional retiring allowance for
current and future members who were Ministers or other
office
holders[152].
- On
1 July 1980, provisions of the Parliamentary Contributory Superannuation
Amendment Act 1981 (Cth) came into force which had the effect that the rate
of the additional retiring allowance for members becoming entitled to a
retiring
allowance after 30 June 1980 was amended to a percentage of parliamentary
office holder salary for the time being
payable[153]
and, by virtue of transitional provisions, that any member retiring after
30 June 1980 should not suffer loss by reason of a change
of the basis of
calculation[154].
- Sections 4
and 5 of the Parliamentary Allowances Act 1952 were subsequently repealed
by Sched 1 to the Statute Law (Miscellaneous Provisions) Act (No 1)
1983 (Cth) and replaced with the effect that thenceforth there became payable to
members of Parliament such allowances as might be determined
by the Remuneration
Tribunal under s 7 of the Remuneration Tribunal Act 1973; and,
perforce of ss 2(2), 3(2) and 9(2) of the Parliamentary Contributory
Superannuation Amendment Act 1983 (Cth), "parliamentary allowance" in the
Superannuation Act was amended to include an allowance by way of salary under
s 4 of the Parliamentary Allowances Act 1952 (other than an
additional office holder allowance).
- On
20 June 1990, the Remuneration and Allowances Act 1990 (Cth) was
enacted with effect that from 1 July 1990 the allowance payable to senators
and members of the House of Representatives
provided for in s 48 of the
Constitution was to include an allowance by way of
"salary"[155].
- On
2 March 1996, s 22T was inserted into the Superannuation
Act[156] to
prevent decreases in the rate of parliamentary allowance from reducing the rate
of retiring allowance below a certain preserved
rate. It provided
that:
"(1) If:
(a) after 2 March 1996, the rate of any of the following payments (the
underlying payment) is decreased:
(i) parliamentary allowance payable to a member;
(ii) salary payable to a Minister of State in respect of an office;
(iii) allowance by way of salary payable to an office holder in respect of that
office; and
(b) at a time after the decrease, retiring allowance is payable to a person, or
would have been payable to a person if he or she
had not died, who was receiving
the underlying payment at a time before the
decrease;
this section applies for the purposes of calculating the rate of the retiring
allowance after the decrease. The rate of the underlying
payment immediately
before the decrease is the preserved rate.
...
(2) In calculating the rate of the retiring allowance, the rate of the
underlying payment is to be taken to remain at the preserved
rate until the
actual rate of the payment increases to at least the preserved rate.
(3) If the actual rate of the underlying payment is further decreased before
increasing to at least the preserved rate, this section
does not apply
separately in relation to that further decrease.
(4) If a decrease of a payment is expressed to have effect from a particular
time before the taking of the decision to decrease
the payment, this section
applies as if the payment had actually been decreased at that earlier
time."
- With
effect from 5 August 2011, the Remuneration and Other Legislation
Amendment Act 2011 (Cth) ("the 2011 Amendment Act") relevantly modified the
definition of "parliamentary allowance" so that such portion of parliamentary
base salary as the Remuneration
Tribunal should determine will not count as
parliamentary allowance for the purposes of the Superannuation
Act[157].
The purported effect of that was that the retiring allowance payable to the
plaintiffs ceased to be the previously specified fixed
percentage of
parliamentary salary and became a variable (by the Remuneration Tribunal) and
potentially lesser fraction of parliamentary
salary. And, by reason of the
subsequent determinations of the Remuneration Tribunal, it has become in fact a
lesser fraction of
parliamentary salary, albeit not lesser in amount.
- On
15 March 2012, Remuneration Tribunal Determination 2012/02 and Remuneration
Tribunal Determination 2012/03 came into operation.
By those determinations
there was excluded from the calculation of retiring allowance approximately 20%
of the parliamentary base
salary and precisely 20% of additional parliamentary
office holder salary.
(ii) The plaintiffs' contentions
- As
ultimately formulated, the plaintiffs' case was that, upon retirement or
completion of the relevant qualifying period ("the plaintiff's
vesting day"),
each plaintiff acquired a vested statutory right or chose in action as against
the Commonwealth to be paid a retiring
allowance in accordance with the
provisions of the Parliamentary Contributory Superannuation Scheme in
esse as at the plaintiff's vesting day, or as those terms might later be
amended favourably to the plaintiff; but that, if after the plaintiff's
vesting
day the provisions were amended in a fashion that was unfavourable to the
plaintiff, in the sense of extinguishing or qualitatively
diminishing the
plaintiff's right to be paid a retiring allowance, the amendment would
constitute an acquisition of property that
engaged s 51(xxxi) of the
Constitution.
- More
particularly, it was submitted that, immediately prior to 5 August 2011,
each plaintiff was seized of a vested right or chose
in action under the
Superannuation Act to be paid a retiring allowance comprised of the percentage
fixed by s 18(6) of the Superannuation Act of the parliamentary allowance
payable from time to time. The insertion by the 2011 Amendment Act of the
impugned provisions enabled the Remuneration Tribunal with effect from
5 August 2011 to determine that a portion of "parliamentary
base salary"
should not count as "parliamentary allowance" for the purposes of the
Superannuation Act. That meant that each plaintiff's retiring allowance ceased
to be the percentage fixed by s 18(6) of the Superannuation Act of the
parliamentary allowance payable from time to time and became instead a fixed
percentage of some potentially lesser proportion
of the parliamentary allowance
payable from time to time – a percentage of a proportion – with
consequent corresponding
reduction in the Commonwealth's correlative obligation
to pay the retiring allowance. And in the plaintiffs' submission, that amounted
to an acquisition of property within the meaning of s 51(xxxi) of the
Constitution.
(iii) The Commonwealth's contentions
- The
Commonwealth contended that the plaintiffs' entitlements to a retiring allowance
under the Superannuation Act were subject to legislative amendment from time to
time and, as such, were inherently defeasible. So much was apparent, it was
said,
from the constitutional context. By providing for the allowances to be
paid "until the Parliament otherwise provides", ss 48 and
66 bespoke a
constitutional intention that the Parliament should have unconstrained
flexibility in the design and amendment from
time to time of the allowances to
be paid[158].
According to the Commonwealth, that stands in stark contrast to s 72(iii)
of the Constitution, which expressly prohibits a reduction in the allowances
payable to a Justice of this Court.
- In
the Commonwealth's submission, the inherently changeable nature of the rights to
receive a retiring allowance under the Superannuation Act was also evident in
the text of s 18(1) of that Act, in its reference to the creation of
benefits "[s]ubject to this Act" and "in accordance with this section". The
expression
"[s]ubject to this Act" should be taken to mean "[subject to this]
Act as amended from time to
time"[159]
and was therefore indicative of an intention that benefits created under the
section should be alterable from time to time, as were
the words "in accordance
with this section".
- The
Commonwealth also invoked Crennan J's words in Wurridjal v The
Commonwealth[160]
in aid of the view that s 18 of the Superannuation Act is "part of a scheme
of statutory entitlements which will inevitably require modification over time"
to reflect changes in economic
circumstances. It was submitted that that was
exemplified by the reduction in allowances and salaries paid to Parliamentarians
during
the Great Depression and by the retrospective changes which were made to
the Superannuation Act in 1981 and 1986. It followed, it was submitted, that
the plaintiffs' rights to receive a retiring allowance under the Superannuation
Act could not be regarded as property within the meaning of s 51(xxxi).
- More
generally, the Commonwealth contended that the retiring allowance was entirely a
creature of statute: a gratuitous benefit
provided in the absence of any
contract between the Commonwealth and Parliamentarians which in relevant
respects was no different
from gratuitous social service benefits of the kind
considered in Health Insurance Commission v
Peverill[161].
The fact that the superannuation scheme was contributory made no difference to
that. Even if the retiring allowance were conceived
of as part of a
Parliamentarian's remuneration, it was, like other aspects of a
Parliamentarian's remuneration, subject to statutory
amendment from time to
time, and any such variation was not an acquisition of property.
- Alternatively,
it was contended that, if the plaintiffs' rights to a retiring allowance were
property and the changes effected by
the impugned provisions and determinations
would have otherwise amounted to an acquisition of property, s 22T of the
Superannuation Act had the effect that the amount payable following the changes
cannot be less than the amount payable before the changes and meant
that there
had been no acquisition of property.
(iv) Inherent
defeasibility
- For
reasons to be explained, it is sufficient to dispose of the plaintiffs' case to
acknowledge (as the Commonwealth contended) that
the continued existence and
content of each plaintiff's right to be paid a retiring allowance was, by the
statutory terms by which
it was created, subjected to the will from time to time
of the legislature which created it. Before going to that aspect of the
matter,
however, it is appropriate to say something of the remainder of the
Commonwealth's contentions.
(v) Constitutional context
- First,
with respect to the Commonwealth's arguments based on the constitutional context
of ss 48 and 51(xxxvi), the plaintiffs did
not dispute that the retiring
allowance is an allowance within the meaning of ss 48 and 51(xxxvi) of the
Constitution. It was not suggested that there was any other relevant head of
power under which it could be paid. Contrary to the Commonwealth's
submissions,
however, it is not the case that every allowance created pursuant to ss 48
and 51(xxxvi) of the Constitution is inherently defeasible. Whether or not an
allowance is inherently defeasible depends on the kind of allowance it is, and
more
particularly on the terms of the statute by which it is
created[162].
Granted, the power conferred by ss 48 and 51(xxxvi) of the Constitution is
one to legislate to provide for the allowances payable to Parliamentarians and
retired Parliamentarians from time to time; it
is up to the Parliament to choose
what it will provide for from time to time. It may choose to provide that upon
retirement a Parliamentarian
shall become entitled to such retiring allowances
as may be specified from time to time, or it may choose to provide that upon
retirement
a Parliamentarian shall become entitled to receive a specified
retiring allowance for the duration of his or her retirement.
- Of
course, a choice of the latter kind would not prevent the Parliament from later
amending or repealing the enactment to provide
for something different. The
Parliament could do so, subject to the Constitution, when and as often as it
chose. But if, upon its proper construction, an Act provided for the payment of
a specified allowance to
a retiring Parliamentarian for the duration of his or
her retirement, the right thereby created in favour of the retiring
Parliamentarian
and vested upon his or her retirement would qualify as
"property" within the meaning of s 51(xxxi) of the Constitution, with the
consequence that a subsequent extinguishment or adverse statutory alteration of
it could amount to an acquisition of property
within the meaning of
s 51(xxxi)[163].
(vi) Past increases in benefits
- Secondly,
in submissions on behalf of the Commonwealth a good deal was made of the fact
that, prior to the 2011 Amendment Act, there were a number of legislative
changes which increased the benefits payable under the scheme. It was submitted
that, just as
the Parliament had so increased the benefits payable under the
scheme, it must be recognised that the Parliament has the power to
reduce such
benefits when and if it so determines. Reference was also made to the fact that
in at least one instance a retrospective
reduction in parliamentary salary had
had the effect of reducing the quantum of retiring allowance
payable[164].
- Insofar
as that argument proceeded from previous beneficial increases in the amount of
retiring allowance it is unpersuasive. Certainly,
the Parliament has the power
by legislation to change what it has created by legislation. In this context,
that is the result of
the broad and flexible power conferred by s 51(xxxvi)
of the Constitution taken in conjunction with ss 48 and
66[165].
But, as has been observed, if by legislation the Parliament creates a right of
fixed proportions, such a right may amount to property
within the meaning of
s 51(xxxi) of the Constitution and thus, if by later amendment the
Parliament purports to extinguish or reduce the right so created, the
extinguishment or reduction
of it may amount to an acquisition of property
within the meaning of s 51(xxxi). It is in no way inconsistent with that
being so that the Parliament may by legislation augment such a right in a manner
which improves
its quality or value without engaging the operation of
s 51(xxxi).
- Insofar
as the argument proceeded from reductions in parliamentary salary which may have
had the effect of reducing the quantum of
retiring allowance, the argument
cannot be accepted in the broad terms in which it was stated. The Parliament
has power to increase
or reduce the amount of parliamentary allowance payable
from time to time. Hence, assuming for the sake of argument that the right
to a
retiring allowance created by s 18(1) of the Superannuation Act were a
right to a set proportion of parliamentary allowance from time to time, it would
follow that the quantum of retiring allowance
would be liable to increase or
reduce according to increases or reductions in parliamentary allowance from time
to time. But of
itself that does not necessarily imply that the right to
receive the set percentage of parliamentary allowance from time to time
would be
subject to change to a lesser percentage of parliamentary allowance from time to
time.
(vii) No existence apart from statute
- Thirdly,
it was contended on behalf of the Commonwealth that a right which has no
existence apart from statute is more readily to
be regarded as inherently
defeasible and susceptible to extinguishment or modification and hence that,
because the rights to a retiring
allowance created in favour of the plaintiffs
by s 18(1) of the Superannuation Act had no existence apart from statute, it
should be concluded that they were inherently defeasible and subject to
extinguishment or
modification from time to time.
- That
contention was overstated. Although McHugh J several times expressed firm
adherence to the proposition that a right which has
no existence apart from
statute is necessarily inherently
defeasible[166],
the idea has not found favour with other members of the
Court[167].
As was earlier noticed, it does not logically follow from the fact that a right
has no existence apart from statute that it is
inherently subject to
extinguishment or variation in the sense which denies it the status of property
within the meaning of s 51(xxxi).
As Gummow J observed in The
Commonwealth v WMC Resources
Ltd[168],
purely statutory rights such as copyright and patent rights are unquestionably
proprietary in nature. And, otherwise, as his Honour's
observations necessarily
imply, the determination of whether purely statutory rights are proprietary must
proceed from consideration
of the terms of the statute by which they are
created, the nature and function of the rights thus created and the benefits
thus
conferred[169].
(viii) Gratuitous statutory benefits
- Fourthly,
it was contended on behalf of the Commonwealth that the retiring allowance
created by s 18(2) of the Superannuation Act was not proprietary because it
was in the nature of a gratuitous statutory benefit – like a social
security pension or a Medicare
rebate or more generally a statutory entitlement
to receive payment from consolidated revenue which is not based on any
antecedent
proprietary right recognised by general law – and for that
reason it was inherently susceptible of
variation[170].
- That
contention was also too broadly stated. It asserts a conclusion about the
nature of the rights created by s 18(2) without identifying anything about
the terms of their creation or their benefits which requires that they be
characterised in that
fashion. It would be wrong to suppose that benefits
payable under statutory superannuation schemes are automatically to be equated
with gratuitous social security benefits like old age and invalid pensions or
Medicare rebates. In many cases of statutory superannuation
schemes, the
benefits are not gratuitous but paid pursuant to arrangements which require
members to make fixed contributions; and,
contrary to the Commonwealth's
submission, that is significant notwithstanding that the amount of contributions
paid or payable may
be relatively minimal compared to the amount of the
benefits.
- It
is true that benefits payable under some statutory superannuation schemes are
not based on any antecedent proprietary right recognised
by general law.
Usually, however, they have similar characteristics to benefits based on
proprietary rights which are recognised
by general law and, although that is not
the same
thing[171],
in the case of superannuation benefits it is important. In essential respects,
a significant number of statutory superannuation
schemes are contributory or
non-contributory defined benefit superannuation schemes of the kind that was
once commonplace in the
public sector and various sections of private industry.
The raison d'être of them is that a member can and should plan for
his or
her retirement and, in the case of contributory schemes, make contributions,
with assurance that upon retirement he or she
will receive a defined benefit for
the duration of his or her retirement. It would be antithetical to the nature
of such a scheme
if the defined benefit for which it provides were
extinguishable or reducible at any time during
retirement[172].
In that respect, the benefits payable under such a scheme stand in marked
contrast to gratuitous social security benefits, like
the old age pension, which
are undoubtedly subject to change from time to time.
(ix)
Assignability
- Fifthly,
the Commonwealth emphasised the fact that the plaintiffs' rights to receive a
retiring allowance were not assignable, as
an indicium of their not being
property. But "[a]ssignability is not in all circumstances an essential
characteristic of a right
of
property"[173].
It is a consequence, not a test, of
property[174]
and, in any event, "property" in s 51(xxxi) extends to "every species of
valuable right and interest including ... choses in
action"[175]
and "innominate and anomalous
interests"[176].
It would require no extension of "property" in s 51(xxxi) to comprehend a
vested statutory right to be paid retiring allowance for
the duration of
retirement in accordance with a fixed statutory
formula[177].
(x) No acquisition of property
- That
leaves the Commonwealth's contention – which should be accepted –
that the continued existence and content of each
plaintiff's right to be paid a
retiring allowance was by the statutory terms by which it was created subjected
to the will from time
to time of the legislature which created it.
- Authority
makes clear that where a claimant is seized of a right against the Commonwealth
that is proprietary in nature and is not
inherently defeasible, and the
Commonwealth extinguishes or relevantly diminishes that right so as to relieve
the Commonwealth of
a correlative obligation, the extinguishment or diminishment
may amount to an acquisition of property by the Commonwealth within
the meaning
of s 51(xxxi) constituted of the Commonwealth thereby receiving a benefit
precisely corresponding to the obligee's loss
of
property[178].
But equally, where a right is inherently defeasible, the extinguishment or
diminishment of the right will not result in any acquisition
of
property[179].
- The
Commonwealth argued in support of the conclusion that the plaintiffs' rights to
retiring allowance were inherently defeasible
that the words "[s]ubject to this
Act" and "in accordance with this section", which appear in s 18(1) of the
Superannuation Act, evinced a legislative intention that the retiring allowance
for which s 18(1) provides be subject to variation from time to time at the
will of the Parliament. The Solicitor-General of the Commonwealth referred
to
the decision of this Court in Attorney-General (NT) v
Chaffey[180]
and submitted that the Court had there accepted the proposition that the words
"[s]ubject to this Part", "in accordance with this
Part" and "such compensation
as is prescribed" rendered the workers' compensation rights in issue in that
case inherently variable.
- Evidently,
what was critical in Chaffey, however, was that the benefits were
referred to as such benefits as might be
prescribed[181].
That was a clear statutory intimation that the rights would be subject to
variation from time to time in accordance with the regulations.
It cannot be
assumed that the words "[s]ubject to this Part" or "in accordance with this
Part" would have been sufficient of themselves.
Although the expression
"subject to this Act" is ordinarily taken to mean subject to this Act as it may
be amended from time to
time[182],
where an Act creates a right in terms which are otherwise indicative of
immutability, a preface of "subject to this Act" may not
be sufficient to render
it subject to amendment from time to time. It will depend on the nature of the
provision and the right thereby
created, the context and ultimately the apparent
purpose of the legislation.
- Nevertheless,
in this case it is apparent that, in the context of s 18(1) of the
Superannuation Act, the words "[s]ubject to this Act" and "in accordance with
this section" are indicative of a legislative intention that the amounts
payable
in accordance with Pt V were from inception subject to the Act, and
particularly Pt V, as it may be amended from time to
time.
- The
long and varied legislative history of the scheme which was earlier referred to
and the many structural and quantitative legislative
changes made to the
benefits payable under the scheme up to the time of the 2011 amendments provide
a context indicative of a legislative
purpose of rendering all benefits subject
to legislative change from time to time. The provision for retirement benefits
equal to
a specified percentage of parliamentary allowance calculated in
accordance with cl 1 of Sched 3 to the Remuneration and Allowances
Act 1990 is properly to be seen as just the last of many different
formulations of retiring allowance which preceded the 2011 amendments.
- It
is also supportive of a legislative purpose of rendering retiring allowance
benefits subject to change that, up to the time of
the 2011 amendments, the
right to a retiring allowance provided for in s 18(1) was defined as a
percentage of parliamentary allowance
from time to time. As has been observed,
the percentage of parliamentary allowance to be paid as retiring allowance was
fixed by
s 18(6), and that provided the basis of the plaintiffs' submission
that that percentage was immutable unless changed favourably to
the plaintiffs.
But it was not suggested, and could not properly be, that it was not open to the
Parliament from time to time to
amend the quantum of parliamentary allowance, up
or down, or to change the elemental composition of parliamentary allowance,
favourably
or unfavourably to the plaintiffs. Nor was it disputed that it was
open to the Parliament to provide instead for some different
type of emolument,
such as, for example, an hourly fee for time spent in the House or electorate,
in no way corresponding to the
definition of "parliamentary allowance" prior to
the 2011 amendments. In either of those events, the amount of retiring
allowance
payable to the plaintiffs could be reduced to a fraction of what it is
now, or even perhaps to nothing, without engaging the operation
of
s 51(xxxi).
- Admittedly,
as counsel for the plaintiffs submitted, it is one thing for the plaintiffs to
face the risk of that occurring and quite
another to be subjected to what is in
effect a reduction of the proportion of parliamentary allowance on which
retiring allowance
is to be calculated. It is not unduly cynical to suppose
that there may be a difference between the chances of sitting members voting
to
reduce the annual allowance to which they are entitled and of voting to reduce
the percentage of annual allowance payable to retired
members by way of a
retiring allowance to which at least some sitting members may never become
entitled. But, even so, the fact
that retiring allowance is and always has been
subject to radical change (or even perhaps elimination), as a result of changes
to
annual allowance from time to time, bespeaks such a lack of legislative
intent to prevent detrimental alteration in the composition
and amount of
retiring allowance as to imply that the words "[s]ubject to this Act" and "in
accordance with this section" should
be read in the manner for which the
Commonwealth contended.
Life Gold Pass
- The
Life Gold Pass issue may be dealt with more briefly. Prior to 1976, former
members of the Commonwealth Parliament were issued
with travel passes that
provided certain travel privileges under an administrative scheme. Between 1976
and 1994, determinations
were made by the Remuneration Tribunal which permitted
the holders of a Life Gold Pass to travel at the expense of the Commonwealth
for
non-commercial purposes within Australia on scheduled commercial air, rail and
motor vehicle
services[183].
In 2002, the Members of Parliament (Life Gold Pass) Act 2002 was enacted
and all holders of a Life Gold Pass, other than a former Prime Minister, were
restricted to a maximum of 25 domestic
return trips per
year[184].
Subsequently, in 2012, s 11(2) was amended further to reduce that
entitlement to 10 domestic return trips per
year[185].
- As
noted, to begin with the Life Gold Pass was an executive entitlement. As such,
it was necessarily subject to change or elimination
from time to time.
According to the plaintiffs, that changed when the Life Gold Pass became in
effect an allowance determined by
the Remuneration Tribunal under s 7(1) or
(4) of the Remuneration Tribunal Act 1973. It was submitted that
thenceforth it became a statutory entitlement which was proprietary in nature
and hence could not be reduced
or eliminated otherwise than in accordance with s
51(xxxi) of the Constitution.
- The
difficulty with that, however, as French CJ, Kiefel and Bell JJ
observe[186],
is that the power conferred on the Remuneration Tribunal by s 7(1) is a
power to determine allowances from time to time. It necessarily follows that
the Life Gold Pass entitlement as determined by
the Remuneration Tribunal was
from its inception inherently subject to change from time to time. It follows
in turn, for the reasons
already given in relation to superannuation, that any
subsequent reduction in or elimination of Life Gold Pass benefits could not
amount to an acquisition of property.
Conclusion
- In
the result, the questions posed by the special case should be answered as
French CJ, Kiefel and Bell JJ propose.
- GORDON
J. Each plaintiff is a former member of the House of Representatives in the
Commonwealth Parliament. Each plaintiff receives
a "retiring allowance"
under the Parliamentary Contributory Superannuation Act 1948 (Cth)
("the Superannuation Act").
- Each
of the first, second and fourth plaintiffs was also an "office holder" and
receives "additional retiring allowance" for that
service. Each of the third
and fourth plaintiffs served as a Minister of State ("Minister") and receives
"additional retiring allowance"
for that service.
- The
plaintiffs and the first defendant, the Commonwealth, stated a special case and
questions of law arising for the opinion of the
Full Court under r 27.08.1
of the High Court Rules 2004 (Cth). The second defendant, the Remuneration
Tribunal, filed a submitting appearance.
- The
plaintiffs contended that s 7(1A), (1B), (1C) and (2A) of the
Remuneration Tribunal Act 1973 (Cth) ("the RT
Act")[187]
and determinations made by the Remuneration Tribunal pursuant to those
provisions[188]
("the RT Impugned Provisions and Determinations") are invalid because
they effect an acquisition of property otherwise than on just
terms, contrary to
s 51(xxxi) of the Constitution. Under the RT Impugned Provisions and
Determinations, retired parliamentarians became entitled to a prescribed
percentage of an
amount determined by the Remuneration Tribunal from time to
time by reference to the allowances and salaries paid to serving
parliamentarians,
instead of a prescribed percentage of whatever allowance or
salary serving parliamentarians received from time to time. The RT Impugned
Provisions and Determinations did not result in any reduction in the amount of
retiring allowance (including any additional retiring
allowance) received by the
plaintiffs.
- Further,
the third and fourth plaintiffs contended that s 11(2) of the Members of
Parliament (Life Gold Pass) Act 2002 (Cth) ("the 2002 LGP Act") both as
enacted and as amended by the Members of Parliament (Life Gold Pass) and
Other Legislation Amendment Act 2012
(Cth)[189]
("the 2012 LGP Act") ("the LGP Impugned Provisions") is invalid
because it effects an acquisition of property otherwise than on just
terms,
contrary to s 51(xxxi) of the Constitution. The LGP Impugned
Provisions reduced the number of free domestic return trips per year to which
holders of a Life Gold Pass ("LGP")
were entitled.
- For
the reasons that follow, none of the RT Impugned Provisions and Determinations
or the LGP Impugned Provisions constitutes or
authorises an acquisition of any
property of the plaintiffs within the meaning of s 51(xxxi) of the
Constitution.
- The
RT Impugned Provisions and Determinations concerned an entitlement to, and
payment of, a retiring allowance. The entitlement
is a "right" created by
statute that was and remains inherently liable to variation. Not only did the
"right" remain inherently
liable to variation; its content depended on the will,
from time to time, of the legislature that created the "right". It was, at
best, a right to receive whatever level of benefit was provided from time to
time. That "right" was not property protected from
acquisition by
s 51(xxxi) and there was no acquisition of property within the meaning of
s 51(xxxi). The history, purpose and object of the RT Impugned Provisions
and Determinations reveal that those provisions and determinations
are not
concerned with the acquisition of property; they were not intended to, and did
not, confer any benefit on the Commonwealth.
As will be seen, they were
directed to a different object and purpose.
- In
relation to the LGP Impugned Provisions, the position is no less stark. The
statutory provisions, including the administrative
and legislative history of
the LGP, demonstrate that the "right" to a LGP suffers from a "congenital
infirmity"[190].
The origin of the LGP was inherently unstable and its continued existence, scope
and incidents remain unstable. The LGP legislative
scheme was and remains
inherently liable to variation and the content of the "right" depends on the
will, from time to time, of the
legislature that created it. The "right" was
not property protected from acquisition by s 51(xxxi) and there was no
acquisition of property within the meaning of s 51(xxxi).
- These
reasons will describe each of the plaintiffs, set out the constitutional
framework, and then turn to consider the RT Impugned
Provisions and
Determinations and the LGP Impugned Provisions, each by reference to four
sub-headings – identification of the
asserted "property" or "right", the
position prior to the impugned provisions, the changes effected by the impugned
provisions and
whether the impugned provisions are invalid by reason of
s 51(xxxi) of the Constitution.
The plaintiffs
Mr Barry Thomas Cunningham
- The
first plaintiff, Mr Cunningham, was first elected to the House of
Representatives in October 1980. Mr Cunningham was re-elected
in 1983,
1984 and 1987. He was not re-elected in 1990. He was elected again in 1993 but
not re-elected in 1996. He held the parliamentary
office of Deputy Government
Whip from March 1983 to July 1987 and the parliamentary office of Government
Whip from July 1987 to February
1990.
- During
these periods, pursuant to s 5(4) and then s 5A(1) of the
Parliamentary Allowances Act 1952 (Cth) ("the 1952 Allowances
Act"), Mr Cunningham received a parliamentary allowance. At times, he also
received a parliamentary
office holder allowance. The rate of the parliamentary
office holder allowance was set by successive determinations of the Remuneration
Tribunal under s 7(1) of the RT Act. He paid, and was obliged to pay,
a proportion of those allowances pursuant to the Superannuation Act.
Dr Antony Hamilton Lamb OAM
- The
second plaintiff, Dr Lamb, was first elected to the House of Representatives in
December 1972. He was re-elected in 1974. He
was not re-elected in 1975.
Dr Lamb was elected again in 1984 and re-elected in 1987 but not re-elected
in 1990. He held the parliamentary
office of Chairman of the House of
Representatives Standing Committee on Environment and Conservation from
September 1975 to November
1975. He then held the parliamentary office of
Deputy Government Whip from July 1987 to February 1990.
- During
these periods, pursuant to s 5(4) and then s 5A(1) of the
1952 Allowances Act, Dr Lamb received a parliamentary allowance. At times,
he also received a parliamentary
office holder allowance. He paid, and was
obliged to pay, a proportion of those allowances pursuant to the
Superannuation Act.
The Honourable John Colinton Moore
AO
- The
third plaintiff, Mr Moore, was first elected to the House of Representatives in
December 1975. He was re-elected in 1977, 1980,
1983, 1984, 1987, 1990,
1993, 1996 and 1998. He resigned in February 2001. Mr Moore was a
Minister from November 1980 to April
1982 and from March 1996 to January 2001.
- During
these periods, Mr Moore received a parliamentary allowance. He was paid a
salary pursuant to s 66 of the Constitution as determined by the Executive
from time to time in relation to his service as a Minister. He paid, and was
obliged to pay, a proportion
of the allowance and the ministerial salary
pursuant to the Superannuation Act.
- Upon
his retirement from Parliament in February 2001, Mr Moore became eligible
for the issue of a LGP pursuant to Determination 1993/18
of the Remuneration
Tribunal.
The Honourable Barry Cohen AM
- The
fourth plaintiff, Mr Cohen, was first elected to the House of Representatives in
October 1969. He was re-elected in 1972, 1974,
1975, 1977, 1980, 1983,
1984 and 1987. He was not a candidate in the general election held in March
1990. Mr Cohen held the parliamentary
office of Chairman of the House of
Representatives Standing Committee on Road Safety from May 1973 to November 1975
and was a Minister
from March 1983 to July 1987.
- During
these periods, Mr Cohen received a parliamentary allowance. For part of
the period, he also received a parliamentary office
holder allowance. He
was paid a salary pursuant to s 66 of the Constitution as determined by the
Executive from time to time in relation to his service as a Minister.
He paid, and was obliged to pay, a proportion
of the allowances and the
ministerial salary pursuant to the Superannuation Act.
- Upon
his retirement from Parliament in February 1990, Mr Cohen became eligible
for the issue of a LGP pursuant to Determination 1976/6
of the Remuneration
Tribunal, as modified by Determinations 1977/9, 1980/8 and
1984/18.
The constitutional framework
- Examination
of the issues in this matter must begin with the relevant constitutional
provisions. Parliamentary allowances are addressed
in s 48 of the
Constitution, which has at all times provided:
"Until the Parliament otherwise provides, each senator and each member of
the House of Representatives shall receive an allowance of four hundred pounds a
year, to be reckoned
from the day on which he takes his seat." (emphasis
added)
- Salaries
of the Ministers are addressed in s 66 of the Constitution, which has at
all times provided:
"There shall be payable to the Queen, out of the Consolidated Revenue Fund of
the Commonwealth, for the salaries of the Ministers
of State, an annual sum
which, until the Parliament otherwise provides, shall not exceed twelve
thousand pounds a year." (emphasis added)
- Sections
48 and 66 must be read with s 51(xxxvi), which empowers the Parliament,
subject to the Constitution, to make laws for the peace, order, and good
government of the Commonwealth with respect to "matters in respect of which this
Constitution makes provision until the Parliament otherwise provides".
- For
the purposes of this matter, it is unnecessary to determine the scope of an
"allowance" within the meaning of s 48 of the Constitution. It is
sufficient to note that s 51(xxxvi), in light of s 48, empowers the
Parliament to legislate for the payment of allowances to parliamentarians,
including a retiring
allowance[191].
Similarly, s 51(xxxvi), in light of s 66, empowers the Parliament
to legislate for the payment of a "salary" to Ministers. Subject to the
Constitution, it is for the Parliament to decide the form and incidents of any
such scheme, including whether the scheme extends to a retiring
allowance and,
if so, the form and incidents of that retirement
scheme[192].
- Section
51(xxxi) of the Constitution empowers the Parliament, subject to the
Constitution, to make laws for the peace, order, and good government of the
Commonwealth with respect to "the acquisition of property on just
terms
from any State or person for any purpose in respect of which the Parliament has
power to make laws".
- As
is well established, s 51(xxxi) serves a double purpose. It provides
the Commonwealth with a legislative power to acquire property and, at the same
time, by the
condition placed upon the exercise of the power, it provides the
individual or the State affected by the acquisition with a protection
against
governmental interferences with proprietary rights without just
compensation[193].
It is an express power that is subject to a safeguard, restriction or
qualification[194].
- The
nature of the power under s 51(xxxi) has another consequence.
To ensure that the condition is effective, s 51(xxxi) "abstracts" or
"carves
out"[195] the
power to support a law for the compulsory acquisition of property from any other
legislative power. That proposition is not
absolute[196].
There are powers which, by their nature, have been held to be unaffected by the
guarantee of just
terms[197].
The Commonwealth submitted that the legislative powers granted by
ss 48 and 66, read with s 51(xxxvi), were powers of this kind. As
will become apparent, in light of the conclusions reached below, there is no
need to consider that
question in this
case[198].
- Given
the dual purpose of s 51(xxxi), both "property" and "acquisition" in that
provision are to be construed
liberally[199].
Section 51(xxxi) extends to protect against the acquisition, otherwise than
on just terms, of "every species of valuable right and
interest"[200].
Accordingly, legislation that modifies statutory rights may be characterised as
a law with respect to an "acquisition of property"
within the meaning of
s 51(xxxi), even if those rights have no existence apart from
statute[201].
- Whether
legislation of that kind falls within the scope of s 51(xxxi) depends on
the nature of the statutory rights. That analysis "must begin from an
understanding of the practical and legal operation
of the legislative provisions
that are in
issue"[202].
The
plaintiffs' challenge to the RT Impugned Provisions and Determinations
The "property" or "right"
- First,
it is necessary to identify the "property" in
issue[203].
What was said by the plaintiffs to be the relevant "property" protected from
acquisition by s 51(xxxi) did not clearly emerge until the hearing. The
plaintiffs submitted that they had a "right" to a retirement allowance that is a
certain
proportion of the parliamentary allowances or salary from time to time.
They accepted that the underlying parliamentary allowances
or salary were liable
to variation from time to time. However, in the plaintiffs' submission, neither
the proportion nor the underlying
reference point could be changed without
attracting the operation of s 51(xxxi). That is, as identified, the
"right" is a right to a retirement allowance calculated in accordance with a
particular formula.
- This
asserted right was said to be found in s 18 of the Superannuation Act,
prior to its amendment in August 2011 by the Remuneration and Other
Legislation Amendment Act 2011 (Cth) ("the 2011 Amendment Act").
Section 18 set out, subject to the Superannuation Act, the benefits to
which "a member who ceases to be entitled to a parliamentary allowance" was
entitled[204].
The plaintiffs challenged the validity of changes to the operation of that
provision caused by the RT Impugned Provisions and Determinations.
It is
necessary to identify the position prior to, and the nature and extent of
the changes effected by, the RT Impugned Provisions
and Determinations.
Position prior to the RT Impugned Provisions and
Determinations
- Immediately
prior to 5 August 2011, s 18(6) of the Superannuation Act provided for the
payment of a "retiring
allowance"[205]
by reference to a fixed percentage of the rate of parliamentary allowance for
the time being payable to members of Parliament. The
percentage varied
depending on the length of the member's service, with, in most circumstances, a
minimum qualifying period of eight
years[206].
Members who did not satisfy the minimum qualifying period were entitled, at a
minimum, to a refund of their
contributions[207].
- The
parliamentary allowance was not determined directly by the Remuneration Tribunal
but was an annual allowance, called "salary",
determined under cl 1 of
Sched 3 to the Remuneration and Allowances Act 1990 (Cth) ("the 1990
Allowances Act") and reg 5 of the Remuneration and Allowances Regulations
2005 (Cth). The salary was "Reference Salary A" (being the salary of a
specified position in the Public Service) less $5,470, which was
equal to
$140,910.
- Section
18(9) provided for "additional retiring allowance" for those who became entitled
to a retiring allowance after 30 June 1980
and had served as a Minister or
as a parliamentary office holder, determined by reference to a certain
percentage[208]
of the amount for the time being payable to a serving Minister or parliamentary
office holder.
Changes effected by the RT Impugned Provisions
and Determinations
- The
2011 Amendment Act effected the following key changes. It repealed
cl 1 of Sched 3 to the 1990 Allowances Act and conferred a power on
the Remuneration Tribunal to determine the "parliamentary base salary" of
members of Parliament. A definition
of "parliamentary base salary" was
inserted[209]
into s 3(1) of the RT Act:
"parliamentary base salary means so much of the allowances
determined under subsection 7(1) as:
(a) represents the annual allowance payable for the purposes of section 48 of
the Constitution; and
(b) is identified in the determination as base
salary."
- The
2011 Amendment Act also
inserted[210]
s 7(1A) into the RT Act, which empowered the Remuneration Tribunal to
determine that "a portion" of parliamentary base salary is not
parliamentary allowance
for the purposes of the Superannuation Act.
The definition of "parliamentary allowance" in s 4(1) of the
Superannuation Act was also
amended[211]
to exclude any portion of parliamentary base salary determined under
s 7(1A) of the RT Act.
- The
result of the amendments was that the retiring allowance payable to retired
members of Parliament was no longer a fixed percentage
of the annual allowance
payable to members of Parliament, but a fixed percentage of some potentially
lesser amount as fixed by the Remuneration Tribunal.
- On
6 March 2012, the 2012 LGP Act made similar amendments in relation to the
additional retiring allowance payable to former Ministers
and parliamentary
office holders. Prior to those amendments, the additional retiring
allowance was a fixed percentage of the salary
payable for the time being to a
Minister or of the allowance payable for the time being to the relevant
parliamentary office holder.
- On
15 March 2012, by Determination 2012/02, the Remuneration Tribunal
determined that "parliamentary base salary" should be set at
$185,000. The
annual salary payable to members of Parliament immediately prior to that time
was $140,910. The increase was as a
result of a work value assessment of
parliamentary remuneration. In that determination, the Remuneration Tribunal
also determined
that the portion of the parliamentary base salary that was not
parliamentary allowance for the purposes of the Superannuation Act was $38,620,
or in other words, that the parliamentary allowance for the purposes of the
Superannuation Act was $146,380. By Determination 2012/03,
the Remuneration Tribunal also determined that 20% of ministerial salary
and 20% of parliamentary
office holder allowance was not to be counted for the
purposes of the Superannuation Act.
- At
the date of the commencement of this proceeding, the relevant determination was
Determination 2015/06. Under that determination,
the parliamentary base
salary was $195,130 and the portion of base salary that was not parliamentary
allowance for the purposes of
the Superannuation Act was $40,730, so the
parliamentary allowance for the purposes of the Superannuation Act was $154,400.
Again, 20% of ministerial salary and parliamentary office holder allowance was
not to be counted for the purposes of
the Superannuation Act.
- As
seen above, immediately prior to the changes, retired members were not entitled
to any fixed amount but merely to a prescribed
percentage of whatever allowance
or salary serving members, parliamentary office holders and Ministers
(as applicable) received from
time to time. After the changes, retired
members were entitled to a prescribed percentage of an amount determined by the
Remuneration
Tribunal from time to time by reference to the allowances and
salaries paid to serving parliamentarians.
- The
RT Impugned Provisions and Determinations did not result in any reduction in the
amount of retiring allowance received by the
plaintiffs.
The RT Impugned Provisions and Determinations did not change the
method for determining entitlement to the retiring
allowance under s 18(6)
of the Superannuation Act, namely as a percentage of "parliamentary allowance"
based on the number of years served. The RT Impugned Provisions and
Determinations
did not change the method for determining entitlement to the
additional retiring allowance in respect of former parliamentary office
holders
or Ministers under s 18(9) and (10) of the Superannuation
Act.
The RT Impugned Provisions and Determinations invalid by
reason of s 51(xxxi)?
- As
seen earlier, subject to the Constitution, it is for the Parliament to decide
the form and incidents of any scheme for the payment of allowances to
parliamentarians, including
whether the scheme extends to retiring allowances
and, if so, the form and incidents of that retirement scheme.
- The
issue is: are the RT Impugned Provisions and Determinations, the scheme
currently chosen by Parliament, invalid by reason of
s 51(xxxi) of the
Constitution? The answer is "no".
- The
asserted "property" has no existence apart from statute. The "right" was and
remains inherently susceptible to
change[212]
and, in fact, has been substantially amended from time to time. Indeed, as
will be seen, the "right" was part of a bundle of rights
where the content of
the bundle, as well as the reference point for calculating the retiring
allowance, was variable and has been
regularly
varied[213].
That answer is explained by examining the nature of the "right", including the
history of the retiring allowance and the additional
retiring allowance in
s 18 of the Superannuation Act, as well as the legislative context in which
such allowances exist.
(a) History of s 18
- The
amendments effected by the 2011 Amendment Act and the 2012 LGP Act
were not the first time that the "right" conferred by s 18 was
changed.
(i) Retiring allowance for parliamentarians
- Since
1 December 1948, s 18 of the Superannuation
Act[214] has
provided for the payment of a retiring allowance to certain retired
parliamentarians. The form and content of the retiring allowance
payable
under the Superannuation Act has changed as it has been modified by Parliament
from time to time.
- When
enacted in 1948, s 18 fixed the rate of retiring allowance as a weekly
amount. The Parliamentary Retiring Allowances Act 1964 (Cth)
amended s 18 so that, from 1 November 1964 to 7 June 1973, the
rate of retiring allowance was fixed by reference to a
percentage of the
parliamentary allowance paid to the relevant retired parliamentarian immediately
before they became entitled to
a retiring allowance (with the percentage being
calculated on the basis of the age of the member at that
date)[215].
During that period, s 18 of the Superannuation Act relevantly
provided:
"(1) Subject to this Act, a member who ceases to be entitled to a parliamentary
allowance shall be entitled to benefits from the
Fund in accordance with this
section.
...
(6) The rate of pension payable to a person under this section is such
percentage of the rate of the parliamentary allowance to which
that person was
entitled immediately before he became entitled to pension as is ascertained in
accordance with the following scale:—
Age of member on becoming entitled to
pension.
|
Percentage of parliamentary allowance to be paid as
pension.
|
40 years
|
30 per centum
|
41 years
|
34 per centum
|
42 years
|
38 per centum
|
43 years
|
42 per centum
|
44 years
|
46 per centum
|
45 years or over
|
50 per centum
|
"
- This
was the position when, for example, Mr Cohen entered Parliament in 1969. At
that point, Mr Cohen's prospective entitlement
to a retiring allowance depended
upon what, if any, parliamentary allowance he was entitled to when he retired
and then, depending
on his age immediately before he retired, a prescribed
percentage of that parliamentary allowance (if any) by reference to that age.
"[P]arliamentary allowance" was relevantly defined in s 4 of the
Superannuation Act as the allowance paid to a member under s 3 of the
Parliamentary Allowances Act 1920 (Cth) (as amended) or under s 4(1)
or s 5(1) of the 1952 Allowances Act. That allowance was the current
parliamentary allowance
"otherwise provided" by Parliament under s 48 of
the Constitution, which was capable of going up or down, as had occurred in the
past[216].
- Then
the Parliamentary and Judicial Retiring Allowances Act 1973 (Cth) amended
s 18(6) of the Superannuation Act so that the rate of retiring allowance
was fixed by reference to a percentage of the parliamentary allowance for the
time being payable
to a serving parliamentarian (with the percentage calculated
on the basis of the retired member's period of parliamentary
service)[217].
For Mr Cohen, any prospective entitlement to a retiring allowance was
no longer linked to what he would be receiving on the day he retired but,
instead, was linked to what serving parliamentarians would receive from
time to time. Mr Cohen's prospective "right" not only was variable but had
been varied in a
manner which may or may not have been more beneficial than the
scheme that existed when he entered Parliament.
- In
1978, another important change occurred. Section 5(2) of the Parliamentary
Contributory Superannuation Amendment Act 1978 (Cth) provided that, for the
purpose of ascertaining the rate of retiring allowance payable under the
Superannuation Act to a person who was already retired, the reference in
s 18(6) of the Superannuation Act to the rate of the parliamentary
allowance for the time being payable under s 4(1) or s 5(1) of the
1952 Allowances Act was to be read as a reference to the rate of the
parliamentary allowance for the time being
determined by the Remuneration
Tribunal. In short, there was a new reference point – the rate
determined by the Remuneration
Tribunal. The rate was no longer linked to a
decision of Parliament but to a decision of the Remuneration Tribunal.
Accordingly,
at that point in time, Mr Cohen, at best, and subject to
satisfying length of service conditions, had a prospective "right" to receive
a
percentage of the parliamentary allowance set from time to time by the
Remuneration Tribunal.
- The
extent to which that "right" was then subject to variation is illustrated by
reference to the position under the Superannuation Act in February 1990, before
Mr Cohen and Dr Lamb left Parliament and Mr Cunningham left Parliament for
the first time. At that time,
the point of reference for calculating the
retiring allowance, namely the parliamentary allowance, was defined by reference
to an
allowance under s 3 of the Parliamentary Allowances Act
1920 (Cth) or under former s 4(1) or former s 5(1) of the
1952 Allowances Act or an allowance by way of salary under s 4 of the 1952
Allowances Act as determined by the Remuneration Tribunal. At that time, there
were five elements to any "right" to a retiring allowance:
s 18 of the
Superannuation Act, which provided for a retiring allowance to be a percentage
of the parliamentary allowance, such percentage determined by the period
of
service; the 1952 Allowances Act (for the definition of parliamentary
allowance); the RT Act (for the power of the Remuneration Tribunal to
make determinations); the determinations of the Remuneration Tribunal (for the
amount
of any parliamentary allowance); and, finally, whether Parliament had
overridden any determinations of the Remuneration Tribunal.
That bundle, its
elements, its form and the method for calculating the allowance had changed
substantially since Mr Cohen entered
Parliament in 1969. The bundle
was inherently subject to variation and had been varied.
- Three
further changes should be noted. First, with retrospective effect from 1 July
1990, the definition of "parliamentary allowance"
in the Superannuation Act was
"updated" with the result that, for the purpose of the retiring allowance
provisions, parliamentary allowance included an allowance
by way of salary under
cl 1 of Sched 3 to the 1990 Allowances
Act[218].
Clause 1 of Sched 3 to the 1990 Allowances Act set the parliamentary
allowance (called "salary" in the clause) by reference to a fixed amount with
effect from 1 July
1990[219],
followed by a stipulated increase of 6% on 1 January 1991 and then, from 1
July 1991, by reference to "SES Band 1 annual salary",
a salary paid to certain
members of the public service. In 1994, Parliament amended cl 1 of Sched 3
to the 1990 Allowances Act and linked the parliamentary allowance to "SES Band 2
annual
salary"[220].
Mr Cunningham retired on 1 March 1996, when he was not re-elected at an
election on 2 March 1996.
- Second,
with effect from 2 March 1996, s 22T was inserted into the Superannuation
Act to protect retired parliamentarians in receipt of a retiring allowance from
the effect that decreases (in real terms) in the rate
of parliamentary allowance
would have on the rate of the retiring
allowance[221].
- Finally,
in 1999, cl 1 of Sched 3 to the 1990 Allowances Act was amended to
provide two methods for setting parliamentary allowances – SES Band 2 or
by a regulation prescribing a "percentage
of [a] reference
salary"[222].
The Remuneration and Allowances Regulations 1999 (Cth) then provided that
for a defined period, the annual salary was 95% of the
reference salary for
Band A of the Principal Executive Office classification set out in
Remuneration Tribunal Determination 1999/15
and, thereafter, would be 100% of
that reference salary.
- This
was the position when Mr Moore retired in 2001. By that time, there
were four elements to any "right" to a retiring allowance:
s 18 of the
Superannuation Act, which provided for a retiring allowance to be a percentage
of the parliamentary allowance for the time being payable to a member,
such
percentage determined by the period of service; cl 1 of Sched 3 to the
1990 Allowances Act; the Remuneration and Allowances Regulations 1999;
and the determinations of the Remuneration Tribunal. That bundle, its elements,
its form and the method for calculating the allowance had changed substantially
since Mr Moore entered Parliament and changed substantially
even since the
other plaintiffs had retired. The bundle was inherently subject to
variation and had been varied.
- At
all times since 1 December 1948, a retiring allowance has not been payable to a
retired parliamentarian who has not completed
a minimum period of service. In
that circumstance, a retired parliamentarian is (and has always been) entitled
to a refund of their
contributions.
(ii) Additional retiring
allowance for parliamentary office holders
- Since
12 June 1978, s 18 of the Superannuation Act has provided for the payment
of additional amounts of retiring allowance (howsoever described from time to
time) to certain recipients
of retiring allowance who had served as
parliamentary office holders. The form and content of the retiring allowance
payable to
certain retired former parliamentary office holders pursuant to the
Superannuation Act has been modified by Parliament from time to time.
For example, from 12 June 1978, s 18 of that Act provided for the
payment of additional retiring allowance to certain former parliamentary office
holders calculated by
reference to a formula that took into account amounts of
parliamentary office holder allowance that they had received.
- Then,
pursuant to the Parliamentary Contributory Superannuation Amendment Act
1981 (Cth), relevantly commencing on 1 July 1980, s 18 of the
Superannuation Act was amended to provide for the payment of additional retiring
allowance to certain former parliamentary office holders calculated
by reference
to a percentage of the allowance for the time being payable to the holder of the
relevant office. As seen above, commencing
on 2 March
1996[223],
s 22T was inserted into the Superannuation Act to protect retired
parliamentarians in receipt of additional retiring allowance payable to certain
former parliamentary office holders
from the effect that decreases (in real
terms) in the rate of parliamentary office holder allowance would have on the
rate of additional
retiring allowance.
(iii) Ministerial additional
retiring allowance
- Since
12 June 1978, s 18 of the Superannuation Act has provided for the payment
of additional retiring allowance (howsoever described from time to time) to
certain recipients of retiring
allowance who had served as Ministers.
- The
form and content of the retiring allowance payable to certain retired Ministers
pursuant to the Superannuation Act has been modified by Parliament from time to
time. The modifications listed in respect of additional retiring allowance for
parliamentary
office holders also extended to ministerial additional retiring
allowance.
(b) Section 18 in context
- As
the history reveals, s 18 has undergone several substantial changes since
its enactment, including changes to the method of calculation of, and underlying
reference point for, retiring allowance.
- There
is, however, a further matter to consider. Section 18 of the Superannuation Act
operates as part of an integrated legislative framework. Immediately prior to
the RT Impugned Provisions and Determinations, amounts
payable under s 18
for the retiring allowance or the additional retiring allowance were all
calculated by reference to the allowances from time to time
payable to serving
parliamentarians, parliamentary office holders and Ministers. As will be seen,
those underlying allowances themselves
were subject to variation and have been
substantially varied. Further, there have been substantial reviews of that
integrated legislative
framework. It is to that context that these reasons
now turn.
(i) Allowances to serving parliamentarians and
parliamentary office holders
- Two
allowances to serving parliamentarians are presently relevant. First is the
allowance provided to serving members of Parliament
("the parliamentary
allowance"). Parliament has "otherwise provided", pursuant to ss 48 and
51(xxxvi), for the payment of the parliamentary
allowance since
1907[224].
Second is the allowance provided to certain parliamentary office holders
("the parliamentary office holder allowance"). Parliament
made provision
for the parliamentary office holder allowance at all times while the plaintiffs
were members of Parliament. The offices
to which the parliamentary office
holder allowance has attached have changed over time.
- The
form and content of each allowance "otherwise provided" by Parliament pursuant
to ss 48 and 51(xxxvi) have varied from time to
time. Indeed, some
allowances payable to parliamentarians have been subject to reductions,
including on a retrospective basis.
Moreover, as the Commonwealth submitted,
the formula or the method for establishing the allowances has changed repeatedly
and significantly
since the Parliament first "otherwise provided" and, more
particularly, while each of the plaintiffs was a member of the House of
Representatives. At any time, each member would have known that his or her
right to allowances, including future retiring allowance,
would depend upon
decisions about the method of calculation and, if appropriate to the selected
method, the exercise of a range of
discretions under a selected method.
- What
then were some of the changes to those underlying allowances for which
Parliament has "otherwise provided"?
- Prior
to 1952, legislation "otherwise providing" for the payment of allowances to
parliamentarians and certain parliamentary office
holders included the
Parliamentary Allowances Act 1907 (Cth), which increased the
allowance payable to parliamentarians not otherwise holding ministerial or
certain parliamentary
offices to 600 pounds per year from its starting point of
400 pounds per year under s 48 of the Constitution.
The Parliamentary Allowances Act 1920 (Cth) increased that allowance
to 1,000 pounds per year.
- Reductions
in the quantum of allowances payable to parliamentarians also occurred. For
example, the Financial Emergency Act 1931 (Cth) ("the 1931 Emergency
Act") reduced the yearly allowance payable to parliamentarians, including
allowances payable in respect
of certain parliamentary offices, by 20% (for
allowances up to 1,000 pounds), by 22.5% (for allowances between 1,000 and 2,000
pounds)
and by 25% (for allowances in excess of 2,000 pounds). Then, in
1932, the Financial Emergency Act 1932 (Cth) ("the 1932 Emergency
Act") amended the 1931 Emergency Act to reduce the yearly allowance payable
to parliamentarians,
including allowances payable in respect of certain
parliamentary offices, by 25%, 27.5% or 30%.
- From
January 1952 to December 1973, Parliament "otherwise provided" for the payment
of parliamentary allowances to parliamentarians
and certain parliamentary office
holders by s 5 of the 1952 Allowances Act. The amount payable under that
section was amended on
multiple occasions. For example, amendments in
1956[225],
1959[226],
1964[227],
1968[228] and
1973[229]
increased the parliamentary allowance payable to parliamentarians not otherwise
holding certain parliamentary offices.
- Then,
with the establishment of the Remuneration Tribunal from December
1973[230] and
continuing to June 1990, Parliament "otherwise provided" for the payment of the
parliamentary allowance and the parliamentary
office holder allowance pursuant
to the 1952 Allowances Act, the RT Act and determinations made by the
Remuneration Tribunal under the RT Act.
- Section
7(1) of the RT Act at all relevant times provided, in a materially identical
form, that:
"The Tribunal shall, from time to time as provided by this Part, inquire
into, and determine, the allowances (including allowances in accordance
with section 48 of the Constitution) to be paid out of the public moneys of
the Commonwealth to members of the Parliament by reason of their membership of
the Parliament
or by reason of their holding particular offices, or performing
particular functions, in, or in relation to, the Parliament or either
House of
the Parliament." (emphasis added)
- The
operation of the 1952 Allowances Act, the RT Act and determinations pursuant to
the RT Act, in relation to the provision of the parliamentary allowance and the
parliamentary office holder allowance, was modified from time
to time by
legislation[231].
Indeed, the Remuneration and Allowances Alteration Act 1986 (Cth)
retrospectively reduced parliamentary basic salary by around 10%.
- From
1974 to 1990, several determinations by the Remuneration Tribunal made under the
RT Act were disapproved by a single House of the Parliament under s 7(8) of
the RT Act. For example: 1974 Determinations (including salaries and
allowances payable to parliamentarians) were disapproved by the Senate
on 25
July 1974; August 1975 Determinations (including salaries and allowances payable
to parliamentarians) were disapproved by the
Senate on 9 September 1975;
Determination 1978/7 (office holder additional allowances and salaries) was
disapproved by the House
of Representatives on 17 August 1978; and
Determinations 1990/13 (basic salary) and 1990/15 (office holder additional
allowances
and salary) were disapproved by the House of Representatives on 31
May 1990.
- Then,
from 20 June 1990 to 5 February 2001 (the date Mr Moore ceased to be a
parliamentarian), Parliament "otherwise provided" for
the payment of
parliamentary allowances to parliamentarians and certain parliamentary office
holders pursuant to cl 1 of Sched 3
to the 1990 Allowances
Act[232],
s 7 of the RT Act and determinations made by the Remuneration Tribunal
under the RT Act. The operation of the 1990 Allowances Act,
the RT Act and determinations made pursuant to the RT Act
was modified by legislation from time to time, insofar as those Acts
pertained to the provision of parliamentary
allowances[233].
(ii)
Ministerial salaries
- Parliament
has "otherwise provided", pursuant to ss 66 and 51(xxxvi), for the
appropriation of monies for the payment of ministerial
salaries since at least
the enactment of the Ministers of State Act 1915 (Cth).
- The
annual sum appropriated for ministerial salaries was increased by the
Ministers of State Act 1917 (Cth). It was then reduced twice – by
the 1931 Emergency Act and the 1932 Emergency Act – before being
returned
to close to the 1915 position by the Ministers of State Act 1935
(Cth).
- Since
1952, the Parliament has "otherwise provided" for the annual appropriation for
ministerial salaries by the Ministers of State Act 1952 (Cth). That Act
has been amended on several
occasions[234].
The Remuneration Tribunal enquires into and reports on ministerial
salaries[235],
but does not determine the specific amounts payable to each Minister.
(iii) Review of parliamentary allowances, retiring allowances and
LGP
- The
appropriate nature and amount of parliamentary allowance and retiring allowance
and the appropriate nature and extent of the
provision of a LGP have been the
subject of repeated review and
consideration[236].
For present purposes, it is sufficient to refer to the Committee for the Review
of Parliamentary Entitlements, Review of Parliamentary Entitlements,
(2010) ("the Belcher Review").
- The
Belcher Review concluded that the then existing arrangements for parliamentary
entitlements were an extraordinarily complex mix
of primary legislation,
regulations, determinations, procedural rules, executive decisions, accepted
conventions and administrative
practices resulting in inconsistency, ambiguity,
duplication, overlap, redundancy and gaps in the framework. The Belcher
Review
recommended "a simplified, transparent and accountable framework that has
regard to contemporary community
standards"[237].
- The
Belcher Review recommended, amongst other things,
that:
(1) Parliament restore the power of the Remuneration Tribunal to determine
parliamentary base salary and remove the Parliament's
ability to disallow
determinations made by the Remuneration
Tribunal[238];
(2) all salary matters should be determined independently by the Remuneration
Tribunal following a work value assessment and that
the level of parliamentary
remuneration would be more transparent if all allowances providing a personal
benefit, such as electorate
allowance and overseas study travel entitlement,
were considered to be part of the
salary[239];
(3) the LGP scheme be abolished prospectively so that it would not be available
to those who entered Parliament at or after the next
federal election and, for
existing LGP holders, the LGP scheme be reduced from 25 to 10 free domestic
return trips per
year[240].
- If
these recommendations were adopted, then the Belcher Review further recommended
that the Parliament "take preventative measures
so that the folding in of
electorate allowance does not flow to the retirement benefits of members of the
parliamentary contributory
superannuation scheme" under the Superannuation
Act[241].
- The
changes to the calculation of retiring allowance caused by the
2011 Amendment Act and the 2012 LGP Act (namely, the RT Impugned
Provisions and Determinations) were the direct result of those recommendations
by the
Belcher
Review[242]
and subsequently the Remuneration
Tribunal[243].
No
infringement of s 51(xxxi)
- The
plaintiffs' challenge to the RT Impugned Provisions and Determinations concerned
the validity of legislative provisions (and
associated Remuneration Tribunal
determinations) that had the effect of calculating the rate of retiring
allowance by reference to
an amount potentially less than the amounts payable to
serving parliamentarians, parliamentary office holders and Ministers from
time
to time.
- But,
as the Commonwealth submitted, at the time when they became eligible to receive
a retiring allowance, each plaintiff could do
no more than say that his "right"
was governed by the Superannuation Act as amended from time to time.
The content of that "right" depended on the will, from time to time, of the
legislature that created
the
"right"[244].
The inherent variability of the "right" is reflected in the features of the
statutory scheme itself. Any entitlements under s 18 are, and always
have been, expressly "[s]ubject to this Act" and any entitlements are only "to
benefits in accordance with"
s 18[245].
Similarly, the underlying allowances are determined by the Remuneration
Tribunal "from time to time as provided by this
Part"[246].
- The method
for calculation of the retiring allowance, and each integer used by any method,
was not fixed in permanent form at any
particular date (whether at the date the
plaintiffs entered Parliament, at the date they retired from Parliament or at a
later date).
Accordingly, even if the bundle of "rights" held by the plaintiffs
(whether at the date they entered Parliament, at the date they
retired from
Parliament or at a later date) was property, as broadly
construed[247],
there was no property protected from acquisition by s 51(xxxi) and no
acquisition of property within the meaning of
s 51(xxxi)[248].
- That
view is reinforced by the
history[249],
purpose and object of the legislation that effected the alleged variation,
modification or extinguishment. On the recommendation
of the Belcher Review,
the RT Impugned Provisions were introduced as preventative measures "so
that any folding-in of allowances"
for sitting parliamentarians did "not flow to
the retirement benefits of members of
[Parliament]"[250].
- The
preventative measures were necessary because the Parliament adopted the Belcher
Review's
recommendation[251]
that the entitlements framework for serving parliamentarians be simplified.
In particular, the Belcher Review recommended that all
salary matters for
serving parliamentarians be determined independently by the Remuneration
Tribunal following a work value
assessment[252].
The Belcher Review considered that the level of parliamentary remuneration would
be more transparent (as was desirable) if allowances
providing a personal
benefit, such as an electorate allowance and overseas study travel entitlements,
were considered to be part
of a serving parliamentarian's
salary[253].
- So,
what mechanism did the preventative measures adopt? As seen earlier, and
as recommended by the Belcher
Review[254],
the RT Impugned Provisions permitted the Remuneration Tribunal to
provide that certain amounts not form part of the underlying reference
used to determine the superannuation benefits of members of the scheme.
- In
that legislative context, the source of the power to enact the RT Impugned
Provisions is the same as the RT Act. Parliament may legislate for the
remuneration of members of the Senate and the House of Representatives.
It is for the Parliament
to decide the amount, nature and incidents of that
remuneration. When Parliament decided in 2011 to adopt the recommendation
of
the Belcher Review that, to enhance
transparency[255],
the calculation of the salary of a parliamentarian would extend to include
allowances which, up to that point in time, had not constituted
the salary of a
parliamentarian, it is not surprising that this required changes to be made to
permit the excision of those allowances
in the calculation of a retiring
allowance. Why? The answer is that, because those allowances had not
previously been available
to a retired parliamentarian, there was no reason for
the retiring allowance to be calculated by reference to them and increased
accordingly. The RT Impugned Provisions simply prevented "any
folding-in" of those allowances to the retiring benefits of members.
- There
is no suggestion here that Parliament legislated to modify or take away any
accrued entitlements, or legislated to modify or
take away accrued entitlements
simply for the purpose of saving money, or because it was decided as a matter of
policy that entitlements
were too generous. Cases of that nature may or may not
fall within
s 51(xxxi)[256].
That is not this case.
- The
RT Impugned Provisions and Determinations have nothing to do with the
acquisition of property on just terms for a purpose in
respect of which the
Parliament has power to make laws. A law that qualifies retired
parliamentarians' rights to the retiring allowance
by permitting removal of
allowances that would otherwise not be relevant to, and would improperly
inflate, the retiring allowance
is within the power to grant remuneration,
a power given by s 51(xxxvi) read with s 48 or s 66 of the
Constitution. It would weaken the effect of the principle of probity and
good governance, which the RT Impugned Provisions were intended to provide,
to place the laws within s 51(xxxi).
- The RT
Impugned Provisions and Determinations do not effect an "acquisition".
The Commonwealth did not acquire anything or have
any interest conferred on
it by reason of any one of the RT Impugned Provisions and Determinations. The
RT Impugned Provisions and
Determinations cannot properly be characterised as a
law with respect to the acquisition of property for a purpose for which the
Parliament has power to make
laws[257].
The third and fourth plaintiffs' challenge to the LGP Impugned
Provisions
The "property" or "right"
- The
third and fourth plaintiffs, Mr Moore and Mr Cohen, submitted that they had
a "right" to a LGP that entitled them to a certain
number of free domestic
return trips per year.
- Prior
to the enactment of the 2002 LGP Act, Mr Moore was entitled to 25 free
domestic return trips per year with his
LGP[258],
while Mr Cohen was entitled to unlimited free domestic return trips per
year with his
LGP[259].
After the enactment of the 2002 LGP Act, Mr Moore and Mr Cohen were both
entitled to 25 free domestic return trips per year with their LGPs pursuant to
the table in s 11(2). The 2012 LGP Act reduced the entitlement to 10 free
domestic return trips per
year[260].
Certain provision was also made for spouses of LGP holders at each relevant
time[261].
- Mr
Moore and Mr Cohen challenged the validity of the LGP Impugned Provisions. They
alleged that the LGP Impugned Provisions resulted
in the acquisition of property
within the meaning of s 51(xxxi) because they reduced the number of free
domestic return trips to
which holders of the LGP were entitled per
year[262].
- Although
it is convenient to refer to the subject matter as the "life gold pass" or
"LGP", it is important not to allow those terms
to obscure the fact that the
"right" alleged to be the relevant item of property acquired otherwise than on
just terms is a "right",
the content of which has been often changed, to have
certain travel fares paid by the Commonwealth. In particular, what forms of
travel and what class of travel would be paid for, in what circumstances and how
often, has often changed. Accordingly, when Mr
Moore and Mr Cohen
spoke of the LGP Impugned Provisions effecting an acquisition of their "right"
to a LGP, the proposition had to
be understood as being that an entitlement to
have a certain number and kind of travel fares paid for by the Commonwealth had
been
acquired because the number of allowed fares had been reduced.
- It
is necessary to examine in more detail the position prior to, and then the
nature and extent of the changes effected by, the LGP
Impugned
Provisions.
Position prior to the LGP Impugned
Provisions
- The
LGP has had three phases in its life: as an administrative scheme from
pre-Federation until 1976, as an allowance by determinations
of the Remuneration
Tribunal under the RT Act from 1976 to 2002 and then under its own legislative
scheme – the 2002 LGP Act.
- From
pre-Federation (in respect of parliamentarians in the separate colonies) until
1976, the scheme was administrative and depended
upon the exercise of executive
power. The validity of that scheme is not in issue but is at least open to
doubt[263].
The scheme for the issue of a LGP to certain serving (and, later, retired)
parliamentarians has its origins in executive arrangements
between the
Commonwealth and State governments. Those arrangements involved the issue from
time to time of passes, in the form of
a gold plated medallion, to various
persons, and the associated provision of travel privileges to those persons.
The persons to
whom such passes were issued, and the associated travel
entitlements of persons who held such passes, developed over time and reflected
the views current at various points in time.
- These
passes were first issued to retired Commonwealth parliamentarians in 1923, in
the form of a gold medallion, called a Gold Life
Pass by the issuing authority.
From 1955, the term "Life Gold Pass" was frequently used to describe the
pass. These passes were
also described officially from time to time by other
descriptions including "life railway passes", "life passes", "all lines
life
passes" and "gold life rail passes".
- From
1976 to 1994, the scheme was the subject of determinations of the Remuneration
Tribunal under the RT Act. By a notice in writing dated 4 March 1976, pursuant
to s 7(4)(b) of the RT Act, the Minister for Administrative Services
requested the Remuneration Tribunal to enquire into and determine certain
matters, including
"Life Gold Pass". By its Determination 1976/6,
the Remuneration Tribunal determined the criteria applicable to the issue
and use
of a
LGP[264]. By
the same Determination, the Remuneration Tribunal suspended the travel
privileges associated with the LGPs held by sitting members
of
Parliament[265].
That Determination was not disapproved by either House of Parliament.
- From
the coming into effect of Determination 1976/6 until 1 January 1994, the
Remuneration Tribunal issued Determinations that modified
the operation of the
LGP scheme from time to
time[266].
The effect of those Determinations made by the Remuneration Tribunal was to
permit the holders of a LGP to travel at official expense
for non-commercial
purposes within Australia on scheduled commercial/commuter air services,
mainline rail services and other government
services, or by motor coach or other
vehicles operating as regular carriers.
- In
1993, the Remuneration Tribunal reviewed the LGP and imposed a cap of 25 free
domestic return trips per year on members (who had
not been Prime Minister) to
whom a LGP was issued on or after 1 January
1994[267].
Changes effected by the LGP Impugned Provisions
- With
relevant effect from the commencement of Pt 3 of the 2002 LGP Act on 30
December 2002, Item 1 of the table in s 11(2) of the 2002 LGP Act provided
that a former parliamentarian, other than a former Prime Minister, who held a
LGP was entitled to a maximum of 25 free domestic
return trips per year.
Mr Cohen claimed that the 2002 LGP Act resulted in an acquisition of his
property otherwise than on just terms. The 2002 LGP Act did not affect
Mr Moore.
- Section
30(2) of the 2002 LGP Act provided that a determination of the Remuneration
Tribunal was to make provision for the circumstances in which a member will, on
retirement from Parliament, qualify for a LGP. The determination may
provide for different circumstances for different kinds of
members[268].
However, s 30(1) of the 2002 LGP Act provided that a determination of
the Remuneration Tribunal had no effect to the extent to which it was
inconsistent with the 2002 LGP Act. That provision is important. It will
be necessary to return to consider it.
- The
2012 LGP Act then amended Item 1 of the table in s 11(2) of the
2002 LGP Act to provide that a former member who held a LGP, other than a
former Prime Minister, was entitled to a maximum of 10 free domestic
return
trips per
year[269].
Both Mr Moore and Mr Cohen claimed that the 2012 LGP Act resulted in an
acquisition of their property otherwise than on just terms.
- It
was not in issue in this matter that the 2002 LGP Act and the
2012 LGP Act, insofar as they addressed the LGP, were enacted by
Parliament under s 48 read with s 51(xxxvi) of the
Constitution[270].
It is therefore not necessary to examine whether the LGP is an allowance of the
kind referred to in s 48 of the Constitution.
The LGP
Impugned Provisions invalid by reason of s 51(xxxi)?
- The
statutory provisions for a LGP, together with their administrative and recent
legislative history, reveal that the "right" to
a LGP suffers from a "congenital
infirmity"[271].
Not only was the administrative origin of the LGP inherently
unstable[272],
but its continued existence, scope and incidents were, and remain, unstable.
- The
fragility and inherent variability of the prospective "right" to a LGP for
serving members is made evident by s 7(1) of the RT Act providing that the
Remuneration Tribunal shall "from time to time ... determine, the
allowances ... to be paid ... to members of the Parliament" (emphasis added).
The statutory right that serving
members had to the benefits provided by the LGP
could be and was varied from time to time. At its highest, the prospective
"right"
to a LGP for serving members was subject to what Parliament "otherwise
provided" and what the Remuneration Tribunal determined from
time to
time[273].
- For
example, as noted above, in 1993, the Remuneration Tribunal did limit the amount
of trips per year for prospective LGP holders.
A relevant Remuneration Tribunal
determination also may provide for the circumstances in which a member will, on
retirement from
Parliament, qualify for a LGP. As seen earlier, the
determination may provide for different circumstances for different kinds of
members[274].
And the Remuneration Tribunal did make changes. It had previously amended
the class of travel available to existing LGP
holders[275].
That power of amendment was specifically retained by s 26 of the
2002 LGP Act.
- Mr
Cohen and Mr Moore are not serving members but retired parliamentarians. The
"right" which they had to a LGP, at retirement,
still depended upon the
statutory scheme, if any, as it stood from time to time. The "right" that
a retired parliamentarian had
to a LGP was and remains as fragile and inherently
variable as the right of a serving parliamentarian. The content of the
"right",
at least from 1976, depended on the will, from time to time, of the
legislature that created the
"right"[276].
Not only its origin, but its continued existence, was and remains unstable.
- The
2002 LGP Act, and then the 2012 LGP Act, provided a new statutory scheme for the
LGP for retired parliamentarians. That new statutory scheme
arose because the
Remuneration Tribunal expressed the view that it was the responsibility of the
Government to address the "right"
to a LGP for retired
parliamentarians[277].
The Government did address that issue by introducing the 2002 LGP Act, and
then the 2012 LGP Act, both of which Parliament enacted.
- Not
only did each of the 2002 LGP Act and the 2012 LGP Act vary the "right" to a LGP
for retired parliamentarians but s 30(1) of the 2002 LGP Act at all
times expressly provided that a determination of the Remuneration Tribunal had
no effect to the extent it was inconsistent
with the 2002 LGP Act.
The 2002 LGP Act, and then the 2012 LGP Act, made existing
determinations of the Remuneration Tribunal under s 7(1) of the RT Act
dealing with the "right" to a LGP for retired parliamentarians unenforceable to
the extent that they were inconsistent with the 2002 LGP Act. That is not
surprising. As seen earlier, the prospective "right" to a LGP for serving
members was fragile and inherently variable,
as was the "right" that a retired
parliamentarian had to a LGP. To describe determinations made by the
Remuneration Tribunal under
s 7(1) of the RT Act in relation to a LGP as
creating accrued statutory rights is inconsistent with the express words of the
RT Act, the subsequent enactment and express terms of the 2002 LGP Act and the
2012 LGP Act, and the history of the various iterations of the LGP scheme.
Those matters reveal that the "right" to a LGP
suffers from a "congenital
infirmity"[278].
Nothing in the Acts Interpretation Act 1901 (Cth) (whether s 8(c),
s 8B or
s 46(1)(a)[279]
or any other provision) denied those results.
- There
could be no acquisition because the "right" was variable and could be and was
amended from time to time. The "right" to the
LGP held by Mr Moore and
Mr Cohen was not property protected from acquisition by s 51(xxxi) and
there was no acquisition of property within the meaning of
s 51(xxxi)[280].
Conclusions and orders
- For
these reasons, the questions of law which the parties agreed in stating in the
form of a special case for the opinion of the
Full Court under r 27.08.1 of
the High Court Rules should be answered as
follows:
Question One: Do any, and if so which, of the following laws and Determinations
of the Remuneration Tribunal constitute or authorise
an acquisition of any, and
if so what, property of the plaintiffs, or any of them, otherwise than on just
terms, within the meaning
of s 51(xxxi) of the Constitution:
(a) Remuneration Tribunal Act 1973 (Cth), ss 7(1A), 7(1B), 7(1C) and
7(2A);
(b) Remuneration and Other Legislation Amendment Act 2011 (Cth), s 3
(insofar as it made the amendments or repeals provided for in Sched 2, items 1,
16A, 17A, 19, 20, 21(2));
(c) Members of Parliament (Life Gold Pass) and Other Legislation Amendment
Act 2012 (Cth), s 3 (insofar as it made the amendments or repeals
provided for in Sched 2, items 1, 2, 3, 5, 6, 7, 8 and 9);
(d) Members of Parliament (Life Gold Pass) Act 2002 (Cth), s 11(2)
(as originally enacted);
(e) Members of Parliament (Life Gold Pass) and Other Legislation Amendment
Act 2012 (Cth), s 3 (insofar as it made the amendments or repeals
provided for in Sched 1, item 6);
(f) Determination 2012/02, Pt 2 (cl 2.2);
(g) Determination 2012/03, Pt 2 (cl 2.3), Pt 3 (cl 3.1);
(h) Determination 2012/15, Pt 1 (cl 1.3 and cl 1.4 (insofar as it
relates to cl 1.3));
(i) Determination 2013/13, Pt 2 (cl 2.2), Pt 3 (cl 3.3),
Pt 4 (cl 4.1);
(j) Determination 2014/10, Pt 2 (cl 2.2), Pt 3 (cl 3.3),
Pt 4 (cl 4.1);
(k) Determination 2015/06, Pt 2 (cl 2.2), Pt 3 (cl 3.3),
Pt 4 (cl 4.1)?
Answer: No.
Question Two: If the answer to Question One is yes, to what, if any relief are
the plaintiffs, or any of them, entitled in the proceedings?
Answer: Unnecessary to answer.
Question Three: Who should pay the costs of the proceedings?
Answer: The plaintiffs.
[1] Parliamentary Allowances Act
1952 (Cth); Remuneration Tribunal Act 1973 (Cth); Remuneration and
Allowances Act 1990 (Cth); Ministers of State Act 1952 (Cth).
[2] Parliamentary Contributory
Superannuation Act 1948 (Cth), ss 13-14.
[3] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 18.
[4] Remuneration Tribunal Act
1973 (Cth), ss 7(1A), 7(1B), 7(1C), 7(2A); Remuneration and Other
Legislation Amendment Act 2011 (Cth), s 3 (insofar as it made the
amendments or repeals provided for in Sched 2, items 1, 16A, 17A, 19,
20, 21(2)); Members of Parliament (Life Gold Pass) Act 2002 (Cth),
s 11(2) (as originally enacted); Members of Parliament (Life Gold Pass)
and Other Legislation Amendment Act 2012 (Cth), s 3 (insofar as it made
the amendments or repeals provided for in Sched 1, item 6 and Sched 2,
items 1, 2, 3, 5, 6, 7, 8, 9).
[5] Remuneration Tribunal
Determination 2012/02, Pt 2 (cl 2.2); Remuneration Tribunal Determination
2012/03, Pt 2 (cl 2.3), Pt 3 (cl 3.1); Remuneration Tribunal Determination
2012/15, Pt 1 (cl 1.3 and cl 1.4 (insofar as it relates to cl 1.3));
Remuneration Tribunal Determination 2013/13, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4
(cl 4.1); Remuneration Tribunal Determination 2014/10, Pt 2 (cl 2.2), Pt 3
(cl 3.3), Pt 4 (cl 4.1); Remuneration Tribunal Determination 2015/06, Pt 2 (cl
2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1).
[6] Section 51(xxxi) provides:
"The Parliament shall, subject to this Constitution, have power to make laws
for the peace, order, and good government of the Commonwealth with respect to:
...
(xxxi) the acquisition of property on just terms from any ... person for any
purpose in respect of which the Parliament has power
to make laws".
[7] Section 48 provides: "Until
the Parliament otherwise provides, each senator and each member of the House of
Representatives shall receive an
allowance of four hundred pounds a year, to be
reckoned from the day on which he takes his seat." Similarly, s 66 provides:
"There shall be payable to the Queen, out of the Consolidated Revenue Fund of
the Commonwealth, for the salaries of the
Ministers of State, an annual sum
which, until the Parliament otherwise provides, shall not exceed twelve thousand
pounds a year."
[8] Quick and Garran, The Annotated
Constitution of the Australian Commonwealth, (1901) at 499.
[9] Official Record of the Debates
of the Australasian Federal Convention, (Sydney), 2 April 1891 at
653-654.
[10] Similarly, the annual sum
appropriated for the payment of salaries of the Ministers of State under s 66 is
also "until the Parliament otherwise provides".
[11] Section 51(xxxvi) provides:
"The Parliament shall, subject to this Constitution, have power to make laws
for the peace, order, and good government of the Commonwealth with respect to:
...
(xxxvi) matters in respect of which this Constitution makes provision until
the Parliament otherwise provides".
[12] Quick and Garran, The
Annotated Constitution of the Australian Commonwealth, (1901) at 499.
[13] Parliamentary Allowances
Act 1907 (Cth). In respect of s 66, see Ministers of State Act 1915
(Cth).
[14] Financial Emergency Act
1931 (Cth); Financial Emergency Act 1932 (Cth).
[15] As from 5 August 2011, the
Remuneration Tribunal Act was amended by the insertion of s 7(8AA), the
effect of which was to provide that Determinations were not subject to
disallowance.
[16] Theophanous v The
Commonwealth [2006] HCA 18; (2006) 225 CLR 101 at 121 [37]; [2006] HCA 18.
[17] Formerly named the
Parliamentary Retiring Allowances Act 1948 (Cth).
[18] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 14A.
[19] Parliamentary Contributory
Superannuation Act 1948 (Cth), ss 18(1A), 18(1B), 18(2).
[20] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 18(9)(b).
[21] Parliamentary Contributory
Superannuation Act 1948 (Cth), s18(9)(a).
[22] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 18(10).
[23] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 21.
[24] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 21B.
[25] Parliamentary Retiring
Allowances Act 1948 (Cth), s 18 (as enacted).
[26] Parliamentary Retiring
Allowances Act 1948 (Cth), s 18 (as amended by the Parliamentary Retiring
Allowances Act 1964 (Cth)).
[27] Parliamentary Retiring
Allowances Act 1948 (Cth), s 18 (as amended by the Parliamentary and
Judicial Retiring Allowances Act 1973 (Cth)).
[28] Parliamentary Retiring
Allowances Act 1948 (Cth), Pt III.
[29] Parliamentary Retiring
Allowances Act 1948 (Cth), s 13 (as enacted).
[30] Parliamentary Retiring
Allowances Act 1948 (Cth), s 14 (as enacted).
[31] Parliamentary and Judicial
Retiring Allowances Act 1973 (Cth).
[32] Remuneration Tribunal Act
1973 (Cth), s 7(1A).
[33] Members of Parliament (Life
Gold Pass) and Other Legislation Amendment Act 2012 (Cth), Sched 2,
items 1, 2, 5, 6.
[34] Australia, Senate, Remuneration
and Other Legislation Amendment Bill 2011, Supplementary Explanatory Memorandum
at 1.
[35] Remuneration Tribunal
Determination 1976/6 at 18 [2.28].
[36] Remuneration Tribunal
Determination 1976/6 at 18 [2.29].
[37] Remuneration Tribunal
Determination 1976/6 at 19 [2.34].
[38] Remuneration Tribunal
Determination 1993/18 at 32 [7.1].
[39] Members of Parliament (Life
Gold Pass) Act 2002 (Cth), s 32.
[40] Members of Parliament (Life
Gold Pass) and Other Legislation Amendment Act 2012 (Cth), Sched 1, item
6.
[41] Members of Parliament (Life
Gold Pass) and Other Legislation Amendment Act 2012 (Cth), Sched 1, item
5.
[42] Ocean Road Motel Pty Ltd v
Pacific Acceptance Corporation Ltd [1963] HCA 22; (1963) 109 CLR 276 at 280, 282-283;
[1963] HCA 22; The Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at
74 [200]; [1998] HCA 8.
[43] (2007) 231 CLR 651; [2007] HCA
34.
[44] Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 662 [18], 663 [20].
[45] The Commonwealth v New South
Wales [1923] HCA 34; (1923) 33 CLR 1 at 20-21; [1923] HCA 34; Minister of State for the
Army v Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 276, 290; [1944] HCA 4; Bank of New
South Wales v The Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 349; [1948] HCA 7;
Telstra Corporation Ltd v The Commonwealth [2008] HCA 7; (2008) 234 CLR 210 at 230-231
[44]; [2008] HCA 7.
[46] Georgiadis v Australian and
Overseas Telecommunications Corporation (1994) 179 CLR 297 at 305-306;
[1994] HCA 6; The Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at
16-17 [16], 35-36 [78], 54 [140], 70 [182].
[47] Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 664 [23].
[48] Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 664 [24]- [25].
[49] [1998] HCA 8; (1998) 194 CLR 1.
[50] The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 38 [86]. See also Georgiadis v
Australian and Overseas Telecommunications Corporation (1994) 179 CLR 297 at
305-306.
[51] The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 73 [195].
[52] For example, s 3 of the
Constitution does not permit any alteration of the Governor-General's
remuneration.
[53] Grace Brothers Pty Ltd v The
Commonwealth [1946] HCA 11; (1946) 72 CLR 269 at 291; [1946] HCA 11.
[54] Grace Brothers Pty Ltd v The
Commonwealth [1946] HCA 11; (1946) 72 CLR 269 at 290.
[55] The Commonwealth v
Tasmania (The Tasmanian Dam Case) (1983) 158 CLR 1 at 145; [1983] HCA
21; Australian Tape Manufacturers Association Ltd v The Commonwealth
[1993] HCA 10; (1993) 176 CLR 480 at 499-500; [1993] HCA 10; JT International SA v The
Commonwealth [2012] HCA 43; (2012) 250 CLR 1 at 33-34 [42], 53 [118], 68 [169], 99 [278],
130-131 [365]; [2012] HCA 43.
[56] Theophanous v The
Commonwealth [2006] HCA 18; (2006) 225 CLR 101 at 124-126 [56]- [60]; [2006] HCA 18.
[57] Smith v ANL Ltd (2000)
204 CLR 493 at 504-506 [22]-[23]; [2008] HCA 58; Telstra Corporation Ltd v
The Commonwealth [2008] HCA 7; (2008) 234 CLR 210 at 233-234 [52]; [2008] HCA 7; JT
International SA v The Commonwealth [2012] HCA 43; (2012) 250 CLR 1 at 54-64
[119]- [154].
[58] Airservices Australia
v Canadian Airlines International Ltd (1999) 202 CLR 133 at 180-181
[98]-[99]; [1999] HCA 62, applying Mutual Pools & Staff Pty Ltd v The
Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 179-180; [1994] HCA 9.
[59] Nintendo Co Ltd v Centronics
Systems Pty Ltd [1994] HCA 27; (1994) 181 CLR 134 at 161; [1994] HCA 27.
[60] Mutual Pools & Staff Pty
Ltd v The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 177.
[61] Attorney-General (Cth) v
Schmidt [1961] HCA 21; (1961) 105 CLR 361 at 371-372; [1961] HCA 21. See also Bourke v
State Bank of New South Wales [1990] HCA 29; (1990) 170 CLR 276 at 285-286; [1990] HCA
29.
[62] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 349-350; [1948] HCA 7; ICM Agriculture
Pty Ltd v The Commonwealth [2009] HCA 51; (2009) 240 CLR 140 at 197 [134]; [2009] HCA
51.
[63] Kartinyeri v The
Commonwealth [1998] HCA 22; (1998) 195 CLR 337 at 355 [13]; [1998] HCA 22.
[64] Eg Telstra Corporation Ltd v
The Commonwealth [2008] HCA 7; (2008) 234 CLR 210 at 232 [49].
[65] Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 665 [26]- [27]; [2007] HCA 34.
[66] Phonographic Performance Co
of Australia Ltd v The Commonwealth [2012] HCA 8; (2012) 246 CLR 561 at 571 [10], 577
[36], 583 [63], 598-599 [129]; [2012] HCA 8.
[67] Minister for Primary
Industry and Energy v Davey (1993) 47 FCR 151 at 165.
[68] Health Insurance Commission
v Peverill [1994] HCA 8; (1994) 179 CLR 226 at 235; [1994] HCA 8.
[69] Health Insurance Commission
v Peverill [1994] HCA 8; (1994) 179 CLR 226 at 236.
[70] Health Insurance Commission
v Peverill [1994] HCA 8; (1994) 179 CLR 226 at 237.
[71] Cf United States v
Teller [1883] USSC 43; 107 US 64 at 68 (1882) and Lynch v United States [1934] USSC 132; 292 US 571 at
577 (1934), quoted in Health Insurance Commission v Peverill [1994] HCA 8; (1994) 179
CLR 226 at 262.
[72] Ocean Road Motel Pty Ltd v
Pacific Acceptance Corporation Ltd [1963] HCA 22; (1963) 109 CLR 276 at 280, 282-283;
[1963] HCA 22.
[73] Eg Patents Act 1990
(Cth), s 13. See Attorney-General (NT) v Chaffey [2007] HCA 34; (2007) 231 CLR 651 at
664 [24].
[74] Eg Copyright Act 1968
(Cth), ss 32, 89-92. See The Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 194
CLR 1 at 70 [182]; [1998] HCA 8.
[75] Eg Work Health Act 1986
(NT), s 53. See Attorney-General (NT) v Chaffey [2007] HCA 34; (2007) 231 CLR 651 at
662 [18], 665-666 [30].
[76] Eg Petroleum (Submerged
Lands) Act 1967 (Cth), ss 5(8) and 28. See The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 73-75 [198]- [203].
[77] [2007] HCA 34; (2007) 231 CLR 651 at 665-666
[30]- [31].
[78] [2006] HCA 18; (2006) 225 CLR 101 at 113-114
[7].
[79] (1990) 169 CLR 195 at 202;
[1990] HCA 7.
[80] Remuneration and Allowances
Regulations 2005 (Cth).
[81] Section 4(1), "parliamentary
allowance", par (c).
[82] Committee for the Review of
Parliamentary Entitlements, Review of Parliamentary Entitlements,
(2010).
[83] Committee for the Review of
Parliamentary Entitlements, Review of Parliamentary Entitlements, (2010)
at 58-60, 84-85.
[84] Committee for the Review of
Parliamentary Entitlements, Review of Parliamentary Entitlements, (2010)
at 60-61.
[85] Parliamentary Contributory
Superannuation Act 1948 (Cth), s 4(1), "parliamentary allowance", par (d)
(as in force on 5 August 2011).
[86] Remuneration Tribunal
Determination 2012/02.
[87] Remuneration Tribunal
Determination 2012/15.
[88] Remuneration Tribunal
Determination 2013/13.
[89] Remuneration Tribunal
Determinations 2014/10 and 2015/06.
[90] See Acts Interpretation Act
1901 (Cth), ss 8(c), 8B and 46(1)(a) as then in force at the relevant times;
see now Acts Interpretation Act 1901 (Cth), ss 7(2)(c), 7(3)(b) and
46(1)(a)-(b).
[91] Remuneration Tribunal, 1993
Review, (1993) at xxv.
[92] Members of Parliament (Life
Gold Pass) Act 2002 (Cth), s 32; Members of Parliament (Life Gold Pass)
and Other Legislation Amendment Act 2012 (Cth), Sched 1, Item 10. See
generally Wurridjal v The Commonwealth (2009) 237 CLR 309 at 470
[462]-[463]; [2009] HCA 2.
[93] Remuneration Tribunal,
Review of the Remuneration of Members of Parliament: Initial
Report, (2011) at [8.9].
[94] Smith v ANL Ltd (2000)
204 CLR 493 at 501 [9].
[95] The Remuneration Tribunal was
named as the second defendant in the proceedings; it filed a submitting
appearance.
[96] cf Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 664 [23]; [2007] HCA 34.
[97] Theophanous v The
Commonwealth [2006] HCA 18; (2006) 225 CLR 101 at 113-114 [7], 121 [37]; [2006] HCA 18.
[98] Quick and Garran, The
Annotated Constitution of the Australian Commonwealth, (1901) at 499.
[99] Harrison Moore, The
Constitution of the Commonwealth of Australia, (1902) at 113.
[100] Story, Commentaries on
the Constitution of the United States, 5th ed (1891), vol 1 at 627
§858.
[101] [1948] HCA 19; (1948) 77 CLR 62 at 69;
[1948] HCA 19.
[102] Remuneration and Other
Legislation Amendment Act 2011 (Cth), Sched 2, item 16A.
[103] Remuneration and Other
Legislation Amendment Act 2011 (Cth), Sched 2, item 17A.
[104] Sched 2, items 5,
6.
[105] Section 3(1) of the
Remuneration Tribunal Act contains definitions relevant to these provisions but
it is not necessary to notice their detail.
[106] Remuneration and Other
Legislation Amendment Act 2011 (Cth), Sched 2, item 1.
[107] Members of Parliament
(Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
Sched 2, items 1, 2, 5 and 6.
[108] Lynch v United States
[1934] USSC 132; 292 US 571 at 577 (1934); Health Insurance Commission v Peverill
[1994] HCA 8; (1994) 179 CLR 226 at 261-262; [1994] HCA 8.
[109] cf Health Insurance
Commission v Peverill [1994] HCA 8; (1994) 179 CLR 226 at 260-262; The Commonwealth v
WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 52-53 [137]- [138], see also at 73
[197]; [1998] HCA 8.
[110] [2006] HCA 18; (2006) 225 CLR 101 at
113-114 [7].
[111] National Trustees
Executors and Agency Co of Australasia Ltd v Federal Commissioner of Taxation
[1954] HCA 71; (1954) 91 CLR 540 at 557-558, 571-572, 580-587; [1954] HCA 71; Georgiadis
v Australian and Overseas Telecommunications Corporation (1994) 179 CLR 297
at 305; [1994] HCA 6; The Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR
1 at 73 [197].
[112] The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 99 [253]; Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 669 [43].
[113] [2007] HCA 34; (2007) 231 CLR 651 at 664
[23].
[114] See The Commonwealth v
WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 70 [182].
[115] cf Attorney-General (NT)
v Chaffey [2007] HCA 34; (2007) 231 CLR 651.
[116] Attorney-General (NT) v
Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 662 [18], 663 [20], 665-666 [30]; see also
Ocean Road Motel Pty Ltd v Pacific Acceptance Corporation Ltd [1963] HCA 22; (1963) 109
CLR 276 at 280, 282-283; [1963] HCA 22; The Commonwealth v WMC Resources
Ltd [1998] HCA 8; (1998) 194 CLR 1 at 73-74 [198]- [200].
[117] Pape v Federal
Commissioner of Taxation (2009) 238 CLR 1 at 23 [8(5)], 36 [53], 55-56
[111]-[113], 72-75 [176], [178], [180], [183]-[184], 100-101 [283], 105 [296],
113 [320],
210 [600], 213 [607]; [2009] HCA 23.
[118] cf The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 69-70 [181].
[119] Re Australian Education
Union; Ex parte Victoria [1995] HCA 71; (1995) 184 CLR 188 at 233; [1995] HCA 71; Austin
v The Commonwealth (2003) 215 CLR 185 at 217-218 [25]; [2003] HCA 3.
[120] (1994) 179 CLR 297 at
305-306.
[121] See Health Insurance
Commission v Peverill [1994] HCA 8; (1994) 179 CLR 226 per Mason CJ, Deane and
Gaudron JJ.
[122] R v Boston [1923] HCA 59; (1923) 33
CLR 386 at 400-401; [1923] HCA 59.
[123] [1923] HCA 59; (1923) 33 CLR 386 at
400.
[124] 2nd ed (1886) at 532.
[125] Remuneration Tribunal,
1976 Review: Statement, Parliamentary Paper No 219/1976 at 29.
[126] Members of Parliament
(Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
Sched 1, item 6.
[127] Members of Parliament
(Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
Sched 1, item 10.
[128] Wurridjal v The
Commonwealth (2009) 237 CLR 309 at 364-365 [104], 389-390 [196]-[197],
428-434 [321]-[339], 469-471 [461]-[466]; [2009] HCA 2.
[129] See Pape v Federal
Commissioner of Taxation (2009) 238 CLR 1 at 23 [8(5)], 36 [53], 55-56
[111]-[113], 72-75 [176], [178], [180], [183]-[184], 100-101 [283], 105 [296],
113 [320],
210 [600], 213 [607].
[130] The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 69-70 [181], 73-74 [198].
[131] cf Remuneration Tribunal
Determination 1976/6 at 18 [2.28].
[132] Health Insurance
Commission v Peverill [1994] HCA 8; (1994) 179 CLR 226 at 245.
[133] [1948] HCA 19; (1948) 77 CLR 62 at 68,
76-77.
[134] Parliamentary
Contributory Superannuation Amendment Act 1978 (Cth), s 4.
[135] Parliamentary Retiring
Allowances Act 1948 (Cth), s 17 (as enacted).
[136] Parliamentary Retiring
Allowances Act 1948, s 16 (as enacted).
[137] Parliamentary Retiring
Allowances Act 1952 (Cth), ss 3, 6.
[138] Parliamentary Retiring
Allowances Act 1955 (Cth), s 6.
[139] Parliamentary Retiring
Allowances Act 1959 (Cth), s 7.
[140] Parliamentary Retiring
Allowances Act 1964 (Cth), s 6.
[141] Parliamentary Retiring
Allowances Act 1964, s 10.
[142] See, eg, Parliamentary
and Judicial Retiring Allowances Act 1973 (Cth), s 14.
[143] Parliamentary and
Judicial Retiring Allowances Act 1973, ss 9(2), 13.
[144] Parliamentary and
Judicial Retiring Allowances Act 1973, s 15(1)(b).
[145] Parliamentary and
Judicial Retiring Allowances Act 1973, s 15(1)(d), (4).
[146] Parliamentary and
Judicial Retiring Allowances Act 1973, s 15(1)(g).
[147] Parliamentary and
Judicial Retiring Allowances Act 1973, s 15(1)(g).
[148] Parliamentary
Contributory Superannuation Amendment Act 1978, s 5(2).
[149] Parliamentary
Contributory Superannuation Amendment Act 1978, s 9(1)(e).
[150] Parliamentary
Contributory Superannuation Amendment Act 1978, s 9(1)(e).
[151] Parliamentary
Contributory Superannuation Amendment Act 1978, s 9(1)(e).
[152] Parliamentary
Contributory Superannuation Amendment Act 1978, ss 5(1)(a),
9(1)(e).
[153] Parliamentary
Contributory Superannuation Amendment Act 1981 (Cth), ss 2(2), 3,
6.
[154] Parliamentary
Contributory Superannuation Amendment Act 1981, s 15.
[155] Remuneration and
Allowances Act 1990 (Cth), Sched 3, cl 1.
[156] Parliamentary
Contributory Superannuation Amendment Act 1996 (Cth), Sched 1,
item 5.
[157] Remuneration and Other
Legislation Amendment Act 2011 (Cth), Sched 2, item 1.
[158] Quick and Garran, The
Annotated Constitution of the Australian Commonwealth, (1901) at 499; Moore,
The Constitution of the Commonwealth of Australia, (1902) at 113.
[159] Ocean Road Motel Pty Ltd
v Pacific Acceptance Corporation Ltd [1963] HCA 22; (1963) 109 CLR 276 at 280 per
Taylor J, 282-283 per Menzies J; [1963] HCA 22.
[160] (2009) 237 CLR 309 at 440
[364]; [2009] HCA 2.
[161] (1994) 179 CLR 226; [1994]
HCA 8.
[162] The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 29 [53] per Toohey J, 73
[194] per Gummow J, 93-94 [241] per Kirby J; [1998] HCA 8.
[163] Theophanous v The
Commonwealth [2006] HCA 18; (2006) 225 CLR 101 at 113-114 [7] per Gleeson CJ; [2006]
HCA 18.
[164] See, eg, Financial
Emergency Act 1931 (Cth), ss 8, 9.
[165] Quick and Garran, The
Annotated Constitution of the Australian Commonwealth, (1901) at 499; Moore,
The Constitution of the Commonwealth of Australia, (1902) at 113.
[166] Georgiadis v Australian
and Overseas Telecommunications Corporation (1994) 179 CLR 297 at 325;
[1994] HCA 6; Mutual Pools & Staff Pty Ltd v The Commonwealth
[1994] HCA 9; (1994) 179 CLR 155 at 223; [1994] HCA 9; The Commonwealth
v Mewett (1997) 191 CLR 471 at 532; [1997] HCA 29; WMC Resources
[1998] HCA 8; (1998) 194 CLR 1 at 53-55 [139]- [142].
[167] Mewett (1997) 191 CLR
471 at 552 per Gummow and Kirby JJ; Attorney-General (NT) v Chaffey
[2007] HCA 34; (2007) 231 CLR 651 at 664 [24] per Gleeson CJ, Gummow, Hayne and
Crennan JJ; [2007] HCA 34; Wurridjal (2009) 237 CLR 309 at
439-440 [363]-[364] per Crennan J; JT International SA v The
Commonwealth [2012] HCA 43; (2012) 250 CLR 1 at 48 [103] per Gummow J; [2012]
HCA 43.
[168] [1998] HCA 8; (1998) 194 CLR 1 at 70
[182]; see also Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 664 [24] per
Gleeson CJ, Gummow, Hayne and Crennan JJ; JT International
[2012] HCA 43; (2012) 250 CLR 1 at 59 [137] per Gummow J.
[169] WMC Resources [1998] HCA 8; (1998)
194 CLR 1 at 73 [194] per Gummow J; Chaffey [2007] HCA 34; (2007) 231 CLR 651 at
664 [22] per Gleeson CJ, Gummow, Hayne and Crennan JJ.
[170] Allpike v The
Commonwealth [1948] HCA 19; (1948) 77 CLR 62 at 69 per Latham CJ, 76-77 per
Dixon J; [1948] HCA 19; Peverill [1994] HCA 8; (1994) 179 CLR 226 at 237 per
Mason CJ, Deane and Gaudron JJ; WMC Resources [1998] HCA 8; (1998) 194 CLR 1
at 52 [137] per McHugh J, 73 [196] per Gummow J; United States v
Teller [1883] USSC 43; 107 US 64 at 68 (1882); Lynch v United States [1934] USSC 132; 292 US 571 at
577 (1934).
[171] Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 665 [26]- [27] per Gleeson CJ, Gummow, Hayne and
Crennan JJ.
[172] Theophanous [2006] HCA 18; (2006)
225 CLR 101 at 113-114 [7] per Gleeson CJ; see also Re Manufacturing
Grocers' Employees Federation of Australia; Ex parte Australian Chamber of
Manufactures [1986] HCA 23; (1986) 160 CLR 341 at 355; [1986] HCA 23;
Re Amalgamated Metal Workers Union; Ex parte Shell Co of Australia
Ltd [1992] HCA 38; (1992) 174 CLR 345 at 356 per Mason CJ, Deane, Toohey and
Gaudron JJ; [1992] HCA 38.
[173] R v Toohey; Ex parte
Meneling Station Pty Ltd [1982] HCA 69; (1982) 158 CLR 327 at 342 per
Mason J; [1982] HCA 69.
[174] Commissioner of Stamp
Duties (NSW) v Yeend [1929] HCA 39; (1929) 43 CLR 235 at 245 per
Isaacs J; [1929] HCA 39.
[175] Minister of State for the
Army v Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 290 per Starke J; [1944]
HCA 4; Victoria v The Commonwealth (Industrial Relations Act
Case) (1996) 187 CLR 416 at 559 per Brennan CJ, Toohey, Gaudron, McHugh
and Gummow JJ; [1996] HCA 56; Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 663
[21] per Gleeson CJ, Gummow, Hayne and Crennan JJ.
[176] Bank of NSW v The
Commonwealth ("the Bank Nationalisation Case") [1948] HCA 7; (1948) 76 CLR 1 at 349
per Dixon J; [1948] HCA 7; see also Australian Tape Manufacturers
Association Ltd v The Commonwealth ("the Blank Tapes Levy Case")
[1993] HCA 10; (1993) 176 CLR 480 at 509 per Mason CJ, Brennan, Deane and
Gaudron JJ; [1993] HCA 10.
[177] Cf Georgiadis (1994)
179 CLR 297 at 312 per Brennan J.
[178] Georgiadis (1994) 179
CLR 297 at 306 per Mason CJ, Deane and Gaudron JJ; see also The
Commonwealth v Tasmania (The Tasmanian Dam Case) (1983) 158 CLR 1 at
283 per Deane J; [1983] HCA 21; Newcrest Mining (WA) Ltd v The
Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at 530 per Brennan CJ; [1997]
HCA 38; JT International [2012] HCA 43; (2012) 250 CLR 1 at 33-34 [42]
per French CJ, 57 [131]-[132] per Gummow J, 68 [169] per Hayne and
Bell JJ, 110 [305] per Crennan J, 130 [364]-[365] per
Kiefel J.
[179] Peverill [1994] HCA 8; (1994) 179
CLR 226 at 237 per Mason CJ, Deane and Gaudron JJ;
cf JT International [2012] HCA 43; (2012) 250 CLR 1 at 59 [138] per
Gummow J.
[180] [2007] HCA 34; (2007) 231 CLR 651 at 662
[18], 665 [30] per Gleeson CJ, Gummow, Hayne and Crennan JJ.
[181] [2007] HCA 34; (2007) 231 CLR 651 at 664
[25] per Gleeson CJ, Gummow, Hayne and Crennan JJ.
[182] Ocean Road Motel
[1963] HCA 22; (1963) 109 CLR 276 at 280 per Taylor J, 282-283 per Menzies J.
[183] Determinations 1976/6,
1977/9, 1980/8, 1981/13 and 1984/18.
[184] Members of Parliament
(Life Gold Pass) Act 2002 (Cth), s 11.
[185] Members of Parliament
(Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth),
Sched 1, item 6.
[186] Reasons of French CJ,
Kiefel and Bell JJ at [50].
[187] Those provisions were
inserted, and other related amendments were made to the RT Act and the
Superannuation Act, by provisions which the plaintiffs also contended are
invalid: s 3 and Items 1, 16A, 17A, 19, 20, 21(2) of Sched 2 to the
Remuneration and Other Legislation Amendment Act 2011 (Cth) ("the 2011
Amendment Act"); s 3 and Items 1, 2, 3, 5-9 of Sched 2 to the Members of
Parliament (Life Gold Pass) and Other Legislation Amendment Act 2012 (Cth)
("the 2012 LGP Act"). These provisions are also "RT Impugned
Provisions and Determinations".
[188] Determination 2012/02,
Pt 2 (cl 2.2); Determination 2012/03, Pt 2 (cl 2.3),
Pt 3 (cl 3.1); Determination 2012/15, Pt 1 (cl 1.3 and
cl 1.4 (insofar as it relates to cl 1.3)); Determination 2013/13,
Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1); Determination
2014/10, Pt 2 (cl 2.2), Pt 3 (cl 3.3), Pt 4 (cl 4.1);
Determination 2015/06, Pt 2 (cl 2.2), Pt 3 (cl 3.3),
Pt 4 (cl 4.1).
[189] s 3 and Item 6 of Sched
1 to the 2012 LGP Act.
[190] See The Commonwealth v
WMC Resources Ltd [1998] HCA 8; (1998) 194 CLR 1 at 75 [203]; [1998] HCA 8 citing
Norman v Baltimore & Ohio Railroad Co [1935] USSC 46; 294 US 240 at 308 (1935).
[191] Theophanous v The
Commonwealth [2006] HCA 18; (2006) 225 CLR 101 at 113 [7], 121 [37]; [2006] HCA 18.
[192] See Theophanous
[2006] HCA 18; (2006) 225 CLR 101 at 113 [7].
[193] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 349; [1948] HCA 7; Attorney-General (Cth)
v Schmidt [1961] HCA 21; (1961) 105 CLR 361 at 370-371; [1961] HCA 21.
[194] Schmidt [1961] HCA 21; (1961) 105
CLR 361 at 371.
[195] See JT International SA v
The Commonwealth [2012] HCA 43; (2012) 250 CLR 1 at 67 [167]; [2012] HCA 43;
Attorney-General (NT) v Emmerson [2014] HCA 13; (2014) 253 CLR 393 at 445 [107];
[2014] HCA 13.
[196] Schmidt [1961] HCA 21; (1961) 105 CLR
361 at 371-372.
[197] See Mutual Pools &
Staff Pty Ltd v The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 169-170, 177-178,
186-187; [1994] HCA 9.
[198] See, in a similar context,
ICM Agriculture Pty Ltd v The Commonwealth [2009] HCA 51; (2009) 240 CLR 140 at
199 [141]; [2009] HCA 51.
[199] Clunies-Ross v The
Commonwealth [1984] HCA 65; (1984) 155 CLR 193 at 201-202; [1984] HCA 65; Telstra
Corporation Ltd v The Commonwealth [2008] HCA 7; (2008) 234 CLR 210 at 230 [43];
[2008] HCA 7.
[200] Australian Tape
Manufacturers Association Ltd v The Commonwealth [1993] HCA 10; (1993) 176 CLR 480 at
509; [1993] HCA 10 quoting Minister of State for the Army v Dalziel
[1944] HCA 4; (1944) 68 CLR 261 at 290; [1944] HCA 4. See also Attorney-General
(NT) v Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 663 [21]; [2007] HCA 34;
Telstra [2008] HCA 7; (2008) 234 CLR 210 at 232 [49].
[201] See Georgiadis v
Australian and Overseas Telecommunications Corporation (1994) 179 CLR 297 at
305-306; [1994] HCA 6; Health Insurance Commission v Peverill [1994] HCA 8; (1994) 179
CLR 226 at 237; [1994] HCA 8.
[202] Telstra [2008] HCA 7; (2008) 234
CLR 210 at 232 [49].
[203] Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 664 [22].
[204] s 18(1) of the
Superannuation Act.
[205] "[R]etiring allowance" was
defined in s 4(1) of the Superannuation Act, in relation to a person, to
mean "the retiring allowance payable to the person under this Act and, in the
case of a person who ceased
or ceases to be a member after 30 June 1980,
includes additional retiring allowance (if any) payable to the person under
subsection
18(9)".
[206] See s 18(6) of the
Superannuation Act. cf s 18(2)(aa) of the Superannuation Act.
[207] See s 18(2) and (4) of
the Superannuation Act.
[208] Determined in accordance
with s 18(10) in respect of the period of service in the relevant
position.
[209] Item 16A of Sched 2 to the
2011 Amendment Act.
[210] Item 17A of Sched 2 to the
2011 Amendment Act.
[211] Item 1 of Sched 2 to the
2011 Amendment Act.
[212] Georgiadis (1994) 179
CLR 297 at 305-306; Peverill [1994] HCA 8; (1994) 179 CLR 226 at 237; Chaffey
[2007] HCA 34; (2007) 231 CLR 651 at 664 [25], 665-666 [30].
[213] cf Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 673 [60].
[214] Then called the
Parliamentary Retiring Allowances Act 1948 (Cth).
[215] s 10 of the
Parliamentary Retiring Allowances Act 1964 (Cth).
[216] See [308]-[318] below.
[217] s 15 of the
Parliamentary and Judicial Retiring Allowances Act 1973 (Cth).
[218] s 33 of the
Superannuation Laws Amendment Act 1994 (Cth).
[219] Clause 1(4) of Sched 3
to the 1990 Allowances Act provided that, apart from the other scheduled
increases, the salary would increase proportionately to any increase in the SES
Band
1 salary in the period from 1 July 1990 to 30 June 1991.
[220] Item 2 of Sched 2 to the
Industrial Relations Legislation Amendment Act (No 2) 1994
(Cth).
[221] Item 5 of Sched 1 to the
Parliamentary Contributory Superannuation Amendment Act 1996 (Cth),
assented to on 9 July 1996.
[222] Item 775 of Sched 1 to the
Public Employment (Consequential and Transitional) Amendment Act 1999
(Cth).
[223] Item 5 of Sched 1 to the
Parliamentary Contributory Superannuation Amendment Act 1996 (Cth).
[224] See Parliamentary
Allowances Act 1907 (Cth).
[225] s 4 of the
Parliamentary Allowances Act 1956 (Cth).
[226] s 4 of the
Parliamentary Allowances Act 1959 (Cth).
[227] Sched to the
Parliamentary Allowances Act 1964 (Cth).
[228] Sched to the
Parliamentary Allowances Act 1968 (Cth).
[229] Sched 1 to the
Remuneration and Allowances Act 1973 (Cth).
[230] s 4 of the RT Act.
[231] See Pt II of the
Remuneration and Allowances Act 1979 (Cth); ss 3-6, 14 of the
Remuneration and Allowances Amendment Act 1981 (Cth); ss 169-170 of
the Statute Law (Miscellaneous Amendments) Act (No 1) 1982 (Cth);
ss 3, 7(1), 8 of the Salaries and Wages Pause Act 1982 (Cth);
amendments to the 1952 Allowances Act in Sched 1 to the Statute Law
(Miscellaneous Provisions) Act (No 1) 1983 (Cth); ss 7-9, 20, 24
of the Remuneration and Allowances Amendment Act 1984 (Cth);
ss 3-5, 14 of the Remuneration and Allowances Alteration Act 1986
(Cth).
[232] See [297] above.
[233] See, eg, Sched 2 to the
Industrial Relations Legislation Amendment Act (No 2) 1994 (Cth);
[297]-[299] above.
[234] See, eg, Ministers of
State Act 1956 (Cth); Ministers of State Act 1959 (Cth); Ministers
of State Act 1964 (Cth).
[235] See s 6(1) of the RT
Act. See, eg, Remuneration Tribunal, Report Number 1 of 2015: Report on
Ministers of State – Salaries Additional to the Basic Parliamentary
Salary, (2015).
[236] See, eg, Report of the
Committee of Enquiry into the Salaries and Allowances of Members of the National
Parliament, (1952); Report of the Committee of Inquiry into the Salaries
and Allowances of Members of the Commonwealth Parliament, (1955);
Commonwealth Actuary, Parliamentary Retiring Allowances Fund, (1957);
Report of the Committee of Inquiry into the Salaries and Allowances of
Members of the Commonwealth Parliament, (1959); Report by the
Commonwealth Actuary upon the Parliamentary Retiring Allowances Fund,
(1959); Salaries and Allowances of Members of the Parliament of the
Commonwealth: Report of Inquiry by Mr Justice Kerr, (1971); Remuneration
Tribunal, 1976 Review: Statement, (1976); Remuneration Tribunal, 1988
Review, (1988); Remuneration Tribunal, 1993 Review, (1993); Senate
Select Committee on Superannuation, The Parliamentary Contributory
Superannuation Scheme & the Judges' Pension Scheme, (1997); Australian
National Audit Office, Administration of Parliamentarians' Entitlements by
the Department of Finance and Deregulation, (2009).
[237] Belcher Review at 8.
[238] Belcher Review at 12, 50-51,
Recommendation 1.
[239] Belcher Review at 13, 59-60,
Recommendation 6.
[240] Belcher Review at 17, 83,
Recommendation 20.
[241] Belcher Review at 60-61,
Recommendation 7; see also at 13.
[242] For the 2011 Amendment Act,
see Australia, House of Representatives, Remuneration and Other Legislation
Amendment Bill 2011, Explanatory Memorandum at 2, 9; Australia, Senate,
Remuneration and Other Legislation Amendment Bill 2011, Supplementary
Explanatory Memorandum; Australia, House of Representatives, Parliamentary
Debates (Hansard), 24 March 2011 at 3156-3158. For the 2012 LGP
Act, see Australia, House of Representatives, Members of Parliament (Life Gold
Pass) and Other Legislation Amendment Bill 2012, Explanatory Memorandum at 1;
Australia, House of Representatives, Parliamentary Debates (Hansard), 9
February 2012 at 556.
[243] See Australia, House of
Representatives, Members of Parliament (Life Gold Pass) and Other Legislation
Amendment Bill 2012, Explanatory Memorandum at 1.
[244] Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 664 [25]. See also Quick and Garran, The Annotated
Constitution of the Australian Commonwealth, 2nd ed (rev) (2015) at
573-574.
[245] s 18(1) of the
Superannuation Act. See, eg, Chaffey [2007] HCA 34; (2007) 231 CLR 651 at 662 [18], 665
[30], 670-671 [49].
[246] s 7(1) of the RT
Act.
[247] See Chaffey [2007] HCA 34; (2007)
231 CLR 651 at 663-664 [21]- [25]; Telstra [2008] HCA 7; (2008) 234 CLR 210 at 230-231
[43]- [44]. See also Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 284-285, 290, 295.
[248] Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 665-666 [30]; WMC Resources [1998] HCA 8; (1998) 194 CLR 1 at 16-17
[15]- [16], 38 [86], 75 [203].
[249] See, eg, Chaffey
[2007] HCA 34; (2007) 231 CLR 651 at 673 [60].
[250] See Australia, Senate,
Remuneration and Other Legislation Amendment Bill 2011, Supplementary
Explanatory Memorandum; see also Belcher Review at 13, 60-61, Recommendation 7.
[251] See, eg, Belcher Review at
8.
[252] Belcher Review at 13,
58-60.
[253] Belcher Review at 59.
[254] Belcher Review at 61.
[255] Belcher Review at 59.
[256] Theophanous [2006] HCA 18; (2006)
225 CLR 101 at 113-114 [7]. cf Peverill [1994] HCA 8; (1994) 179 CLR 226 at 237.
[257] Mutual Pools [1994] HCA 9; (1994)
179 CLR 155 at 188.
[258] Remuneration Tribunal,
Determination 1993/18.
[259] Remuneration Tribunal,
Determination 1976/6, as modified by Determinations 1977/9, 1980/8 and
1984/18.
[260] Item 6 of Sched 1 to the
2012 LGP Act.
[261] See, eg, Item 2 of the table
in s 11(2) of the 2002 LGP Act.
[262] Mr Moore claimed that the
2012 LGP Act resulted in an acquisition of his property otherwise than on just
terms and Mr Cohen claimed that both the 2002 LGP Act and the 2012 LGP Act
resulted in an acquisition of his property otherwise than on just terms.
[263] See Brown v West
(1990) 169 CLR 195 at 202; [1990] HCA 7.
[264] See cll 2.28-2.33 of
Determination 1976/6.
[265] cl 2.34 of
Determination 1976/6.
[266] See Determinations 1977/9,
1980/8, 1981/13 and 1984/18.
[267] Remuneration Tribunal,
1993 Review, (1993) at xxv and Determination 1993/18.
[268] s 30(3) of the 2002 LGP
Act.
[269] Item 6 of Sched 1 to the
2012 LGP Act.
[270] See Theophanous
[2006] HCA 18; (2006) 225 CLR 101 at 113 [7], 121 [37].
[271] See WMC Resources
[1998] HCA 8; (1998) 194 CLR 1 at 75 [203] citing Norman v Baltimore & Ohio
Railroad Co [1935] USSC 46; 294 US 240 at 308 (1935).
[272] cf Brown v West
(1990) 169 CLR 195 at 202.
[273] See also Peverill
[1994] HCA 8; (1994) 179 CLR 226 at 237; Georgiadis (1994) 179 CLR 297 at 305-306;
WMC Resources [1998] HCA 8; (1998) 194 CLR 1 at 75 [203]; Chaffey [2007] HCA 34; (2007)
231 CLR 651 at 665-666 [30].
[274] s 30(2) and (3) of the
2002 LGP Act.
[275] See cll 6.3-6.4 of
Determination 1977/9, superseding cll 2.31-2.32 of Determination
1976/6.
[276] Chaffey [2007] HCA 34; (2007) 231
CLR 651 at 664 [25]. See also Quick and Garran, The Annotated
Constitution of the Australian Commonwealth, 2nd ed (rev) (2015) at
573-574.
[277] Remuneration Tribunal,
1993 Review, (1993) at xxv.
[278] See WMC Resources
[1998] HCA 8; (1998) 194 CLR 1 at 75 [203] citing Norman v Baltimore & Ohio
Railroad Co [1935] USSC 46; 294 US 240 at 308 (1935).
[279] As those provisions stood
before the amendments made by the Acts Interpretation Amendment Act 2011
(Cth).
[280] WMC Resources [1998] HCA 8; (1998)
194 CLR 1 at 16-17 [15]- [16], 38 [86], 75 [203]; Chaffey [2007] HCA 34; (2007) 231 CLR
651 at 665-666 [30].