LibertyWorks Inc v Commonwealth of Australia [2021] HCA 18 (16 June 2021)
HIGH COURT OF AUSTRALIA
KIEFEL CJ,
GAGELER,
KEANE, GORDON, EDELMAN, STEWARD AND GLEESON JJ
LIBERTYWORKS INC PLAINTIFF
AND
COMMONWEALTH OF
AUSTRALIA DEFENDANT
LibertyWorks Inc v Commonwealth of Australia
[2021]
HCA 18
Date of Hearing: 2 March 2021
Date of Judgment: 16 June
2021
S10/2020
ORDER
The questions of law stated in the Amended Special Case filed on 1 March
2021 be answered as follows:
- Is
the Foreign Influence Transparency Scheme Act 2018 (Cth) invalid, to the
extent it imposes registration obligations with respect to communications
activities, on the ground that it
infringes the implied freedom of political
communication?
Answer: No.
- In
light of the answer to question 1, what relief, if any, should
issue?
Answer: None.
- Who
should pay the costs of and incidental to this special
case?
Answer: The plaintiff should pay the defendant's costs.
Representation
P J Dunning QC with R Scheelings for the
plaintiff (instructed by Speed and Stracey Lawyers)
S P Donaghue QC,
Solicitor-General of the Commonwealth, with B K Lim and S Zeleznikow for the
defendant (instructed by Australian
Government Solicitor)
M G Sexton SC,
Solicitor-General for the State of New South Wales, with S Robertson for
the Attorney-General for the State of New
South Wales, intervening (instructed
by Crown Solicitor's Office
(NSW))
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
LibertyWorks Inc v
Commonwealth of Australia
Constitutional law (Cth) – Implied
freedom of communication about governmental or political matters ("implied
freedom") –
Where Foreign Influence Transparency Scheme Act 2018
(Cth) ("Act") included registration requirement for persons undertaking
communications activity on behalf of foreign principal for
purpose of political
or governmental influence – Where foreign principal defined to include
foreign political organisation
– Where plaintiff undertook registrable
activities on behalf of foreign political organisation in holding annual
Conservative
Political Action Conference events which constituted communications
activity – Whether Act to extent it imposes registration obligations with
respect to communications activity undertaken on behalf of foreign principal
effectively
burdens implied freedom ‑– Whether provisions for
legitimate purpose – Whether provisions suitable, necessary and
adequate
in balance.
Words and phrases – "adequate in its balance",
"burden", "communications activity", "compelling justification", "disclosure",
"foreign influence", "foreign interference", "foreign political organisation",
"foreign principal", "legitimate purpose", "narrowly
tailored", "necessary",
"political or governmental influence", "prior restraint", "register",
"registration", "scheme information",
"structured proportionality", "suitable",
"transparency", "undisclosed influence".
Foreign Influence
Transparency Scheme Act 2018 (Cth), ss 11, 12, 13, 16, 18, 21, 38, 42, 43,
45, 46, 52, 53.
Foreign Influence Transparency Scheme (Disclosure in
Communications Activity) Rules 2018 (Cth).
Foreign Influence
Transparency Scheme Rules 2018 (Cth), s 6.
- KIEFEL CJ,
KEANE AND GLEESON JJ. The plaintiff, LibertyWorks Inc, was incorporated
in 2015 under the Associations Incorporation Act 1981 (Qld). It presently
has 1,290 members in Australia. It is described in the Amended Special Case as
"a private think-tank with an aim
to move public policy in the direction of
increased individual rights and freedoms, including the promotion of freedom of
speech
and political communication". Since its incorporation the plaintiff has
organised political conferences in Australia and made submissions
to
parliamentary enquiries on freedom of political speech. It maintains a website
from which it has published more than 200 posts
which seek to raise awareness of
individual freedom in public policy and it maintains a social media
presence.
- The
American Conservative Union ("the ACU") was established as a corporation in the
United States of America for the promotion of
political freedom and for the
purpose of influencing politics and politicians in that country from what is
described in the Amended
Special Case as a "conservative/classical liberal"
perspective. Its Articles of Incorporation refer to its objects as being to
foster
and develop "a greater understanding and awareness of the tenets set
forth in the Constitution of the United States and the Declaration of
Independence to the end that the individual citizen shall understand, preserve
and defend
his or her inherent rights, liberties and responsibilities and
cherish the principles upon which the Republic was founded".
- A
statement on the website of the ACU refers to its purpose as being to "harness
the collective strength of the conservative movement
and support the campaigns
of conservative candidates". To this end the ACU organises and holds an annual
multi‑day political
conference in the United States called the
"Conservative Political Action Conference" ("CPAC"). Prominent people, including
the immediate
past President and Vice‑President of the United States,
government officials and sections of the media have attended CPAC.
- At
a meeting in 2018 between the President of the plaintiff and the Executive
Director of the ACU it was agreed that the plaintiff
and the ACU would
collaborate in a CPAC event to be held in Australia in 2019, and that the ACU
would provide the plaintiff with
the names of speakers and otherwise assist to
ensure its success. Since then the ACU has registered the word "CPAC" and a CPAC
logo
as trademarks in Australia. The CPAC event the subject of the discussions
was held in Sydney in August 2019 and was widely marketed
by the plaintiff. The
CPAC event featured speakers from Australia, the United States, England and
Japan. It included politicians
(past and present), media personalities, members
of "think tanks", economists and social commentators. The promotional material
for
the event described the ACU as the "Think Tank Host Partners" and a
"co‑host" of it with the plaintiff. The Chairman, Executive
Director and
another board member of the ACU, together with ACU staff, attended the CPAC
event. According to the Amended Special
Case, another CPAC event was proposed to
be held in Australia in November 2020.
- A
Deputy Secretary of the Attorney-General's Department wrote to the President of
the plaintiff in August 2019 concerning the upcoming
CPAC event to be
presented by the plaintiff and the ACU. The Deputy Secretary outlined the scheme
of the Foreign Influence Transparency Scheme Act 2018 (Cth) ("the FITS
Act"), and observed that the ACU would appear to fall within the definition of a
"foreign political organisation" and therefore would
be considered a "foreign
principal" and that an event such as the CPAC event would appear to be a
"communications activity". The
plaintiff was asked to consider whether it was
required to register its arrangements with the ACU under the scheme. Further
correspondence
followed, including a notice purporting to be given under
s 45 of the FITS Act, which required information and documents which might
enable the Deputy Secretary to determine whether the plaintiff was liable to
register. The notice was not complied with and ultimately was not further
pursued. The plaintiff has not to date registered under
the FITS Act.
- The
plaintiff claims that the provisions of the FITS Act respecting communications
activity by a person who acts on behalf of a foreign principal burden the
freedom of political communication
which is implied by the Constitution,
cannot be justified and are therefore invalid.
Foreign influence
– agreed facts
- It
is agreed between the parties to this Amended Special Case that in recent years
there has been a global trend of attempts at the
foreign influence of democratic
processes. Official reports[1]
have concluded that a foreign country sought to undermine the Brexit referendum
in the United Kingdom, the 2016 Presidential election
in the United States and
the 2017 French Presidential election. Foreign actors in many countries have
also sought to exert covert
influence through the use of both traditional and
social media, including by spreading disinformation and propaganda. Two social
media platforms have taken action against cyber troops engaged in foreign
influence operations in at least seven
countries[2].
- At
the time that the FITS Act was enacted the Australian Security Intelligence
Organisation ("ASIO") had warned that espionage and foreign interference
activity
against Australia's interests was "occurring at an unprecedented
scale"[3]. Australia was
experiencing undisclosed foreign influence both in respect of government and
political systems and processes and more
broadly in the Australian community.
ASIO identified foreign powers clandestinely seeking to shape the opinions of
members of the
Australian public, media organisations and government officials
to advance their own countries' political objectives, including through
the
recruitment and co‑opting of influential and powerful Australian voices to
lobby decision‑makers. It identified ethnic
and religious communities in
Australia as the subjects of covert influence operations designed to diminish
their criticism of foreign
governments[4].
- The
parties agree that there is a distinction to be drawn between foreign
interference and foreign influence. The parties agree that
foreign influence may
be taken to refer to activities undertaken on behalf of a foreign principal that
influence government and political
systems and processes. Foreign influence will
amount to foreign interference if it is undertaken using covert, deceptive,
corrupting
or threatening means to damage or destabilise the government or
political processes of a
country[5].
- In
Australia, ASIO reports, foreign principals often pursue their own interests by
engaging Australians to seek to influence governments
and others on their
behalf. Almost every sector of the Australian community is a potential target
for foreign influence but this
is said to be particularly true in relation to
parliamentarians and their staff, government officials, business leaders, the
university
community, and the media and
opinion‑makers[6].
- Even
when the purpose of the foreign influence is not to damage or destabilise
Australia, if left undisclosed it can impede the ability
of
decision‑makers in Australia, and the Australian public, to make informed
decisions because it can conceal the nature of
the competing interests at play.
The parties agree that transparency of foreign influence can contribute to the
effective functioning
and accountability of Australian government institutions
and help protect their integrity by reducing the risk that foreign influence
will result in foreign interests prevailing over domestic interests by ensuring
that the Australian public can assess the nature,
level and extent of foreign
influence in respect of particular decisions or processes
accurately[7].
The
FITS Act
- The
FITS Act was enacted as part of a package of legislative reforms alongside the
Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act
2018 (Cth) and the National Security Legislation Amendment (Espionage and
Foreign Interference) Act 2018 (Cth). As the name of the latter Act implies,
it is addressed to the risk of foreign interference.
- The
object of the FITS Act is stated in s 3 to be:
"to provide for
a scheme for the registration of persons who undertake certain activities on
behalf of foreign governments and other
foreign principals, in order to improve
the transparency of their activities on behalf of those foreign principals."
- A
"foreign principal" is defined by s 10 to mean:
"(a) a foreign
government;
(b) a foreign government related entity;
(c) a foreign political organisation;
(d) a foreign government related individual."
- Each
foreign principal is then further defined. Attention in this matter is focussed
on the entity in para (c), which is defined
by s 10 to include a foreign
organisation that exists primarily to pursue political objectives. It is
accepted that it applies to the ACU.
- Broadly
speaking and as relevant to the primary question before the Court the scheme of
the FITS Act may be understood to require a person to register details about
themselves and their foreign principal with the
Secretary[8] where the person
communicates or distributes information or material to the Australian public or
a section of it under an arrangement
with, in the service of or under the order
or direction of a foreign principal; where the person and the foreign principal
expect
that that activity will be undertaken; and where it is undertaken for the
sole or substantial purpose of political or governmental
influence, which
includes influencing the public.
Liability to register
- Part 2
of the FITS Act deals with registration under the scheme. Section 16(1)
("Requirement to register") provides that:
"(1) A person who:
(a) becomes liable to register under the scheme in relation to a foreign
principal; and
(b) is not already registered under the scheme in relation to the foreign
principal;
must apply to the Secretary for registration in relation to the foreign
principal, no later than 14 days after becoming liable."
"Person" is defined
widely[9].
- Section 16(2)
lists the requirements for an application, including that it be accompanied by
any information or documents required by the
Secretary[10].
- Section 18(1)
identifies the persons who are liable to register:
"(1) If a
person:
(a) undertakes an activity on behalf of a foreign principal that is
registrable in relation to the foreign principal; or
(b) enters a registrable arrangement with a foreign principal;
the person becomes liable to register under the scheme in
relation to the foreign principal."
- For
the purposes of s 18(1)(a), s 11(1) provides that a person "undertakes
an activity on behalf of a foreign principal"
if:
"(a) the person undertakes the activity in any of the following
circumstances:
(i) under an
arrangement[[11]] with the
foreign principal;
(ii) in the service of the foreign principal;
(iii) on the order or at the request of the foreign principal;
(iv) under the direction of the foreign principal; and
(b) at the time the arrangement or service is entered into, or the order,
request or direction made, both the person and the foreign
principal knew or
expected that:
(i) the person would or might undertake the activity; and
(ii) the person would or might do so in circumstances set out in
section 20, 21, 22 or 23 (whether or not the parties expressly considered
the existence of the scheme)."
It does not matter whether consideration is payable for the purposes of
s 11(1)[12].
- Section 18(1)(a)
directs attention to what is a "registrable activity". A "registrable
arrangement", referred to in s 18(1)(b), is defined by s 13A to be an
arrangement between a person and a foreign principal to undertake, on behalf of
the foreign principal, one or more activities
that, if undertaken by the person,
would be registrable in relation to the foreign principal in circumstances where
the person is
not exempt. The definition therefore also directs attention to
registrable activities.
Registrable activities
- The
definition of "registrable activity" in s 10 directs the reader to
ss 20 to 23 inclusive, which provisions also appear in Pt 2.
Section 20 concerns parliamentary lobbying on behalf of a foreign
government; ss 22 and 23 deal respectively with activities involving
"former Cabinet Ministers" and "recent designated position holders".
Section 21 concerns "activities in Australia for the purpose of political
or governmental influence".
- In
a table in s 21(1), four activities undertaken in Australia are listed
together with the kind of foreign principal on whose behalf the person acts in
connection with those activities. To be registrable an activity must be one
covered by an item of the table; the foreign principal
must be the kind of
foreign principal specified for the activity in the table; and the person who
undertakes the activity on behalf
of the foreign principal must not be exempt
under Div 4 in relation to the
activity[13]. Item 1 of
the table refers to the activity of parliamentary lobbying on behalf of a
foreign government related entity, a foreign
political organisation or a foreign
government related individual. Items 2 and 4 respectively refer to general
political lobbying
and disbursement activity with any kind of foreign principal.
Each of the activities listed in Items 1, 2 and 4 is further
defined[14]. The focus of the
plaintiff's case is on Item 3 of the table. It refers to "communications
activity" carried out on behalf of any
kind of foreign principal.
- A
person is said by s 13(1) to undertake "communications activity"
if:
"(a) the person communicates or distributes information or
material to the public or a section of the public; or
(b) the person produces information or material for the purpose of the
information or material being communicated or distributed to
the public or a
section of the public."
Information or material may take any
form[15].
- To
be registrable, each of the activities listed in the table in s 21(1),
including communications activity, must be carried out "for the purpose of
political or governmental influence". "Influence" includes
"affect in any
way"[16].
The
purpose of political or governmental influence
- Section 12(1)
provides that:
"A person undertakes an activity for the purpose of
political or governmental influence if the sole or primary
purpose, or a substantial purpose, of the activity is to influence one or more
of the following:
..."
- There
are seven processes or proceedings then listed in the sub-section. They include
those relating to a federal election, a federal
government decision, proceedings
of a House of the Parliament, a registered political party, a candidate who is
not endorsed by a
registered political party and a registered political
campaigner[17].
- Section 12(2)
provides that:
"A person also undertakes an activity for the
purposes of political or governmental influence if the sole or
primary purpose, or a substantial purpose, of the activity is to influence the
public, or a section of the public,
in relation to a process or proceedings
mentioned in subsection (1)."
- By
s 14, the purpose of an activity must be determined having regard
to:
"(a) the intention of the person undertaking the activity or
that person's belief (if any) about the intention of any foreign principal
on
whose behalf the activity is undertaken; and
(b) either or both of the following:
(i) the intention of any foreign principal on whose behalf the activity is
undertaken;
(ii) all of the circumstances in which the activity is undertaken."
Exemptions
- The
provisions of Pt 2, Div 4 render a person exempt from registration in
relation to certain activities that the person undertakes on behalf of a foreign
principal. They include humanitarian aid or
assistance[18]; the provision
of legal advice or
representation[19]; religious
activities[20]; registered
charities[21]; artistic
purposes[22]; and the
activities of members of certain
professions[23]. A person is
exempt in relation to diplomatic or consular
activities[24] and activities
undertaken in the person's capacity as an officer or employee of a foreign
government in the name of that foreign
government[25].
Responsibilities
following registration
- A
person is registered under the scheme from the day the application is given to
the Secretary until the registration
ends[26]. Provision is made
for ending registration where a person is satisfied, in effect, that they are no
longer required to
register[27].
- A
person who is registered under the FITS Act has certain responsibilities, which
are set out in Pt 3, Divs 2 and 3. The person is required to report
material changes in
circumstances[28]; report
disbursement activity for the purpose of political or governmental
influence[29]; review the
information given at registration and give notice that it is up to date or
update it when a voting
period[30] for federal
elections and referendums
begins[31]; and during the
voting period give the Secretary notice of any registrable activity undertaken
other than disbursement
activity[32]. A person who
remains liable to register must renew the registration
annually[33].
- Section 40(1)
requires a person who is registered under the scheme in relation to a foreign
principal to keep records whilst registered under the
scheme and for three years
after the registration ends. The matters in respect of which records must be
kept are registrable activities
undertaken by the person on behalf of the
foreign principal; benefits provided to the person by the foreign principal;
information
or material forming part of any communications activity that is
registrable; registrable arrangements between the person and the
foreign
principal; and other information or material communicated or distributed to the
public or a section of the public in Australia
on behalf of the foreign
principal[34].
Disclosure
in communications activity
- Although
s 38 ("Disclosure in communications activity") appears in Pt 3,
Div 3 ("Other responsibilities"), it places an obligation on any person,
not just a registered person, to make a disclosure about
the foreign principal
when undertaking communications activity on their behalf. It provides
that:
"(1) If:
(b) a person undertakes communications activity on behalf of a foreign
principal; and
(c) the communications activity is registrable in relation to the foreign
principal within the meaning of section 21 (activity in Australia for the
purpose of political or governmental influence);
the person must make a disclosure about the foreign principal in accordance
with rules made for the purposes of subsection (2).
(2) The rules[[35]] may
prescribe any or all of the following:
(a) instances of communications activity;
(b) when and how disclosures are to be made in relation to instances of
communications activity;
(c) the content, form and manner of disclosures;
(d) circumstances in which a person is exempt from making a disclosure."
- The
Foreign Influence Transparency Scheme (Disclosure in Communications Activity)
Rules 2018 (Cth) ("the Disclosure Rules") provide in a detailed way for the
form and manner of disclosure of different types of communications
activity. By
way of example, s 5(1) requires that printed material which is communicated
or distributed contain a disclosure at the
end or bottom of each page of the
printed material in a type size that can be easily read. Section 5(2)
prescribes the content of
the disclosure. It requires the person undertaking the
communications activity and the foreign principal to be identified, that a
statement that the communications activity is undertaken on behalf of the
foreign principal be included and that there be a statement
that the disclosure
is made under the FITS Act.
The register, the Secretary and
scheme information
- Part 4,
Div 2 of the FITS Act deals with the register of scheme information which
is required to be kept by the
Secretary[36]. The
information that is required to be kept on the register includes the name of the
person and the foreign principal, the application
for registration and any
accompanying information, any notices in the nature of reports given to the
Secretary, any information prescribed
by the rules and any other information the
Secretary considers
appropriate[37].
- The
Secretary is required to make available to the public, on a website, information
relating to a person who is registered in relation
to a foreign principal. That
information includes[38] the
name of the person and the foreign principal, a description of the kind of
registrable activities the person has undertaken or
is undertaking on behalf of
the foreign principal and any other information required to be made available by
rules. However, the
website is not to contain any information which the
Secretary is satisfied is commercially sensitive, affects national security or
is of a kind prescribed by the
rules[39]. The Secretary may
correct or update the information made
available[40]. Part 4,
Div 4 deals with how scheme information may otherwise be dealt with. It
assumes no relevance to the plaintiff's case.
- If
the Secretary reasonably suspects that a person might be liable to register
under the scheme but is not registered, the Secretary
may give a notice under
s 45 requiring the provision of information relevant to the person's
liability to register in relation to a foreign principal. Where the
Secretary
reasonably believes that a person whether registered or not has information or a
document that is relevant to the operation
of the scheme, the Secretary may give
a notice under s 46 requiring such information or documents, or production of
copies of such documents. There are requirements respecting the contents
of the
notice[41].
Offences and penalties
- Part 5
deals with enforcement and includes provisions creating offences arising from a
person's failure to register or to renew their registration
when liable to do
so[42]; giving notice that a
person's liability to register has ended while still liable to do
so[43]; and failing to fulfil
a person's responsibilities under the
scheme[44]. Offences of the
last kind may result in a penalty; those earlier mentioned may result in
imprisonment on conviction for terms ranging
between six months and five
years.
The questions on the Amended Special Case
- The
parties have agreed to state the following questions for the opinion of the Full
Court:
- Is
the Foreign Influence Transparency Scheme Act 2018 (Cth) invalid,
to the extent it imposes registration obligations with respect to communications
activities, on the ground that it
infringes the implied freedom of political
communication?
- In
light of the answer to question 1, what relief, if any, should issue?
- Who
should pay the costs of and incidental to this special case?
- Question 1
reflects a substantial narrowing of the plaintiff's case concerning the implied
freedom of political communication. Prior
to its amendment the question was
stated as whether the FITS Act is "invalid, either in whole or in part (and if
in part, to what extent)" on the ground that it infringes the freedom.
- The
relief sought by way of declaration, as relevant to question 2, has
correspondingly narrowed. The original declarations sought
were that the FITS
Act is wholly invalid or invalid so far as it purports to apply to foreign
political organisations or to the plaintiff; and in the alternative
that
s 45 and the offence provisions relating to it are invalid. The reference
to s 45 may be explained by an earlier controversy about the notice given
to the plaintiff by the Attorney‑General's Department requesting
information[45]. The
declaration now sought is "that the [FITS Act] is invalid, to the extent it
imposes registration obligations with respect to communications
activities".
- In
oral argument the plaintiff identified the objectionable feature of the FITS Act
as Item 3 of the table in s 21(1), which treats communications
activity as a registrable activity and in doing so engages ss 16 and 18 and
the requirement of registration. The primary question raised by the parties in
the Amended Special Case might be understood in
this way.
The
implied freedom, burdens and justification
- The
constitutional basis for the implication in the Constitution of a freedom
of communication on matters of politics and government is well
settled[46]. The freedom is
recognised as necessarily implied because the great underlying principle of the
Constitution is that citizens are to share equally in political
power[47] and because it is
only by a freedom to communicate on these matters that citizens may exercise a
free and informed choice as
electors[48]. It follows that
a free flow of communication is necessary to the maintenance of the system of
representative government for which
the Constitution
provides[49]. The freedom
operates as a constitutional restriction on legislative power and should not be
understood to be a personal
right[50].
- The
freedom is of such importance to representative government that any effective
statutory burden upon it must be
justified[51]. That process
commences with the identification of the purpose which the statute seeks to
achieve. That purpose must be legitimate,
which is to say compatible with the
constitutionally prescribed system of representative
government[52]. If the
statute does not have a legitimate purpose no further consideration will be
necessary, for invalidity will be made out.
- In
addition to having the requisite purpose, the law must be shown to be
proportionate to the achievement of that purpose. In order
to justify a
burdensome effect on the freedom a law must be a proportionate, which is to say
a rational, response to a perceived
mischief[53]. A law will
satisfy the requirements of proportionality if it is suitable, necessary and
adequate in its balance[54].
The parties' arguments on the Amended Special Case address these matters.
- The
plaintiff's submissions also address another question: whether the provisions of
the FITS Act are "reasonably appropriate and adapted". The submissions do so by
reference to the test of reasonable necessity, but not the other
tests of
proportionality, and a criterion of whether the provisions are "closely
tailored" to the achievement of the statutory purpose,
which criterion is not
further explained.
- In
Lange v Australian Broadcasting
Corporation[55], the
final question as to the validity of a law effecting a burden on the freedom was
stated to be whether the burden is "undue"
having regard to its
purpose[56]. Whether that
question should be determined by reference to a test of whether the law is
"reasonably appropriate and adapted" or
of whether it is "proportionate" was
left open by the Court, as were the means by which those conclusions might be
reached. But in
McCloy v New South
Wales[57] a majority of
this Court provided the answer, holding that the final question to be addressed
is whether a law is a proportionate
response to its purpose and that that is to
be ascertained by a structured method of proportionality analysis. That approach
has
consistently been maintained by a majority of this Court in each of the
cases concerning the implied freedom since
McCloy[58] and, more
recently, it has been applied by a majority to the freedom guaranteed by
s 92 of the
Constitution[59].
- The
plaintiff's submissions make mention of notions of strict scrutiny. It is said
that the present case is "a rare example of in terms regulation of
political communication, which is presumptively 'direct' or non-incidental in
its burden and so automatically attracts
stricter scrutiny". The error in that
statement, that the FITS Act regulates political communication, may be put to
one side. As New South Wales, intervening, submits, there has been no majority
support
in this Court for the proposition that there may be a class of laws that
under Australian constitutional law automatically attract
stricter scrutiny.
Although there has been some mention of the "strict scrutiny" doctrine in United
States constitutional jurisprudence,
it has never been accepted by a majority of
this Court as relevant to the implied
freedom[60].
- Before
turning to address the arguments advanced by the plaintiff in support of its
case, we note that the plaintiff did not seek
to advance an argument that the
Act was invalid as imposing on the plaintiff a form of "prior restraint" upon
the exercise by the plaintiff of a right of free speech.
In particular in that
regard, the plaintiff did not suggest that the Act operated as a regime for the
licensing of political communication. That the plaintiff eschewed any such
argument is hardly surprising.
The Act is not concerned to permit only
communications allowed by the government; rather it is concerned to ensure that
the identity of the
source of such political information as is disseminated on
behalf of foreign principals is known to the public and to government
decision‑makers.
The plaintiff's case
- The
plaintiff accepts that the ACU is a foreign principal for the purposes of the
FITS Act because it is a foreign corporation that is a foreign political
organisation. It acknowledges that the ACU exists primarily to pursue
political
objectives[61]. It is agreed
that, subject to the question of validity, the plaintiff has registration
obligations under the FITS Act because it undertakes registrable activities on
behalf of the ACU in the form of holding annual CPAC events which constitute
communications
activity. It follows that such events involve the communication
or distribution of information or material to the public or a section
of the
public in Australia for the purpose of political or governmental influence.
- The
plaintiff does not contend that the other activities itemised in the table in
s 21(1), aside from communications activity, are activities which might not
lawfully attract a requirement of registration. It does not contend
that
s 16 or s 18 ought not apply to lobbying and disbursements. It says that
the fact that a measure may be appropriate for those activities does
not mean it
is appropriate for all. Communications activities should warrant separate
treatment because they most clearly involve
communications on matters of
politics and government, which are the subject of the freedom.
- There
is no dispute that a purpose of the FITS Act is to promote transparency in
political discourse by requiring or facilitating disclosure of the relationship
between a person and
their foreign principal. There is no dispute that such a
purpose is a legitimate one in the sense referred to above. Essentially
the
plaintiff's case is that the requirement of registration cannot be justified
because it is not necessary. It is not necessary
because s 38 read with the
Disclosure Rules requires the disclosure of the relationship between the person
and the foreign principal at the time
a communication is made. Registration
therefore adds nothing to the achievement of the purpose of transparency. The
relevant provisions
of the FITS Act may be framed so that registration is not
required where communications activity is undertaken.
A burden
on the freedom
- The
defendant concedes that the FITS Act, in its requirement of registration where
communications activity is undertaken on behalf of a foreign principal, is
effective to
burden the freedom. The concession is properly made. Conditioning
political communication to a requirement of registration is effective
to burden
the freedom. That is sufficient to require that the relevant provisions of the
FITS Act be justified.
Purpose and legitimacy
- The
plaintiff identifies the purpose of the FITS Act as that referred to in
s 3, namely to render transparent the fact that activities in the nature of
political communication which are carried out by a person
in Australia are
undertaken on behalf of a foreign principal. The plaintiff submits that it is
thereby to be inferred that the concern
of the FITS Act is to overcome covert,
deceptive or clandestine conduct.
- Both
parties refer in this regard to what was said by the then Prime Minister, in the
Second Reading Speech for the National Security Legislation Amendment
(Espionage and Foreign Interference) Bill 2017 (Cth), concerning the three
Bills then before the Parliament. In that
Speech[62] the Prime Minister
said that the Bills being introduced were shaped by a set of principles one of
which was that "foreign influence
activities that are in any way covert,
coercive or corrupt" would not be tolerated. That, he said, is "the line that
separates legitimate
influence from unacceptable interference".
- The
Prime Minister went on to
say[63] that the Counter
Foreign Interference Strategy undertaken through the three pieces of legislation
has four pillars: sunlight, enforcement,
deterrence and capability. Of these, he
said, "sunlight is at the very centre". To "ensure activities are exposed to
sunlight" a
Foreign Influence Transparency Scheme was being introduced. In
essence it requires that if "a person or entity engages with the Australian
political landscape on behalf of a foreign state or principal then they must
register accordingly". This, the Prime Minister said,
"will give the Australian
public and decision-makers proper visibility when foreign states or individuals
may be seeking to influence
Australia's political processes and public debates".
The requirement of registration is not to be seen as a taint but rather the
application of "basic principles of disclosure to allow the public and
policymakers to assess any underlying
agenda"[64]. To similar
effect, in the Revised Explanatory
Memorandum[65] it is said
that it is essential that there is transparency where communications activity is
undertaken on behalf of a foreign principal.
This allows the public or a section
of the public or a government decision‑maker to assess the interests which
are being represented
by the person undertaking the communications
activity.
- The
mischief identified in the Second Reading Speech to which the FITS Act is
directed is the risk that foreign states and individuals may seek to influence
Australia's political processes and public debates.
This implies that the
influence sought to be achieved may have adverse effects on processes in our
democracy. The Revised Explanatory
Memorandum refers, in the context of
penalties for enforcement, to the "serious implications that unchecked and
unknown forms and
sources of foreign influence can have on Australia's
democratic system of
government"[66]. An improper
influence is most likely to succeed and amount to an interference in those
processes if its source remains undisclosed.
The purpose of the FITS Act, as the
defendant correctly submits, may be understood as being to seek to achieve
transparency, in the sense of the exposure of
foreign influence, as a means of
preventing or minimising the risk that foreign governments or other foreign
principals will exert
influence on the integrity of Australia's political or
electoral processes, as has occurred elsewhere.
- Long
ago this Court recognised the risk that greater influence over electoral
processes might be gained by concealment of the source
of expressions of view.
In Smith v Oldham[67],
a section of the Commonwealth Electoral Act 1902 (Cth), by which the
Commonwealth Parliament sought to regulate the conduct of persons with regard to
elections, was unsuccessfully
challenged. It required that after the writs for
an election or referendum had issued, any articles or reports commenting upon
candidates
or political parties were to be signed by the author, whose name and
address were also to appear in the article or report. Griffith
CJ observed
that "[i]t is a notorious fact that many persons rely upon others ... in forming
their opinions". The weight that they
attribute may be greater or less if they
know the real authors. He went on to say that "Parliament may, therefore, think
that no
one should be allowed by concealing his name to exercise a greater
influence"[68].
- A
requirement of registration in order to protect the processes of a
representative government in a democracy is not
new[69]. The importance of
that purpose has been recognised by the Foreign Agents Registration Act
of 1938 ("the US Act"), which provides that a person must not act as
an agent of a foreign principal without filing a registration statement
with the
Attorney General[70]. The
statement must include details about the registrant, the foreign principal, and
agreements between them, and a comprehensive
statement of the activities the
registrant performs on the foreign principal's behalf, money received from the
foreign principal
and money spent in connection with those activities. Agents
are required to provide supplementary information and to keep records,
and are
subject to disclosure requirements. The US Act provides for exemptions from
registration and for penalties by way of enforcement.
The constitutionality of
the US Act, in the context there of the right of freedom of expression, has been
regarded as well
settled[71].
- Even
on the plaintiff's somewhat narrower description of purpose, the FITS Act must
be understood as one supportive of the processes
necessary to our democracy. The
Act seeks to ensure that those making decisions in government, those making
political judgments,
those involved in the election of candidates to the
Commonwealth Parliament and other interested persons are aware of the true
actors
and interests concerned when statements are made or information is
provided on political matters. So understood, not only is that
purpose
legitimate, as consistent with the constitutionally prescribed system of
representative government, it serves to protect
it[72]. Such a purpose may be
a very important factor in the justification of a
law[73].
- It
should be noted here that, although the focus of argument in this Court was upon
political communication on behalf of a foreign
principal directed to the general
public, the defendant, rightly, identified a purpose of the Act as being to
minimise the risk of
undisclosed foreign influence upon the integrity of
governmental decision‑making. That the Act does indeed pursue such a
purpose
is clear from the terms of ss 12 and 21 of the Act as well as from
the extraneous materials referred to in these reasons. There can
be no doubt as
to the legitimacy of this purpose, or as to the suitability of the Act as a
rational response to the risk so identified.
As was said by Brennan J in
Australian Capital Television Pty Ltd v The
Commonwealth[74]:
"[T]he
salutary effect of freedom of political discussion on performance in public
office can be neutralized by covert influences".
The extent of the burden
- The
defendant correctly submits that whilst the extent of the burden effected by the
requirement of registration in connection with
communications activity is not
relevant to the threshold question as to whether justification is required, it
may assume some importance
when considering what has to be justified and the
questions to be addressed in that process. It most clearly assumes relevance to
the question whether a law is necessary in order to achieve its purpose and to
the question whether it is adequate in its balance,
where the burden effected is
considered in light of the importance of the purpose sought to be
achieved[75].
- It
is instructive to observe what political communication is not affected by the
relevant provisions of the FITS Act. As the defendant
points out, the Act does
not place any burden on a person in Australia engaging in political
communication on their own behalf, unaffected
by any relationship with a foreign
principal. To illustrate this point it may be observed that if the plaintiff had
not entered into
an arrangement with the ACU it could have conducted the CPAC
event without incurring an obligation to register.
- Foreign
governments and other foreign principals may also communicate ideas and
information to those in the Australian political
or governmental sphere or to
the Australian public without registering so long as the ideas and information
are communicated directly
by them. It is only if they are communicated through
an intermediary, which has the effect that the source of the ideas or
information
conveyed is disguised, that registration becomes necessary under the
FITS Act.
- Contrary
to the plaintiff's submissions, the FITS Act, in its provisions respecting
communications activity, does not operate directly
on political communication
and is not discriminatory. It does not prohibit political communication and does
not seek to regulate
its content. The FITS Act is directed to exposing the
relationship between the person making the communication and the foreign
source.
- In
its written submissions the plaintiff said that the definitions of "on behalf
of" and "arrangement" are over‑inclusive.
This terminology may suggest
that the FITS Act has a wide application. The principal factors which would
reduce its breadth are the
requirements of purpose and intention in
ss 12(1) and (2), 21(1) and 14. These matters need not be further explored.
The plaintiff
does not contend for invalidity on this basis. The point it seeks
to make by these observations is that the terms of the FITS Act
will be
productive of wide coverage, in support of its argument that registration is not
necessary.
- The
defendant concedes that conditioning political communication to a requirement of
registration effects some burden, but contends
that it is modest. The plaintiff
likewise submits that the requirement to register alone operates as some
disincentive to political
communication. It makes the not unimportant point that
registration is required with the government itself. But it goes too far in
suggesting that it will have a "chilling effect".
- The
plaintiff describes the process attending registration and its consequences as
"onerous" and therefore operating as a deterrent
to political communication. It
points to the information which must be supplied with an application to
register, the fact that the
Secretary may require further information, the
obligations which accrue from registration, such as updating the information
initially
provided and the requirement to keep records of communications
activity, and the additional obligation to disclose communications
activity
undertaken.
- The
plaintiff accepts that there are limits to what information the Secretary could
lawfully require under s 46. If the Secretary's
demands went beyond what is
reasonably required for the purpose of the FITS Act it might be expected that
challenges in the nature
of judicial review might be sought in the courts. For
present purposes the point to be made is that the requirement to provide
information
cannot be regarded as at large.
- It
is difficult to accept that the requirements to take particular steps following
registration are likely to be unduly onerous.
Several of them are similar to
what is required by other legislation. Part XX of the Commonwealth
Electoral Act 1918
(Cth)[76] requires a
Transparency Register to be maintained by the Electoral Commissioner. The Act
requires persons such as political campaigners
and associated entities to
register with the Commissioner and provide certain information and keep that
information up to date, in
order to support the object of transparency of
schemes in the Act relating to donations, electoral expenditure and the
authorisation
of electoral matter. Prior to 2018, when the provisions for the
Transparency Register were introduced, the Commonwealth Electoral
Act contained requirements for the registration of political parties and the
parties' agents and had done so since at least
1990[77]. It required the
provision of some information which is now contained in the Transparency
Register. The Lobbying of Government Officials Act 2011 (NSW) requires
third-party lobbyists to register with the New South Wales Electoral Commission,
which publishes the Register on a
website maintained by it. Third-party
lobbyists are required to keep information updated and their registration can be
suspended
or cancelled if it is
not[78].
- In
submitting that the provisions of the FITS Act requiring registration have a
deterrent effect on persons who might wish to engage
in political communication,
the plaintiff's submissions place some weight upon the criminal sanctions which
are imposed for breach.
True it is that criminal sanctions are imposed for
failure to register or renew registration or failure to fulfil the
responsibilities
of a registrant in order to deter non-compliance. But the
offences are not directed to the making of political communication; rather
they
are directed to ensuring that the exposure of the relationship between the maker
and the foreign principal is achieved.
- The
plaintiff takes no issue with the obligation imposed by s 38 to disclose
the fact of the relationship between the person communicating
information and
their foreign principal at the time the disclosure is made. The plaintiff's
answer to the question why this obligation
is an acceptable burden but that of
registration is not is that the disclosure obligation can be discharged easily
and involves no
ongoing obligations. That is to say the plaintiff's argument
respecting the burden effected by registration and the obligations which
follow
is essentially one of deterrence.
- It
may be accepted that the FITS Act's requirement of registration with respect to
communications activity may operate so as to deter
some persons from making
political communication. But in determining the extent of that burden it must be
borne in mind that there
will be a very small proportion of persons in Australia
who will be in that position. The only communication affected is that made
under
an arrangement with or at the direction of a foreign principal with the
intention that it be used for the purpose of political
or governmental
influence. The requirement will apply to only a small subset of political
communication. Even before one considers
the extent of the exemptions provided
for in the FITS Act, this leaves most political communication unaffected. Of the
limited category
of persons who are required to register under the Act, only a
small proportion could be expected to be deterred by the requirement
of
registration. The burden effected is likely to be modest.
- It
may be observed here that the implied freedom is engaged at all only as an
incident, albeit an indispensable incident, of the
system of representative
government established by the Constitution. It would be distinctly jejune
to insist that participation in the public affairs of the nation must not
involve a cost to one's
privacy or other individual
interests[79].
Proportionality
analysis
Suitability
- The
test of suitability requires that there be a rational connection between the
purpose of the statute in question and the measures
adopted by it to achieve
that purpose[80]. This is an
enquiry which logic
demands[81]. In this case the
purpose of minimising the risk of influence being exerted by foreign principals
on Australia's political or election
processes is sought to be achieved by
measures which seek to make transparent the identity of the foreign principal on
whose behalf
the person making the communication or providing information
intended to influence acts. Clearly, both disclosure by direct means
and making
publicly available the name of the person and their foreign principal through
the process of registration have the requisite
connection to the purpose of the
FITS Act.
- In
its written submissions the plaintiff correctly stated the test for suitability.
But it then contended that there is no rational
connection between the purpose
of the FITS Act and its situation because the arrangement between it and the ACU
was not covert or
clandestine; it has always been transparent. This is not a
correct approach to the question of suitability. Whilst the facts of a
particular case may illuminate aspects of the effect of a statute on the freedom
it is necessary to consider the effect on the freedom
as a whole in order to
determine the question of constitutional
invalidity[82]. The question
is not whether the FITS Act can be seen to have application to the plaintiff's
circumstances. It is whether there is
a rational connection between the
statutory purpose and the requirement of registration. Clearly there
is.
Necessity
- This
aspect of proportionality analysis involves the enquiry whether there is an
alternative measure available which is equally practicable
and at the same time
is less restrictive of the
freedom[83] and which is
obvious and compelling[84].
The test of reasonable necessity has consistently been applied in cases
involving the implied freedom and in cases concerning the
s 92 freedom,
where it has been held to be a doctrine of the
Court[85].
- The
alternatives the plaintiff points to in its submissions include adding to the
list of exemptions in Pt 2, Div 4 communications
that identify their connection
to a foreign principal at the time they are made; or amending the definition of
the types of relationships
with foreign principals that the FITS Act is
legitimately seeking to reveal. In reality these are merely methods of
re-drafting the
relevant provisions of the FITS Act so as to effect an exclusion
of the requirement of registration for communications activity from
s 21 in
order that ss 16 and 18 do not apply. The crux of the plaintiff's case is
that disclosure under s 38 and the Disclosure Rules
is sufficient for the
purpose of identifying the relationship between a person and their foreign
principal and the requirement of
registration adds nothing.
- More
commonly an alternative is identified by reference to a provision in another
statute or to a measure which could readily be
applied to the statutory scheme
in question. A difference in the plaintiff's approach to the test of reasonable
necessity from other
cases is that the plaintiff points to an existing provision
of the statute in question. It submits that nothing more than s 38 is
necessary to the scheme of the FITS Act to achieve its purpose. If it is true
that registration makes no real contribution to achieving
the FITS Act's
purpose, there seems no reason in logic why the plaintiff cannot contend that it
is not reasonably necessary.
- Section 38
and the Disclosure Rules cover many methods of communication. They include
television and radio broadcasting, social media
and printed mediums. In some
circumstances the disclosure will be to the public at large and in others it
will be only to a small
group of persons. The plaintiff's example is of the
latter kind. At a conference such as the CPAC event a disclosure will be made
by
a speaker only to those present unless the speaker's paper is subsequently
published more widely. Likewise, where a communication
is made on a social media
page which is restricted to a small group or in a newspaper in a foreign
language, the disclosure will
be limited.
- In
circumstances such as these, if what is conveyed by way of political
communication is further disseminated by those receiving
or reading the
communication the disclosure of the relationship between the person making it
and their foreign principal may not
be more widely published. Information or
opinions which might be influential may gain currency within political discourse
or public
debate without the source of the communication being revealed. This is
the very risk which the FITS Act seeks to prevent. Registration
enables both the
relationship between the person and their foreign principal and a description of
the political communication undertaken
by the person in that capacity to be
matters of public record.
- It
may also be said that, in the nature of things, those persons most interested
in, and capable of, subjecting to scrutiny the interests
of a foreign
participant in the political affairs of this country will be members of the
commentariat, such as journalists. The skill
and experience of the commentariat,
if brought to bear, can ensure effective disclosure of the nature and extent of
foreign interests
at play in the affairs of this country that might otherwise
remain undisclosed or dimly understood. The requirement of registration
established by the FITS Act allows the commentariat to be alerted to the
presence of foreign influencers in public affairs, and thus
enables public
debate to be informed in a way that would not be achieved by source disclosure
to the recipients of a particular communication
at the time of the
communication.
- Both
disclosure and registration are necessary for the achievement of the FITS Act's
purposes. To the contrary of registration being
unnecessary, disclosure under
s 38 is not enough. The plaintiff is speaking of a more limited obligation
than the FITS Act scheme
requires for its purposes.
Adequacy in
the balance
- Recently
it has been confirmed that a law is to be regarded as adequate in its balance
unless the benefit sought to be achieved by
the law is manifestly outweighed by
the adverse effect on the implied
freedom[86]. In this regard a
powerful public, protective purpose assumes a special
importance[87]. The FITS Act
clearly has such a purpose. The limited submissions made by the plaintiff on
this topic do not deny that the purpose
of the FITS Act is protective of
Australia's political and electoral processes. That important purpose cannot be
said to be outweighed
by a burden on the freedom which is
modest.
Questions not addressed
- These
reasons do not address questions as to whether the Secretary's power to require
information from a person, prior to or following
registration, extends to
information intended to be used for governmental purposes beyond those necessary
for the purposes of the
FITS Act. They do not address questions of this kind
because such questions do not arise from the Amended Special Case for the
opinion
of this Court.
- The
outer limits of the plaintiff's case, as detailed in these reasons, were
confirmed by the plaintiff on more than one occasion
during the hearing. The
plaintiff at no point sought to expand its case or to amend the Amended Special
Case by arguing that the
provisions of the FITS Act which permit information to
be required constitute overreach, are disproportionate on that account and
are
therefore invalid. The only point made by the plaintiff concerning the
Secretary's power under s 46 was that information‑gathering
might be
onerous. The arguments put by both parties proceeded upon the footing that the
Secretary's power is necessarily limited
to the purposes of the Act.
- A
case for invalidity premised on questions of the kind referred to above has not
been put to the parties for their considered response.
During the course of the
hearing the Solicitor‑General of the Commonwealth was asked whether
information might be collected
for executive purposes under the Secretary's
discretionary powers and not be made public. The Solicitor‑General
answered to
the effect that provisions which enable governmental use of
information do not change the purpose for which the information can be
gathered.
He did not concede that information might be required other than for the purpose
of ensuring the transparency of any relationship
between a person and their
foreign principal. If such information was provided, the Solicitor‑General
explained, it would be
incidental and it would be of narrow compass. The
Solicitor‑General was responding to an enquiry. He was not concerned to,
and did not, argue a case for the defendant in response to a case that the
defendant was required to meet. No such case was advanced
against the validity
of the Act. For its part, the plaintiff did not pursue the subject of the
enquiry.
- Questions
as to the Secretary's powers and the purposes served by these powers are large
questions. No basis for these questions
is to be found in the Amended Special
Case agreed by the parties. It is not contended that information of this kind
was sought from
the plaintiff for the purposes mentioned. If pressing for
answers to such questions could result in invalidity it would be necessary
to
consider other questions, such as whether the information was relevant to the
integrity of governmental decision-making, and,
if that question were answered
in the negative, further questions would arise, such as whether the application
of familiar techniques
such as severance, reading down or disapplying the
provisions affected might save them from invalidity. None of these matters were
adverted to, much less addressed, by the parties. It is certainly not to be
supposed that the defendant could not have advanced compelling
arguments in
relation to these matters.
- In
Lambert v
Weichelt[88],
Dixon CJ explained that "[i]t is not the practice of the Court to
investigate and decide constitutional questions unless there exists
a state of
facts which makes it necessary to decide such a question in order to do justice
in the given case and to determine the
rights of the parties". This approach has
been taken to mean that it is ordinarily inappropriate for the Court to be drawn
into a
consideration of whether a legislative provision would have an invalid
operation in circumstances which have not arisen and which
may never arise if
the provision, if invalid in that operation, would be severable and otherwise
valid[89]. The same applies
where a provision may be read
down[90]. For a
constitutional question to be decided by the Court it needs to be shown by the
special case "that there exists a state of
facts which makes it necessary for
that question to be
decided"[91]. That condition
is not met here.
Answers
- The
answers to the questions referred are then as follows:
- Is
the Foreign Influence Transparency Scheme Act 2018 (Cth) invalid, to the
extent it imposes registration obligations with respect to communications
activities, on the ground that it
infringes the implied freedom of political
communication?
Answer: No.
- In
light of the answer to question 1, what relief, if any, should
issue?
Answer: None.
- Who
should pay the costs of and incidental to this special
case?
Answer: The plaintiff should pay the defendant's costs.
- GAGELER J.
The compulsion to be registered under the Foreign Influence Transparency
Scheme Act 2018 (Cth) ("the FITS Act") as a precondition to engaging
in political communication with the public or a section of the public on behalf
of a foreign principal
is in my opinion incompatible with the constitutional
freedom of political communication. The incompatibility arises because the
scheme of registration established by the FITS Act has incidents which burden
political communication by a registrant to a substantially greater extent than
is necessary to achieve
the sole identified legislative object of improving
transparency.
- Repeated
elucidation of the constitutional freedom of political communication in recent
cases and thorough exposition of the scheme
of registration established by the
FITS Act in other reasons for judgment in this case permit me to express my
reasoning with minimal elaboration. My reasoning applies the precedent-mandated
Lange-Coleman-McCloy-Brown analysis of the compatibility of a law with
the constitutional freedom using an analytical approach I have adequately
explained in
the past[92] to
the application of the third stage of that analysis, which requires
consideration of whether a law burdening freedom of communication
in pursuit of
a legitimate purpose is reasonably appropriate and adapted to advance that
purpose in a manner compatible with the
maintenance of the constitutionally
prescribed system of government.
- Analytically
important from the start is to be categorical about the nature of the burden
that the compulsion to register imposes
on political communication. To be forced
under pain of criminal sanction to register under a statutory scheme as a
precondition to
being permitted to engage in a category of political
communication at all is to be subjected to a prior restraint on political
communication.
- "A
system of prior restraint is in many ways more inhibiting than a system of
subsequent punishment: It is likely to bring under
government scrutiny a far
wider range of expression; it shuts off communication before it takes
place"[93]. "If it can be
said that a threat of criminal or civil sanctions after publication 'chills'
speech, prior restraint 'freezes' it
at least for the
time."[94]
- Prior
restraint of political communication was understood in Australia even before
representative and responsible government to derogate
from an inherited common
law freedom which had been recognised in England after the expiration of the
licensing laws in 1695[95]
and taken to be established by the time Sir William Blackstone published the
fourth volume of his Commentaries on the Laws of England in
1769[96]. The common law
freedom was described variously as a "common right", a "constitutional right"
and a "constitutional privilege" by
Forbes CJ in reasons he gave in 1827
for refusing to certify[97]
that a legislative proposal by Governor Darling to license newspapers was
consistent with the laws of England so far as the circumstances
of the colony of
New South Wales would then
admit[98]. The lucidity and
present-day resonance of those reasons justify them being set out in full.
- Forbes
CJ wrote[99]:
"By
the laws of England[100],
the right of printing and publishing belongs of common right to all His
Majesty's subjects, and may be freely exercized like any
other lawful trade or
occupation. So far as it becomes an instrument of communicating intelligence and
expressing opinion, it is
considered a constitutional right, and is now too well
established to admit of question that it is one of the privileges of a British
subject. The text is comprehensively laid down by Mr Justice Blackstone as
follows: – 'The liberty of the press consists in
laying no previous
restraint upon publications, and not in freedom from censure for criminal
matter when published. Every free man has an undoubted right to lay what
sentiments he pleases before the public – to forbid this is to destroy the
freedom of the press.'
To subject the press to the restrictive power of a licenser, as was
formerly done, both before and since the revolution, is to subject all freedom
of sentiment to the prejudices of one man,
and to make him the arbitrary and
infallible judge of all controverted points in learning, religion and
government[101]. In
affirmance of this doctrine, the late Lord Ellenborough is reported, in a
celebrated case of libel, to have delivered himself
in these words – 'The
law of England is a law of liberty, and, consistently with this liberty, we have
not what is called an
imprimatur, there is no such preliminary license
necessary.'[102]
In a recent work, of which the great lawyer, whom I have just cited, was
pleased to express his approbation, the principle of the
law is stated in the
following terms: – 'There is nothing upon which Englishmen are justly more
sensible than upon whatever
has the appearance of affecting the liberty of the
press. But popular writers have certainly extended the notion of this liberty
beyond what in reason it will bear. They have converted it into a native, an
original, a primitive right, instead of considering
it only as a right
derivative and deductive from the joint rights of opinion and of speaking. This,
including an exemption from the control of a licenser, and all previous
restraint upon the mere suspicion of abuse, is the proper notion of the
liberty of the press.'[103]
It were unnecessary to multiply authorities; it is clear that the freedom of
the press is a constitutional right of the subject, and
that this freedom
essentially consists in an entire exemption from previous restraint; all the
statutes in force are in accordance
with this first principle of law; they
facilitate the means of proof; in certain cases, they encrease the measure of
punishment;
but in no instance do they impose any previous restraint either upon
the matter of publication or the person of the publisher. Indeed
to admit the
power of selection among publishers would be more repugnant to the spirit of the
law than to impose a direct imprimatur; it would be not merely to confine
the right of publishing within partial bounds, but it would be to establish a
monopoly in favor
of particular principles and opinions, to destroy the press as
the privilege of the subject, and to preserve it only as an instrument
of
government. 'The press', continues Blackstone, 'can never be used to any good
purpose, when under the control of an inspector.'
By the laws of England, then, every free man has the right of using the
common trade of printing and publishing newspapers; by the
proposed bill, this
right is confined to such persons only as the Governor may deem proper. By the
laws of England, the liberty of
the press is regarded as a constitutional
privilege, which liberty consists in exemption from previous restraint; by the
proposed
bill, a preliminary license is required, which is to destroy the
freedom of the press, and to place it at the discretion of the government."
- Forbes
CJ had earlier explained in official correspondence that the freedom of
political communication that existed at common law
even in a penal colony was
such that a prior restraint on publication "requires to be carefully examined".
"[I]f you take away the
freedom of public opinion upon matters of government",
he wrote, "you take away a legal right; necessity you will say justifies it;
then the limit of that justification is the necessity which compels it; it
should go no
further"[104].
- The
constitutionally entrenched freedom of political communication which came to be
recognised 165 years later in Australian Capital Television Pty Ltd v The
Commonwealth[105] and
Nationwide News Pty Ltd v
Wills[106] to derive
from the national system of representative and responsible government
established by the Constitution is a systemic structural imperative as
distinct from an individual right or privilege. That difference from the common
law freedom
of political communication expounded by Forbes CJ acknowledged,
application of the Lange-Coleman-McCloy-Brown analysis to a prior
restraint on political communication requires no lesser intensity of scrutiny
and demands no lesser standard of
justification than that identified by Forbes
CJ.
- To
be compatible with the constitutional freedom of political communication, a
prior restraint on political communication must withstand
what Gleeson CJ
referred to in Mulholland v Australian Electoral
Commission[107] as
"close scrutiny, congruent with a search for 'compelling justification'". To
meet that standard of compelling justification, the
restraint must satisfy two
conditions. The restraint must be imposed in pursuit of an object that is not
only consistent with the
constitutionally prescribed system of representative
and responsible government but also compelling. And the restraint must be
narrowly
tailored to achieve that object in a manner that minimally impairs
freedom of political communication. That is to say, the burden
on political
communication imposed by the restraint must not be substantially greater than is
reasonably necessary to achieve the
purpose.
- The
scheme of registration established by the FITS Act satisfies the first of those
conditions. It does not satisfy the second.
- The
object of the scheme of registration established by the FITS Act is limited to
that identified in the FITS Act. The sole object of the scheme of registration
there identified is to "improve the transparency" of activities undertaken on
behalf
of foreign
principals[108]. As
explained to the House of Representatives by the Attorney-General, the object is
to enable "the public and decision-makers in
government [to] have access to
information to enable them to accurately assess how foreign sources may be
seeking to influence Australia's
government and political
processes"[109].
- Neither
the FITS Act nor anything appearing in the record of the extensive process of
parliamentary deliberation which preceded its enactment indicates
that any part
of the object of the scheme of registration is to assist in monitoring or
enforcing compliance with measures introduced
by the contemporaneously enacted
Electoral Legislation Amendment (Electoral Funding and Disclosure
Reform) Act 2018 (Cth) or National Security Legislation
Amendment (Espionage and Foreign Interference) Act 2018 (Cth)
or any other Commonwealth, State or Territory legislation. The Solicitor-General
of the Commonwealth was careful to eschew
any argument that the object of the
scheme of registration established by the FITS Act has any additional element of
that nature.
- Of
"the four pillars of sunlight, enforcement, deterrence and capability"
identified by the Prime Minister as underpinning the
"counter-foreign-interference
strategy" implemented by the package of
legislation of which the FITS Act formed
part[110], the FITS Act is
therefore concerned exclusively with "sunlight". Use of that metaphor derives
from an essay written by Louis D Brandeis in 1913
entitled "What Publicity Can
Do". Brandeis commenced the
essay[111]:
"Publicity is justly commended as a remedy for social and
industrial diseases. Sunlight is said to be the best of disinfectants; electric
light the most efficient policeman."
Brandeis' additional metaphor of "electric light" was adapted by the
Committee on the Judiciary of the House of Representatives of
the United States
in explaining the design of the forerunner to the FITS Act, the Foreign
Agents Registration Act 1938 (US), as being to let "the spotlight of
pitiless publicity ... serve as a deterrent to the spread of pernicious
propaganda"[112].
- Pursuit
of the sole identified object of improving transparency of activities undertaken
on behalf of foreign principals by narrowly
tailored means undoubtedly justifies
creation of a system of registration under which a person wishing to engage in
political communication
with the public or a section of the public on behalf of
a foreign principal must first disclose on a public register information
relevant to enabling the public to appraise the political communication in light
of the relationship between the person and the foreign
principal. Undoubtedly,
it justifies requiring a registrant to provide information of that character to
the Secretary of the Attorney-General's
Department in order for that information
to be made available to the public on a website to be established and maintained
by the
Secretary.
- The
system of registration established by the Foreign Agents Registration
Act, under which registrants are required to furnish to the Attorney General
of the United States registration statements which become
public records open to
public examination and available to the public over the Internet, is a
longstanding legislative precedent.
- What
pursuit of that sole identified object of improving the transparency of
activities undertaken on behalf of foreign principals
by narrowly tailored means
does not justify is creation of a system of registration under which a person
who wishes to engage in
political communication with the public or a section of
the public on behalf of a foreign principal must first provide to the Secretary
of the Attorney-General's Department any information that the Secretary in his
or her discretion
requires[113], all of which
is to be kept on a register established and maintained by the
Secretary[114], only some
of which is to be made available to the public on a website to be established
and maintained by the
Secretary[115], but all of
which is to be available to be shared at the discretion of the Secretary with
any "enforcement body"[116]
for the purpose of any "enforcement related
activity"[117] within the
meaning of the Privacy Act 1988
(Cth)[118]; with any
Department, agency or authority of the Commonwealth, a State or a Territory or
any Australian police force for the purpose
of protecting public
revenue[119] or for the
purpose of protecting
"security"[120] within the
meaning of the Australian Security Intelligence Organisation Act 1979
(Cth)[121]; or with any
other person who might be prescribed in a legislative instrument made by the
Attorney-General under the FITS Act for any other purpose that might be
prescribed by that
instrument[122].
- Subjection
of a registrant to the requirement to provide that broader category of
information as an incident of registration is itself
a burden on the political
communication in respect of which registration is required. The burden lies in
the registrant being unable
to engage in the political communication at all
without the registrant needing first to submit to a requirement to divulge
privately
held information that is then available to be used for governmental
purposes adverse to the interests of the registrant and those
with whom the
registrant is politically affiliated. Important to recognise in that respect is
that information about a registrant
not publicly accessible would otherwise be
obtainable by the Commonwealth, State and Territory agencies and authorities
with whom
the Secretary is empowered to share it under the scheme only through
the exercise of covert or coercive powers conferred by other
Commonwealth, State
or Territory laws.
- Asked
in the course of argument to explain that added burden on political
communication arising as an incident of registration, the
Solicitor-General
sought to minimise its significance by arguing that the discretions conferred on
the Secretary are confined by
reference to the stated object of the FITS Act.
The discretion to require information from a registrant to be included on the
register, he argued, is to be exercised for the sole
purpose of promoting
transparency through publication of information from the register on the
website. The discretion to share information
from the register with the numerous
Commonwealth, State and Territory agencies and authorities with whom the
Secretary is empowered
to share it, he argued, is to be exercised only for the
purpose of sharing information of interest to those agencies and authorities
that might be captured incidentally in the process of gathering information for
the sole purpose of promoting transparency by means
of the publication of
information on the website.
- The
submission overstated the extent to which applicable principles of statutory
interpretation confine the discretions by reference
to the stated object of the
FITS Act.
- The
discretions are conferred on the Secretary against the background of the
principle that "[a] statute which confers a power to
obtain information for a
purpose defines, expressly or impliedly, the purpose for which the information
when obtained can be used
or disclosed" with the result that "[t]he statute
imposes on the person who obtains information in exercise of the power a duty
not
to disclose the information obtained except for that
purpose"[123]. The
statutory purposes for which information included on the register can be
disclosed in the discretion of the Secretary serve
to indicate the statutory
purposes for which information can be obtained in the discretion of the
Secretary for inclusion on the
register.
- Moreover,
the discretions are in terms unconfined. That being so, "the factors that may be
taken into account in [their] exercise
... are similarly unconfined, except in
so far as there may be found in the subject-matter, scope and purpose of the
statute some
implied limitation on the factors to which the decision-maker may
legitimately have
regard"[124]. The factors
to which the Secretary can have regard in exercising the discretions cannot be
confined by reference to the statutory
object of the scheme of registration
identified in the FITS Act to the exclusion of reference to the structure of the
scheme of registration of which the discretions form part.
- Notwithstanding
the limitation of its object to improvement of transparency, no part of the
design of the scheme of registration
established by the FITS Act is to confine
collection of information from registrants to that to be made publicly available
on the website. The discretion to
require information from registrants for
inclusion on the register is rather designed to facilitate each of the forms of
use and
disclosure of information included on the register for which the FITS
Act provides. Publication of information on the website is just one of them.
- The
architecture of the scheme in that respect is mapped out in the simplified
outline of the FITS Act in the statement that "[c]ertain information
about registrants and their activities is made publicly
available"[125]. The
architecture of the scheme is then detailed in the simplified outline of the
Part which governs "[o]btaining and handling scheme
information" in statements
that "[s]ome scheme information will be made publicly available" and that
"[o]ther scheme information must be handled in accordance with
[identified provisions specifically including those which authorise the
Secretary
to share information from the register with the numerous Commonwealth,
State and Territory agencies and authorities with whom the
Secretary has
discretion to share
it]"[126].
- Moving
beyond the simplified outlines to the detail of the operative provisions, there
is a marked contrast between the unconfined
discretion of the Secretary to
require information from registrants and the precisely defined obligation of the
Secretary to publish
a subset of that information on the website. Apart from the
name of the registrant and the foreign principal and a description of
the kind
of registrable activities the registrant undertakes on behalf of the foreign
principal, the information to be published
on the website is limited to that
prescribed by legislative instrument made by the
Attorney-General[127].
Publication of the whole of the prescribed information is mandatory subject only
to exceptions for information that the Secretary
is satisfied is commercially
sensitive, affects national security or is excepted by legislative instrument
made by the
Attorney-General[128].
- The
contrast between the precisely defined obligation of the Secretary to publish a
subset of the information from the register on
the website and the discretions
of the Secretary both to collect information from registrants to be included on
the register and
to share information from the register with Commonwealth, State
and Territory agencies and authorities highlights that the fundamental
problem
with the scheme is not that the discretions to collect and share information are
overbroad but that they exist at all. The
problem that arises from the existence
of the discretions is not one that might or might not occur in the
administration of the scheme,
consideration of which can be deferred until if
and when it does
arise[129]. The problem is
inherent in the structure of the scheme to which every registrant is immediately
subjected: to attempt to remove
the problem by reading down the scope of the
discretions so as to minimise the disconnect between the information on the
secret register
and the information on the publicly accessible website would be
to engage in the legislative process of designing a new
scheme[130].
- Put
bluntly, the scheme of registration established by the FITS Act is not fit for
purpose. A scheme of registration narrowly tailored to improve transparency of
political communication undertaken
on behalf of foreign principals with the
public or sections of the public in a manner that minimally impaired freedom of
political
communication would have no place for a secret register at all. The
information to be required from registrants and the information
to be made
available to the public would be one and the same and would be defined by
legislative prescription. There would be no
occasion for the discretionary
collection and discretionary dissemination of information for other governmental
purposes.
- By
subjecting a registrant to the requirement to provide information to be included
on a secret register to be available to be shared
with Commonwealth, State and
Territory agencies and authorities, the scheme of registration established by
the FITS Act burdens political communication by a registrant with the public or
a section of the public to a substantially greater extent than
is necessary to
achieve the sole identified legislative object of improving the transparency of
that communication. For that reason,
the compulsion to be registered under the
scheme in order to engage in political communication with the public or a
section of the
public on behalf of a foreign principal is not compatible with
the constitutional freedom of political communication.
- Doing
my best to express that incompatibility in the language of structured
proportionality, I would not shrink from saying that
the scheme of registration
established by the FITS Act is not
"suitable"[131] for the
reason that there is no rational connection between the object of improving
transparency and the subjection of a registrant
to the requirement to provide
information to be included on the register that is not to be published but that
is to be available
to be shared with Commonwealth, State and Territory agencies
and authorities. If that is too strong, I would still say that the scheme
is not
"necessary"[132] for the
reason that an obvious and compelling reasonably practicable alternative means
of achieving the object of improving transparency
is not to subject a registrant
to that requirement at all. At the very least, I would say that the scheme is
not "adequate in its
balance"[133] for the
reason that the burden it places on political communication by subjecting a
registrant to that requirement contributes nothing
to the achievement of the
benefit of improved transparency sought to be achieved.
- The
conclusion that the compulsion to be registered under the scheme of registration
established by the FITS Act is incompatible with the constitutional freedom of
political communication in its application to a person who seeks to engage in
political communication with the public or a section of the public on behalf of
a foreign principal does not necessarily entail the
conclusion that the
compulsion to be registered is incompatible with the constitutional freedom in
its application to a person who
seeks to engage on behalf of a foreign principal
in other registrable activities within the scope of the scheme. There is a
difference
between a requirement to register as a precondition to engaging in
political communication with the public or a section of the public
and a
requirement to register as a precondition to representing the interests of
another in dealings with legislative and executive
arms of
government[134].
Conformably with the implied freedom's centrally informing concern to protect
the integrity of the processes of representative and
responsible government, the
permissible incidents of a scheme of registration directed to persons
representing others in dealing
with
government[135] can be
expected to be more burdensome in practice than the permissible incidents of a
scheme of registration directed to persons
engaging in political communication
with the public.
- My
formal answers to the questions reserved by the special case are as follows. (1)
In their application to a person who undertakes,
or arranges to undertake, on
behalf of a foreign principal an activity made registrable by Item 3 of the
table in s 21(1), ss 16 and 18 of the FITS Act infringe the implied freedom of
political communication and are for that reason invalid. (2) The plaintiff
should have a declaration
to that effect. (3) The defendant should pay the costs
of and incidental to the special case.
- GORDON J.
The Foreign Influence Transparency Scheme Act 2018 (Cth)
("the FITS Act") was one of three
measures[136] enacted by
the Federal Parliament as part of a "Counter Foreign Interference Strategy"
which was "built upon the four pillars of
sunlight, enforcement, deterrence and
capability"[137].
"Sunlight" was said to be at the "very centre" of that
strategy[138]. The FITS
Act was introduced to provide for "a scheme for the registration of
persons who undertake certain activities on behalf of foreign governments
and
other foreign principals, in order to improve the transparency of their
activities on behalf of those foreign
principals"[139]
to ensure such activities are "exposed to
sunlight"[140].
- The
plaintiff, LibertyWorks Inc, is "a private think-tank with an aim to move public
policy in the direction of increased individual
rights and freedoms, including
the promotion of freedom of speech and political communication". Subject to
validity, the parties
agree that LibertyWorks is required to register under
the FITS Act because it is a person who engages in a "registrable
activity": namely, it undertakes, on behalf of a foreign principal
(the American
Conservative Union ("the ACU"), which is a foreign political
organisation because it is a foreign organisation that exists primarily
to
pursue political objectives), communications activity in Australia for the
purpose of political or governmental
influence[141].
The registrable activity is holding annual Conservative Political Action
Conference ("CPAC") events in Australia. LibertyWorks relevantly
organised and
co-hosted the 2019 CPAC event under an arrangement with the ACU or otherwise
entered into a registrable arrangement
with the ACU.
- LibertyWorks
challenges the validity of specific
provisions[142] of the
FITS Act as infringing the implied freedom of political
communication in their application to "communications activity", which is just
one of the "registrable activities" under the FITS
Act[143] ("the
impugned provisions"). LibertyWorks does not challenge the application of the
impugned provisions to any of the other "registrable
activities"[144]. The
relief sought by LibertyWorks in its Further Amended Statement of Claim and the
question of law stated for the opinion of the
Full Court each reveal that
LibertyWorks' challenge is to the validity of the FITS Act to the extent
it imposes registration obligations with respect to "communications activity".
LibertyWorks identified the aspects of
the FITS Act –
the impugned provisions – which it contends are invalid. It
identified the "targets" of its challenge as ss 16 and 18
(the requirement to register), in their operation in respect of s 21(1),
table item 3. In that way, LibertyWorks confined its challenge to the
operation of the FITS Act with respect to registrable "communications
activity" (except for s 38), and not the other kinds of
"registrable activities". LibertyWorks, however, was not simply concerned
with the requirement to "register", but with the things that
"registration brings
with it", including ongoing record‑keeping
obligations, obligations to provide information and documents to the government
and the criminal consequences for non‑compliance. The deterrent effects of
an obligation to register with respect to "communications
activity" cannot be
understood without reference to the aspects of the scheme to which registrants
and persons liable to register
are made subject by the FITS Act.
- As
with any question of constitutional validity, the first step must always be to
construe the Act and determine its legal effect
and practical
operation[145].
It is necessary to begin with the proper construction and application
of the impugned provisions within the scheme and framework
of the FITS
Act[146].
"[T]he impugned provisions cannot be read in
isolation"[147] and the
Court is not confined to choosing between competing constructions advanced by
the parties[148].
Determining the legal effect and practical operation of the FITS Act in
its application to LibertyWorks is not to "roam at
large"[149]. LibertyWorks
does not seek to challenge the operation of provisions of the FITS Act
"in circumstances which have not arisen and may never
arise"[150].
- The
impugned provisions in their application to "communications activity" are
intended to, and do, regulate political communications
of the broadest kind
between members of the public and with political representatives. The impugned
provisions place a significant
burden on political communications, which
requires a compelling justification.
- The purpose
of the FITS Act identified by the Commonwealth – to minimise the
risk of foreign principals exerting undisclosed influence upon the
integrity of Australia's political or election processes –
is legitimate. No other or wider purpose was said to be
pursued.
- Where,
however, a person, like LibertyWorks, "undertakes" a "communications
activity" on behalf of a "foreign principal", such as
a foreign political
organisation, for the purpose of "political or governmental influence",
the impugned provisions are not tailored
to the identified purpose of the
FITS Act and are not justified.
- As
will be seen, the FITS Act contemplates that the Secretary of the
Attorney-General's Department ("the Secretary") will gather, in a range of
ways[151], an extensive
amount of "scheme
information"[152] that
relates to persons who may be liable to register and registrants or that is more
broadly relevant to the operation of the scheme.
The overreach of the
impugned provisions is best illustrated by the fact that the FITS Act
creates two repositories of that "scheme information": one is a
"register" kept by the Secretary, which is not made
public[153]; the other is a
publicly accessible
website[154]. What is not
made public cannot "improve the
transparency"[155] of
activities on behalf of a foreign principal. The gap between the two
repositories is not justified and cannot be bridged.
- It
was not suggested that the disconformity between the register and the public
website could be solved by severing the information
gathering provisions which
yield the register. The gap is not bridged by significantly reading down the
information gathering provisions.
They are not provisions that can be given some
limited distributive
operation[156]. Any reading
down which would be necessary is to the point that the information gathered
would only be of a kind that would appear
on the public website. That is not
what the FITS Act says or
does[157]. The FITS Act
enables the Secretary to obtain information which is stored on a register
and not made public, but which may relevantly be provided
by the Secretary
to law enforcement
bodies[158]. That is, as
LibertyWorks submitted, a significant deterrent. And a non‑public register
does nothing to minimise the risk of
undisclosed influence. It does the
opposite. A non‑public register is in darkness, not sunlight. As
LibertyWorks submitted, the acquisition of information
that is not made public
does "nothing for ... the sunshine purpose of the [FITS Act]".
The public website, with its prescribed contents, on the other hand is
directed at the identified legitimate purpose of minimising
the risk of foreign
principals exerting undisclosed influence upon the integrity of
Australia's political or election processes and is justified. It discloses
the fact of the influence, how the
influence is effected and by whom and
through whom. The gathering of other scheme information and storing of it
on a non-public register
does not.
Implied freedom of political
communication
- Sections
7, 24 and 128 of the Constitution (with Ch II, including ss 62 and 64)
create a system of representative and responsible government. The implied
freedom of political communication is "an indispensable
incident of the system
of representative and responsible government ... because that system requires
that electors be able to exercise
a free and informed choice when
choosing their representatives, and, for them to be able to do so, there must be
a free flow of political communication within
the
federation"[159] (emphasis
added).
- There
is no doubt that the implied freedom protects political communication
"undertaken legitimately to influence others to a political
viewpoint"[160]
(emphasis added). This includes communications between elected
representatives and electors, and "between all persons, groups and
other
bodies in the
community"[161]. As Mason
CJ has
explained[162]:
"That
is because individual judgment, whether that of the elector,
the representative or the candidate, on so many issues turns upon
free
public discussion ... of the views of all interested persons, groups and bodies
and on public participation in, and access to,
that discussion. In truth,
in a representative democracy, public participation in political
discussion is a central element of the
political process."
- Moreover,
the range of "communications" protected by the implied freedom is
broad[163]. The freedom
protects discussion of matters that "might bear on the choice that the
people have to make in federal elections or in voting to amend the Constitution,
and on their evaluation of the performance of federal Ministers and their
departments"[164] (emphasis
added). This includes communications "made to the public on a government or
political matter"[165] and
communications "in relation to public affairs and political
discussion"[166]. It
encompasses communications "on the wide range of matters that may call for,
or are relevant to, political action or decision",
criticism of "government
decisions and actions", and communications which "seek to bring about
change" or "call for action where
none has been taken and in this way influence
the elected
representatives"[167].
- Whether
the impugned provisions are invalid for impermissibly burdening the implied
freedom falls to be assessed by reference to
the following
questions[168]: (1) Do
the impugned provisions effectively burden the freedom of political
communication? (2) Is the purpose of the FITS Act legitimate, in the
sense that it is consistent with the maintenance of the constitutionally
prescribed system of government? (3) Are
the impugned provisions reasonably
appropriate and adapted to advance that legitimate purpose in a manner
consistent with the maintenance
of the constitutionally prescribed system of
government?
The FITS Act
- The
question whether a statute burdens the implied freedom is answered by reference
to the terms, legal effect and practical operation
of the
statute[169]. It is not
answered by deciding whether a statute "limits the freedom on the facts of a
particular case"[170];
the focus is on the effect on the implied freedom
"generally"[171].
- A
statute will "effectively burden" the implied freedom if "the effect of the
law is to prohibit, or put some limitation on, the
making or the content of
political
communications"[172]. The
level of justification required depends on the nature and extent of the burden
imposed[173]. In the
present case, the nature and extent of the burden, not whether the impugned
provisions burdened the implied freedom, was
in issue. In order to explain
the nature and extent of the burden it is necessary to give detailed
consideration to the relevant
provisions of the FITS Act.
Registrable activities and registration
- As
has been noted, the FITS Act provides for "a scheme for the
registration of persons who undertake certain [registrable]
activities on behalf of foreign governments and other
foreign principals, in order to improve the transparency of their
activities on behalf of those foreign
principals"[174] (emphasis
added).
- Broadly,
the "scheme"[175] comprises
distinct but interconnected mechanisms: a requirement for persons to register
when engaged in one of the "registrable
activities"[176]; a
"register" of information obtained in relation to the scheme maintained by the
Secretary that is not publicly
available[177] and a
separate publicly accessible website containing specified information about
registrants[178];
disclosure obligations in respect of registrable communications activities,
irrespective of
registration[179]; the
imposition of responsibilities on
registrants[180];
and penalties for
non‑compliance[181].
- A
person "undertak[ing] an activity on behalf of a foreign
principal"[182]
lies at the core of the operation of the FITS Act.
"[P]erson" is defined broadly to include individuals, bodies corporate,
bodies politic, partnerships, associations, organisations,
and any combination
of individuals who together constitute a
body[183]. This would
include "think-tanks" (like LibertyWorks), public interest groups, academic
institutions, media organisations and individual
citizens alike.
- The
breadth of the legal effect and practical operation of the FITS Act
arises in two ways: first, the phrases "undertakes an activity on behalf of"
and "foreign principal" are broadly defined and, second,
the scheme's
mechanisms are broad in nature and effect. Those statements require explanation.
"[F]oreign principal"[184]
is broadly defined to mean a "foreign government", a "foreign
government related entity", a "foreign political organisation"
and
a "foreign government related
individual"[185]. In this
way, the term "foreign principal" not only captures foreign governments and
foreign political parties and individuals or
corporations related to them, it
also extends to "a foreign organisation that exists primarily to pursue
political objectives"[186].
By definition, a foreign organisation that exists primarily to pursue
political objectives does not have to have any connection
to a foreign
government or a foreign political party. The political objectives pursued by
such an organisation need not be linked
in any way to a foreign government.
Indeed, what is "political" is
undefined[187].
- Next,
irrespective of whether consideration is
payable[188],
"[a] person undertakes an activity on behalf of a foreign
principal
if"[189]:
"(a)
the person undertakes the activity in any of the following circumstances:
(i) under an arrangement with the foreign principal;
(ii) in the service of the foreign principal;
(iii) on the order or at the request of the foreign principal;
(iv) under the direction of the foreign principal; and
(b) at the time the arrangement or service is entered into, or the order,
request or direction made, both the person and the foreign
principal knew or
expected that:
(i) the person would or might undertake the activity; and
(ii) the person would or might do so in circumstances set out in section 20,
21, 22 or 23 (whether or not the parties expressly considered the existence of
the scheme)." (emphasis added)
- The
phrases "in the service of", "on the order or at the request of"
and "under the direction of" are self‑explanatory. They
seek to
address where a person is acting as what might loosely be described as an
"agent" of a foreign principal. But what of the
first identified connection
– acting "under an arrangement"? "[A]rrangement" is
defined[190] to include "a
contract, agreement, understanding or other arrangement of any kind, whether
written or unwritten". The activities
undertaken "on behalf of" a foreign
principal as defined in the FITS Act therefore extend well beyond any
ordinary understanding of an agency or employment relationship. The consequence
is that activities
of a collaborative kind that are instigated or principally
pursued by the person liable to register (not just those undertaken at
the behest or direction of a foreign principal) are captured by the scheme.
- It
is then necessary to address registration under the scheme. Section 18 of the
FITS Act identifies the persons who are liable to
register[191]. It provides
that a person is liable to register in relation to a foreign principal if the
person undertakes a registrable activity
on behalf of a foreign principal or
enters a
"registrable arrangement"[192]
with a foreign principal. Under s 16(1), once a person has become liable to
register they "must apply to the Secretary for registration" within 14
days[193] (emphasis added).
A knowing or reckless failure to do so is an
offence[194].
- A
registration application must be "in writing", "in an approved form
(if any)", "given in an approved manner (if any)" and "accompanied
by any
information or documents required by the
Secretary"[195]. No
"approved form" or "approved manner" of making an application for the
purpose of s 16(2) is presently prescribed.
The Attorney‑General's Department has published a "factsheet" setting
out the "information and documents
that must be provided" by persons
registering under the
scheme[196].
The documentation is extensive in nature and subject matter. Once an
application is made that complies with the requirements in
s 16(2), the
person is "registered" under the
scheme[197] and is a
"registrant"[198].
- What
is a "registrable activity" is addressed in ss 20 to 23. For present
purposes, it is sufficient to focus on just one of the registrable
activities identified in s 21(1), namely "[c]ommunications activity"
undertaken in Australia "for the purpose of political or governmental
influence"[199]. In respect
of this registrable activity, a person's liability to register arises from
the fact that the person has engaged, or proposes to engage, in political
communication. A person relevantly undertakes a "communications activity" if
they communicate or distribute "information or material to the public or
a section of the public" or produce "information or material for the purpose of
the information or material being
communicated or distributed to the public or a
section of the public"[200]
(emphasis added) and the sole or primary purpose, or a substantial
purpose, of the communications activity is to "affect in any
way"[201], among other
things[202],
"a process in relation to a federal
election"[203], "a process
in relation to a federal government
decision"[204] or "the
public, or a section of the public, in relation to" such a
process[205].
- Three
aspects of the breadth of "communications activity" should be noted. First, a
"federal government
decision"[206] includes a
decision of any kind in relation to any matter, including
administrative, legislative and policy matters, whether or not the decision is
final or formal[207].
Second, "information or material" includes "information or material in
any form, including oral, visual, graphic, written, electronic, digital and
pictorial forms"[208]
(emphasis added) and would include, among other things, verbal or silent
protests, media campaigns and academic work. Third, the
"purpose of an
activity"[209] is
determined by reference
to[210]:
"the intention of the person undertaking the activity or that person's
belief (if any) about the intention of any foreign principal
on whose
behalf the activity is undertaken",
and[211]:
"either or both of the following:
(i) the intention of any foreign principal on whose behalf the activity
is undertaken;
(ii) all of the circumstances in which the activity is undertaken."
(emphasis added)
As is self‑evident, these provisions regulate political communications
of the broadest kind between members of the public.
Disclosure and record keeping
- Among
other
responsibilities[212],
persons liable to register and registrants must disclose certain information and
documents to the Secretary.
Initial registration[213]
and annual renewal[214]
applications must be "accompanied by any information or documents required by
the Secretary". Registrants have an ongoing obligation
to give "a notice"
to the Secretary if they become aware that information provided to the Secretary
"is, or will become, inaccurate
or misleading in a material particular" or
"omits, or will omit, any matter or thing without which the information is or
will be
misleading"[215].
The notice must correct the inaccuracy or misleading
impression[216] and it must
be "accompanied by any information or documents required by the
Secretary"[217]. Additional
disclosure obligations arise at the beginning of, and during, certain voting
periods[218].
- Registrants
are also obliged to keep certain records for up to
ten years[219] about:
registrable activities the person undertakes; benefits provided to the person by
the foreign principal; information or material
forming part of any
registrable communications activity; any registrable arrangement; and "other
information or material communicated
or distributed to the public or a section
of the public" on behalf of the foreign
principal[220].
- The
Secretary may compel a person to produce any "information" or "documents"
that may satisfy the Secretary as to whether the person
is liable to register if
the Secretary "reasonably suspects" the person might be liable to
register[221].
The Secretary also may compel a person (irrespective of whether they are a
registrant) to produce any "information" or "documents"
if the Secretary
"reasonably believes" the person has information or documents "relevant to the
operation of the
scheme"[222].
- Failure
to give a notice required under Div 2 of Pt 3, failure to keep records as
required under s 40, or failure to comply with a notice issued under
s 45 or s 46 is an
offence[223].
Disclosure
in communications activity
- A
person who undertakes a registrable communications activity on behalf of a
foreign principal (whether or not the person is a registrant)
"must make a
disclosure about the foreign principal in accordance with rules made for
the purposes of" s 38(2) of the
FITS Act[224]
(emphasis added). In other words, a person must disclose the fact
of a relevant relationship with a foreign principal within a registrable
communications activity. Failure to do so is an
offence[225].
- The
Foreign Influence Transparency Scheme (Disclosure in Communications Activity)
Rules 2018 (Cth) ("the Disclosure Rules") relevantly prescribe
the disclosure required for the purposes of s 38(2) of the
FITS Act. Section 5(1) of the Disclosure Rules prescribes
certain "instances of communications activity" (for example, and among
others, communication or distribution of printed
material, streaming music,
broadcasting by radio or television or oral communication made in person) and
identifies the form and
manner of disclosure required for each instance of
communications activity (for example, at the end or bottom of each page of
printed
material in a type size that can be read by a person with 20/20 vision
without visual aid, in an announcement at the end of the
communication,
or at the beginning of an oral communication in person). Section
5(2) prescribes that the content of the disclosure (except for radio
advertisements and authorised political material) must: "identify the person
undertaking the communications activity"; "identify
the foreign principal on
whose behalf the person undertakes the communications activity"; "include a
statement that the communications
activity is undertaken on behalf of the
foreign principal"; and "include a statement that the disclosure is made under
the [FITS Act]". It provides that the disclosure could be worded
along the following lines:
"This material is communicated by [name
of person] on behalf of [name of foreign principal]. This disclosure is made
under the [FITS Act]."
Scheme information
- Division 4
of Pt 4 of the FITS Act addresses communicating and dealing with
scheme information. "Scheme
information"[226],
relevantly, is information obtained by a scheme official in the course of
performing functions or exercising powers under the scheme.
The Secretary,
among others, is a "scheme
official"[227].
A scheme official may communicate or otherwise deal with scheme information
for the purposes of performing functions or exercising
powers under the scheme
or otherwise in the course of performing their functions in relation to the
scheme[228]. However, the
FITS Act provides that the Secretary may communicate scheme information
for specified purposes, including to an "enforcement body"
for the
purpose of "an enforcement related activity" within the
meaning of the Privacy Act 1988
(Cth)[229] or to any
Department, agency or authority of the Commonwealth, a State or a
Territory, or an Australian police force for the protection
of "security" within
the meaning of the Australian Security Intelligence Organisation Act 1979
(Cth)[230].
- Ordinarily
"when a power to require disclosure of information is conferred for a particular
purpose, the extent of dissemination
or use of the information disclosed must
itself be limited by the purpose for which the power was
conferred"[231].
As the Commonwealth accepted, however, the additional specified purposes in
s 53 of the FITS Act expressly define "a wider set of purposes for
which the information may [lawfully] be disseminated".
Non-public
register
- Section
42(1) requires the Secretary to keep a "register" of information
"in relation to the scheme". Section 42(2) and (3) specify what the
Secretary must include on the register. The register "must" include, in
relation to each
registrant[232]:
the name of the person and the foreign principal; the registration
application, any renewal application and any notices given by
the person under
Div 2 of Pt 3[233], along
with any "information or documents" that accompanied such an application or
notice; a record of any other communications between
the person and the
Secretary; any information prescribed by rules made for the purposes of
s 43(1)(c); and "any other information or documents the Secretary
considers appropriate" (emphasis added). The register "must" also
include[234]: any
provisional and final transparency notices and any variations and revocations of
transparency notices; any notices given under
s 45 or s 46 to a person
other than a registrant "and any responses received"; any information prescribed
by rules made for the purposes of s 43(1)(c) other than in relation to
registrants; and "any other information or documents the Secretary
considers appropriate" (emphasis added). What is on the register is not publicly
available. What is on the register
is any document or information the Secretary
(or any other scheme official) gathers pursuant to, or for the
purposes of, the FITS Act.
Public website – certain
scheme information must be made publicly available
- The
public website is a subset of the non-public register. Section 43(1) prescribes
that the following information "must" be made publicly
available[235],
on a website, in relation to each person who is, or has at any time been,
registered in relation to a foreign
principal[236]: "the name
of the person and the foreign principal"; "a description of the kind of
registrable activities the person undertakes or
undertook on behalf of the
foreign principal"; and "any other information prescribed by the rules for
the purposes of" s 43(1)(c).
- Section
6 of the Foreign Influence Transparency Scheme Rules 2018 (Cth) ("the
FITS Rules") prescribes that for the purposes of s 43(1)(c) in
relation to each registrant the following information about the person and the
foreign principal is to be made publicly available on the website:
any trading name and ABN (or foreign equivalent) of the person
and the
foreign principal[237]; any
other name by which the person is
known[238]; if they
are individuals, the person's occupation, any other names by which the foreign
principal is known and the foreign principal's
title[239]; if the person
is a former Cabinet Minister or recent designated position holder, that
fact[240]; and the name of
the country that the foreign principal is part of or related to and the type of
foreign
principal[241].
- Information
about the registrable activities is also to be made publicly available,
including a description of the registrable activities
and the date or period
over which they are to be, or were,
undertaken[242]; whether
the registrable activities are undertaken "under an arrangement with", "in the
service of", "on the order or at the request
of" or "under the direction of" the
foreign principal[243];
and a description of the arrangement, order, request or direction or a
description of the relationship of
"service"[244].
The
gap – two repositories of scheme information
- It
is necessary to say something further about the two repositories of scheme
information and the gap that exists between them. As
has been seen,
the FITS Act contemplates: (a) a non‑public
"register" containing a wide range of information and documents obtained by the
Secretary and
scheme officials in the course of administering the scheme
(namely, the gamut of "scheme information") and (b) a separate,
publicly
accessible "website" containing a far more limited class of scheme
information.
- It
is evident from the text of the FITS Act and the FITS Rules that
the "register" and "website" are separate and do not mirror each other. There
are separate provisions dealing with information
and documents to be included on
the register[245] and
information to be made publicly
available[246].
Unlike certain other Commonwealth Acts, the register maintained by the
Secretary under the FITS Act is not itself made publicly
available, either in its
entirety[247] or subject to
removing information that is commercially
sensitive[248] or otherwise
prejudicial by way of a carveout from the register itself.
- The
public website contains a more limited class of information and documents. The
simplified outline of Pt 4 in s 41 states that "[s]ome scheme
information will be made publicly available (mainly, the names of
registrants, former registrants and foreign principals and descriptions of the
registrable activities being undertaken)",
and that "[o]ther scheme
information" must be handled in accordance with the Privacy Act, Pt
5.6 of the Criminal Code (Cth) and the authorisations in Div 4 of Pt
4 of the FITS Act (emphasis added). Consistent with the simplified
outline, s 43 is headed "Certain information to be made
publicly available" (emphasis added).
- Next,
the types of information and documents that must be made publicly available are
identified with precision in s 43(1)(a)-(b) and (2A) of the FITS Act
and s 6 of the FITS Rules. That specificity may be contrasted with
the generality of language used to identify the information and documents that
must be placed
on the register, the starkest illustration of which is that the
Secretary must include on the register "any ... information or documents the
Secretary considers appropriate" that are not otherwise specifically
identified in s 42(2) and
(3)[249] (emphasis added).
There is no equivalent provision in relation to the public website.
- Relatedly,
s 42(2) and (3) specifically require that the following
documents[250],
among others, must be included on the non‑public
register[251]: applications
for registration and renewal of registration with any accompanying information
and documents, notices given to the
Secretary with any accompanying information
and documents, notices given by the Secretary requiring information and
documents and
any responses to such notices (presumably including the
information and documents provided), and any correspondence between the
Secretary
and the person (for example, by email or letter). By contrast, there
is no indication in the FITS Act or the FITS Rules that any
of those documents will be uploaded onto the public website. What is to
be contained on the public website is limited to specified types of
"information"
identified in s 43(1)(a) and (b) of the FITS Act and
s 6 of the FITS
Rules[252].
- The
publicly available information and documents constitute a subset of the
categories of information and documents identified in
s 42 that must be put
on the register. The "name of the person and the foreign
principal"[253],
provisional and final transparency notices and any variations and revocations of
transparency notices[254],
and any information "prescribed by the rules for the purposes of"
s 43(1)(c)[255] are
expressly identified as information and documents that must be contained on
both the register and website. The only other category of information
that must be put on the website is a description of the registrable
activities[256].
The overlap between the register and what is made publicly available ends
there.
- There
is no statutory basis for the Secretary to make information or documents
publicly available other than those referred to in
s 43(1)(a)-(b) and (2A)
of the FITS Act and prescribed by the FITS Rules for the purposes
of s 43(1)(c). There is no provision providing that the Secretary
may place information or documents on the public website, for example, if
the Secretary considers it appropriate to do so or considers the
information relevant to the
scheme[257].
The FITS Act only expressly confers obligations on the Secretary in
respect of (a) information that the Secretary "must make" publicly
available[258]
and (b) information that, despite falling within s 43(1), "must
not" be made publicly
available[259].
Degree of disconnect between register and website
- The
disconnect between repositories of non-public and publicly available information
under the FITS Act is not found in the Foreign Agents Registration
Act 22 USC §§611-621 ("the FARA"), the Act on
which the FITS Act was
based[260]. Under the
FARA, essentially all information and documents provided by registrants
are made publicly
available[261]. The
Attorney General must retain "in permanent form one copy of all
registration statements furnished" under the FARA, "and the same shall be
public records and open to public examination and
inspection"[262].
The Attorney General must "maintain, and make available to the public
over the Internet, without a fee or other access charge ...
an electronic
database that": includes the information contained in registration statements
and updates given under the FARA; and is searchable and sortable, at
least by the categories of information that registrants are required to include
in their registration
statements under
§612(a)[263].
The Attorney General must make each registration statement and update
available over the Internet "as soon as technically practicable
after" it is
filed[264]. In addition,
copies of any informational materials distributed on behalf of a foreign
principal that are provided to the Attorney
General pursuant to §614(a)
"shall be available for public
inspection"[265] –
that is, informational materials that must contain an "[i]dentification
statement"[266] within the
materials akin to the disclosure required by s 38 of the FITS Act.
- In
response to the fact that the FARA is in different terms,
the Commonwealth sought to characterise the disconnect between the FITS
Act register and public website as "narrow", particularly on the basis that
the gap would depend on the scope of the Secretary's powers
to lawfully
compel information and documents under ss 16(2)(d) and 39(2)(d). While
this is a factor that will contribute to the degree of
disconnect[267], it is not
the only relevant factor. Although it is not possible to identify the precise
degree of disconnect, evidently the disconnect
is not illusory.
- The
nature of the information and documents provided both by registrants and by
other members of the public either voluntarily or
in response to what would be
an ordinary and lawful exercise of power by the Secretary may result in a
significant divergence between
the register and the public website.
The following examples illustrate this point.
- First,
pursuant to s 16(2)(d), the Secretary may ask a person who wishes to lodge
a registration application to provide "any information or documents" that would
assist the Secretary to understand the nature of the relationship between the
person and the foreign principal. The person may (but
need not necessarily)
respond by providing extensive information and documents about the relationship
(such as contemporaneous records
of meetings between the person and the foreign
principal, financial transactions, and correspondence between the person
and the foreign
principal) simply because they wish to make it apparent why the
relationship is legitimate. Every supporting document provided must
be placed on
the register[268], but only
the particular information falling within s 43(1) of the FITS Act
and s 6 of the FITS Rules would be placed on the website
(namely, specific information about the person and the foreign principal and
information about the
registrable activities).
- Second,
the Revised Explanatory Memorandum to the Foreign Influence Transparency
Scheme Bill 2017 (Cth) explained that s 42(3)(c) (which requires that
any other information or documents that the Secretary considers appropriate
be
included on the register) was intended to apply to information or documents that
"are relevant to the scheme's management and
administration"[269].
It gives the following example of the kind of information that may be
relevant:
"Person A ... emails the Secretary to provide information
about Person B, who Person A suspects is undertaking registrable activities
on
behalf of foreign principal X. If, upon investigation, scheme officials
conclude that Person B may be required to register under
the scheme, and Person
B does so and information is made available on the register relating to Person
B's application, the Secretary
may consider it appropriate to also include the
email from Person A on the register, subject to privacy considerations."
The original email from Person A was not in response to a notice issued by
the Secretary compelling information or documents. It does
not, therefore,
raise any question about the Secretary's powers to lawfully compel information.
It would be placed on the register
if the Secretary considered it "appropriate"
to do so[270],
but there would not appear to be any basis for placing it on the public
website.
- Third,
the Secretary may issue a notice under s 46 of the FITS Act
compelling a registrant to produce any "information" or "documents" that they
are required to keep records of pursuant to s 40 on the basis that the
Secretary "reasonably believes" the person has entered into a new registrable
arrangement with the foreign
principal. In response to the notice, the person
may provide a range of information and documents to establish why proposed
activities
fall within an existing arrangement in respect of which the person is
registered, including detailed information about "benefits
provided to the
person by the foreign principal", material forming part of a registrable
communications activity, and the registrable
arrangement[271]. The
registrant's response could be included on the register either as "a record of"
communications between the person and the Secretary
or as "other information or
documents the Secretary considers
appropriate"[272]. There
would not appear to be any basis for placing the response on the public website,
although it may be necessary to "correct
or update" information on the website
having regard to information in the
response[273].
- Fourth,
as the Commonwealth acknowledged, certain of the information sought from
LibertyWorks in a notice issued to it pursuant to
s 45 of the FITS
Act would not appear on the public website.
- It
is not necessary for present purposes to determine the extent to which it might
be possible to narrow or eliminate the gap between
the public website and
non-public register by making rules for the purposes of s 43(1)(c)
prescribing that all (or the vast majority) of the information and documents
that must be on the register must be made publicly available.
The FITS
Rules as currently in force simply do not do that and a large degree of
disconnect presently exists.
- A
real question remains, however, whether rules requiring that information of such
breadth be made publicly available would be valid
under s 71(1) of the
FITS Act as either "required or permitted by" s 43(1)(c) or
"necessary or convenient to be prescribed for carrying out or giving effect to"
the FITS Act. Regulations or rules made pursuant to a statute may not
"vary or depart from the positive provisions made by" the authorising statute
or
"go outside the field of operation which the Act marks out for
itself"[274]. It would be
surprising if it were possible to make rules that could effectively circumvent
Parliament's evident intent, reflected
in the text of the FITS Act, to
create two separate repositories of scheme information, with the publicly
available information being of a more limited kind.
Burden
- The
legal and practical operation of the impugned provisions in respect of
registrable communications activity undertaken on behalf
of a foreign principal
effects a substantial burden on the implied freedom of political
communication[275].
- It
is important to recall that the impugned provisions are not limited to
circumstances where a person is acting as an agent for,
in the service of,
on the order or at the request of, or under the direction of a foreign
government, a foreign government related
entity or a foreign government
related individual. The impugned provisions apply to a person who has an
arrangement with a foreign
organisation that exists primarily to pursue
political objectives. And the legal effect and practical operation of the
impugned provisions
focusses on persons connected with a foreign principal who
want to communicate about political matters whether or not the views to
be
expressed by the registrant are aligned with the views or interests of the
foreign principal.
- The
requirement to disclose the fact of a relationship with a foreign principal
within a registrable communications
activity[276] is a direct
regulation of political
speech[277]. Although the
disclosure requirement is content
neutral[278],
as it "applies evenhandedly to advocates of differing viewpoints, it
is a direct regulation of the content of
speech"[279], because every
registrable communications activity must contain prescribed information about
the relationship between the person
and the foreign principal.
- But
the FITS Act goes further – there is burden upon burden.
The Commonwealth acknowledged that the effect of s 57 of the FITS
Act is that "certain persons cannot lawfully engage in certain types
of political communication if they knowingly or recklessly fail to register"
(emphasis added). But the burden is
even more significant. The provisions
of the FITS Act – the registration
obligations[280];
the associated obligations to provide information and documents to the
Secretary and to keep
records[281]; the criminal
consequences for failing to register or comply with
obligations[282]; the gap
between the scheme information made publicly
available[283] and the
scheme information kept on the non‑public register maintained by the
Secretary[284]; and the
possibility that information obtained under the scheme may be communicated to
law enforcement bodies[285]
– are likely, in practice, to have significant deterrent effects on a
person who would otherwise engage in legitimate and lawful
political
communication[286]. The
potential to deter general political discussion between ordinary members of the
public is real. This is not a new concern. In
McIntyre v Ohio Elections
Commission[287], the
Supreme Court of the United States expressed concern about the deterrent effects
of a law requiring the identification of information
about a person who
distributed campaign literature because the provisions applied "not only to
the activities of candidates and their
organized supporters, but also to
individuals acting independently and using only their own modest resources".
- It
is not just a burden on political communication, but a burden imposed
before a person communicates. In this sense, the FITS Act
imposes what might be described as a prior
restraint[288] on
"communications activity". The operation of the impugned provisions in respect
of registrable "communications activity" is apt
to result, in practice, in an
immediate "freeze" on political
communications[289],
"prevent[ing] speech from ever
occurring"[290]. Although
the FITS Act does not impose a "legal sanction" on engaging in political
communication, the burden is significant or severe because "[t]he finger
of
government leveled against" registrants "is ominous"; "the spectre of a
government agent will look over the shoulder" of those
who register under the
scheme[291].
- The
present case is illustrative of the breadth of the
burden[292]. The Secretary
issued a notice under s 45 of the FITS Act requiring LibertyWorks to
provide, among other things, documents that would plainly identify the names of
participants, and speakers,
at the CPAC Australia event. Such a disclosure
could discourage persons from participating in political discussion out of fear
that
their political views (especially if controversial) may be made public, or
conveyed to law enforcement bodies, and have consequences
for
them[293]. It may be
inferred from the facts of the amended special case that the issuing of a
s 45 notice to LibertyWorks resulted in a reluctance on the part of members
of the Australian community to speak at and attend the CPAC
Australia event (and
therefore participate in legitimate political communication).
The Commonwealth submitted that the possibility
that disclosure of the
identities of persons who are planning to speak at a CPAC Australia event would
deter their participation
is irrelevant because "the whole point of the
transparency regime is to reveal the[se] kinds of connections between people and
foreign
political actors". That submission does not address the fact that the
persons who may be dissuaded from engaging in political communication
include
persons whom the FITS Act is not intended to regulate –
namely, participants who are not registrants or liable to register.
- It
is true that the burden applies to a "subset" of political communication,
insofar as the principal burden is on political communication
undertaken
"on behalf of" a foreign principal (not communications undertaken purely by
a person on their own behalf or communications
made directly by a foreign
principal). However, as Deane and Toohey JJ observed in Australian Capital
Television Pty Ltd v The
Commonwealth[294], "the
fact that the number of groups or individuals who might wish to express their
political views in a particular way is limited,
does not suffice to justify a
law suppressing the freedom of communication in that particular way".
Nettle J similarly observed in
McCloy v New South
Wales[295] that "[i]t
would be wrong to conclude ... that, just because [impugned] provisions
affect only a small section of the electorate,
they can have only a small effect
on the implied freedom".
- The
impugned provisions effect a substantial burden on general
"public discussion ... of the views of all interested persons, groups
and
bodies and ... public participation in, and access to, that discussion" –
matters which are fundamental to our system of
government[296]. In their
operation in relation to registrable communications activity, the impugned
provisions regulate general political discussion
of the broadest kind between
members of the public (as well as to political representatives) and are
likely, in practice, to have
significant deterrent effects on persons who
would otherwise engage in legitimate and lawful political communication. A
burden of
this kind requires a compelling
justification[297].
Legitimate purpose
- To
answer the second question – whether the purpose of the FITS Act is
legitimate – it is necessary to identify the "true purpose" of the statute
by "ordinary processes of
construction"[298],
having regard to "the text, the context and, if relevant, the history of
the law"[299]. The purpose
is "not what the law does in its terms but what the law is designed to achieve
in fact"[300]. It should be
identified at a higher level of generality than the meaning of the words of the
provisions, focussing instead on the
"mischief" to which the provisions are
directed[301].
- A
"legitimate purpose" is one which is "compatible with the system of
representative and responsible government established by the
Constitution"[302],
in the sense that it "does not impede the functioning of that system
and all that it
entails"[303]. As has been
observed, the Commonwealth accepted that the purpose of the
FITS Act is to minimise the risk of foreign principals exerting
undisclosed influence upon the integrity of Australia's political or
election processes. That purpose is not only compatible with the system of
representative
and responsible government, it also seeks to preserve and enhance
that system[304].
The legitimacy of the purpose is supported by the materials in the amended
special case, which make clear that undisclosed foreign influence can
impede the ability of the Australian public and decision-makers to make informed
decisions because it can deny
those persons proper visibility over what
interests are being advanced and by whom. But, as explained, the impugned
provisions go
well beyond the legitimate purpose of the FITS
Act.
Impugned provisions impermissibly burden the implied
freedom
- LibertyWorks'
challenge to definitions within ss 10, 11, 12, 13, 13A and 14 of the
FITS Act should be rejected. Generally speaking, and subject to contrary
intent, definitions within an Act do not enact "substantive"
law[305]. In other words,
they are not provisions with any operative effect; they simply provide an aid to
the construction of the substantive
provisions in an Act. No contrary
intent may be discerned from the FITS Act. Consequently, the impugned
definitional provisions (albeit central to the operation of the FITS
Act) may only be challenged to the extent that they contribute to invalidity
of the operative provisions and, even then, they may only
be challenged insofar
as they are relevant to the application of those provisions to
LibertyWorks[306]. It is
necessary to address the validity of the operative impugned provisions.
- Parliament
can, consistently with the implied freedom of political communication, require
the "registration" of certain persons who
seek to influence political processes
as an intermediary for a foreign principal and require that such persons
disclose, in their
political communications, that they are acting on behalf of a
foreign principal. However, Parliament's ability to regulate such persons
is
subject to limits.
- Where
a person, like LibertyWorks, "undertakes" "communications activity" on behalf of
a foreign principal for the purpose of political
or governmental influence, the
impugned provisions are not tailored to achieve the legitimate end of minimising
the risk of foreign
principals exerting undisclosed influence upon the
integrity of Australia's political or election processes. The impugned
provisions overreach and are not justified.
- The
gap between the information disclosed by a registrant who has engaged in, or
proposes to engage in, a registrable "communications
activity" which is made
publicly available on the website, and the information and documents disclosed
by a registrant but kept on
the non‑public register maintained by the
Secretary (and which may be made available to law enforcement bodies),
cannot be
explained. As LibertyWorks submitted, the acquisition of information
that is not made public does "nothing for ... the sunshine purpose
of the
[FITS Act]". The scheme information kept on the non-public
register is not directed at, and cannot be directed at, the identified
legitimate
purpose. Although the disconnect between the non-public register and
the public website required explanation, no "'substantial relation'
between the governmental interest and the information required to be
disclosed"[307] but not
made public was
identified[308],
let alone established, by the Commonwealth. No other, wider purpose than to
minimise the risk of foreign principals exerting undisclosed influence
upon the integrity of Australia's political or election processes was said by
the Commonwealth to be pursued. To the extent the Commonwealth suggested
that the "detail" regarding the difference between the non-public register and
the public
website is not relevant to the constitutional question in this case,
that must be rejected. The question is whether the FITS Act can validly
impose this registration regime in pursuit of the identified legitimate
purpose. It cannot.
- A non‑public
register does nothing to minimise the risk of undisclosed influence. It
does the opposite. A non‑public register is in darkness, not
sunlight. Put in different terms, there is no rational connection
between
the non‑public information stored on the register and the purpose of the
FITS Act – minimising the risk of foreign principals
exerting undisclosed influence upon the integrity of Australia's
political or election processes.
- And,
to that extent at least, the impugned provisions are unnecessary.
The FITS Act contains within it two sets of provisions which are
directed at the stated purpose and achieve the stated objective. First,
registration,
accompanied by the creation of a public website with
prescribed contents, is directed at the identified legitimate purpose of
minimising
the risk of foreign principals exerting undisclosed influence
upon the integrity of Australia's political or election processes and is
justified. It discloses the fact of the influence, how the
influence is
effected and by whom and through whom. The gathering of scheme information
and storing it on a non-public register does
not.
Second, the requirement, irrespective of
registration, to disclose a connection to a foreign principal in each
prescribed communication
is directed at the identified legitimate purpose and is
justified.
- The
disconnect – the gap – between the two repositories of scheme
information, and its consequences, cannot be justified
in relation to
registrable "communications activity". To that extent, at least, the
impugned provisions overreach any legitimate
purpose and are not necessary.
The impugned provisions are invalid in their operation with respect to
registrable "communications
activity". The FITS Act is invalid to the
extent that "communications activity" is a registrable activity within
s 21(1), table item 3, on the basis that it infringes the implied freedom
of political communication. The requirement, irrespective of registration,
to disclose a connection to a foreign principal in a communications
activity is directed at the identified legitimate purpose and
is justified. As
the Commonwealth submitted, s 38(1)(c) should be read and
construed[309] to mean
"the communications activity is in Australia and is for the purpose of
political or governmental influence".
Answers
- For
those reasons, the questions stated for the opinion of the Full Court in the
amended special case should be answered as follows:
- Is
the [FITS Act] invalid, to the extent it imposes registration obligations
with respect to communication[s] activities, on the ground that it
infringes
the implied freedom of political communication?
Answer: Yes, the FITS Act is invalid to the
extent that "communications activity" is a registrable activity within
s 21(1), table item 3, on the basis that it infringes the implied freedom
of political communication.
Section 38(1)(c) should be read and construed to mean
"the communications activity is in Australia and is for the purpose of
political or governmental
influence".
- In
light of the answer[] to question 1, what relief, if any, should
issue?
Answer: Unnecessary to answer.
- Who
should pay the costs of and incidental to this special case?
Answer:
The defendant.
EDELMAN J.
Introduction
- In
this special case, the plaintiff, LibertyWorks Inc, challenged part of the
Foreign Influence Transparency Scheme Act 2018 (Cth) ("the FITS
Act"). Its challenge, as it repeatedly confirmed in oral submissions, was
limited to the operation of the FITS Act upon "communications activity",
being a registrable activity as specified in item 3 of the table in
s 21(1). That item, together with associated provisions in the FITS Act,
regulates communications activity that is undertaken in Australia "on behalf of"
a foreign principal for the purpose of political
or governmental influence. The
regulation involves a suite of obligations on those who undertake such
communications activities,
including registration obligations prior to the
proposed communication, ongoing reporting obligations, disclosure obligations at
the time of communication, record keeping obligations, and renewal of
registration obligations.
- The
background and relevant legislative provisions are described in detail in other
judgments. I agree with the conclusions of Kiefel
CJ, Keane and
Gleeson JJ, with their Honours' reasons concerning the legitimacy of the
purpose of the FITS Act, and with their use of structured proportionality as the
test for validity. However, I take a different approach to the burden imposed
by
the FITS Act upon political communication.
- In
my view, although the burden imposed by the communications activity provision,
being item 3 of the table in s 21(1), and its associated provisions is
not excessive it is still a substantial burden upon political communication. It
can be accepted
that the class of persons who are exposed to the burden is
limited to those having a particular connection with a foreign principal.
But
that class is not as narrow as persons who are genuine agents of a foreign
principal. And within that class of persons, the burden
is deep. The
communications activity upon which the FITS Act focuses is defined in broad
terms. It targets the speakers as well as their speech. The effect of the FITS
Act upon political communication is not merely incidental: it focuses
specifically upon communication for the purpose of political or
governmental
influence. It operates as a constraint prior to communication, at the time of
communication, and after communication
by requiring disclosure of a variety of
information which can be provided to numerous revenue and law enforcement
authorities. It
requires records to be kept for up to ten years.
- During
oral argument, the Court raised with the parties two particular respects in
which provisions of the FITS Act might arguably impose a burden upon
political communication beyond that which is justified. The first of those
respects is those provisions
concerned with communications made "on behalf of" a
foreign principal[310]
extending beyond communications as an agent or representative of the foreign
principal. The second is those provisions that require
information to be
provided to the Secretary of the Attorney‑General's Department ("the
Secretary") for the purposes of registration
and which empower the Secretary to
put the information on a public website and disclose any of it to a range of
authorities[311].
LibertyWorks had not sought, and did not seek, to challenge any of these
provisions directly. Many of them were not even challenged
indirectly. As senior
counsel for LibertyWorks said on at least four occasions in oral submissions,
the provisions that were challenged
indirectly were only challenged in their
operation in respect of registrable communications
activity[312]. Hence, no
submissions were made concerning whether the scheme, in these two particular
respects, was suitable, reasonably necessary,
or adequate in the balance.
- If
LibertyWorks had brought a direct challenge to any provisions other than the
communications activity provision then it would likely
have been met by a
response from the Commonwealth that s 15A of the Acts Interpretation Act
1901 (Cth) would permit reading down
of[313], or severance of
part of[314], the meaning
of those provisions, or that those open‑textured
provisions[315] could be
disapplied in their operation to the extent of the invalidity that would
otherwise arise. In the absence of such challenge,
all provisions other than the
communications activity provision fall to be considered only as part of the
consideration of the interpretation
and operation of the communications activity
provision, to assess whether the associated burden on political communication
can be
justified.
- For
the reasons below, the communications activity provision is at the core of the
Act. It is a provision with a legitimate purpose
that is a matter of the highest
government policy. Although the communications activity provision, and
associated provisions, impose
a substantial burden on political communication,
that burden is justified. The provisions regulating registrable communications
activity
are suitable, reasonably necessary, and adequate in the
balance.
Structured proportionality analysis
- The
parties and the interveners proceeded upon the now accepted approach for
analysing whether legislative provisions are incompatible
with the freedom of
political communication that is implied from the text and structure of the
Constitution. In a compelling recent dissection of arguments against
structured proportionality, it was observed by reference to its
(arguably[316]) German
origins that "one is left with a lingering sense that proportionality is
disliked because it is
foreign"[317]. The
modern acceptance of multi‑jurisdictional, interconnected learning means
that we no longer see the world through eyes
with which "[w]e are so
self‑satisfied with our own customs" that "we cannot bring ourselves to
believe it possible that a
foreigner should in any respect be wiser than
ourselves"[318].
- In
contrast with a vague, ad hoc application which purports directly to apply the
triple uncertainty in the phrase "reasonably appropriate
and adapted", a
structured proportionality analysis provides a transparent manner in which to
determine whether a law which burdens
political communication for some
legitimate purpose has contravened the implied freedom of political
communication. Structured proportionality
sets out three tests which such a law
must meet in order for its burden upon political communication to be justified:
(i) suitability;
(ii) reasonable necessity; and (iii) adequacy in
the balance. Each of the three tests reflects the roots of the freedom of
political
communication as an implication derived as a matter of necessity from
the text and structure of the Constitution: "[t]he nature and extent of
the freedom is governed by the necessity which requires
it"[319]. If the three
tests were thought to be incomplete, no coherent fourth test has ever been
enunciated, nor a need for it explained,
by any critic of proportionality. Nor
has it been explained why flexibility is needed: (i) to permit any law
which fails one of the
three tests nevertheless to be valid; or (ii) to
invalidate any law despite its burden on political communication being suitable,
reasonably necessary, and adequate in the balance. There remains flexibility
within each test and scope for development of the factors
that will influence
the application of it.
- The
nature and extent of the freedom cannot be determined independently of the
representative democracy considerations that underpin
the very reason for the
implication. Each stage of structured proportionality is therefore shaped so as
to be consistent with those
considerations. As to the first stage,
"suitability", a provision will rarely fail for lacking rational connection with
the legitimate
purpose of Parliament for the obvious reason that Parliament's
purpose is itself ascertained and derived in part from the expected
operation of
the provision. Unless the provision is truly arbitrary, serving no purpose at
all, a conclusion that a provision has
no rational connection with its
legitimate purpose – ie that the means employed are incapable of realising
its ostensible purpose[320]
– will usually mean that Parliament has misstated its purpose.
And the third stage, "adequacy in the balance", is
only reached once it has been concluded that the provision is a reasonably
necessary
means of achieving the legitimate
purpose[321]. Hence, a
conclusion that a provision is inadequate in the balance will often mean that
Parliament is entirely precluded from achieving
its legitimate policy objective.
For an implication founded upon representative democracy, this would be a
remarkable outcome. As
I have explained previously, invalidation of a law at
this third stage should only occur in extreme cases where the purpose is trivial
when compared with the great burden that the law places upon political
communication[322].
- In
most cases, the heartland of the dispute in the application of structured
proportionality will be at the second stage of that
analysis, "reasonable
necessity". As will be seen below, this case is no exception. The test of
reasonable necessity remains capable
of further development and refinement,
including the manner in which it applies to different categories of case. But it
must be a
test which caters for the constitutional feature of representative
democracy. It is not merely sufficient to identify a law which
could achieve the
Parliament's purpose to the same degree but with a lesser burden upon political
communication. The presence of
adjectives such as "obvious" or "compelling" in
the descriptions of such alternatives allows latitude for parliamentary choice
in
the implementation of public
policy[323].
The
legitimate purpose of the FITS Act's regulation of registrable
communications activity
- To
ask whether the purpose of a legislative provision is constitutionally
illegitimate is to ask only whether the purpose contravenes
an express or
implied constitutional prohibition. When the enquiry is made in the context of
the implied freedom of political communication,
the question is whether the
purpose of the provision, as opposed to its effect, is to impede freedom of
political
communication[324]. Where
one of the very objects of Parliament is to burden political communication, the
purpose is not "compatible with the maintenance
of the constitutionally
prescribed system of representative and responsible government" and it is
therefore
illegitimate[325].
- It
is essential to identify at the appropriate level of generality the purpose of
the communications activity provision making registrable
those communications
activities undertaken on behalf of a foreign principal. One relevant source for
identification of that purpose
is the objects of the FITS Act itself. That said,
the objects of the Act cannot be conclusive of the
purpose[326], nor are they
necessarily at the appropriate level of generality since the purposes of the
whole legislation can often be cast at
a higher level of generality than the
particular purposes of its disparate
parts[327].
- The
Foreign Influence Transparency Scheme Bill 2017 (Cth) ("the
FITS Bill") was introduced in December 2017 as part of a package of three
Bills, two introduced in the House of Representatives and one in
the Senate.
They were introduced following statements by the Director‑General of the
Australian Security Intelligence Organisation
that "the threat from espionage
and foreign interference is
'unprecedented'"[328]. When
introducing one of the Bills into the House of Representatives, the then Prime
Minister said that any one of the three pieces
of legislation "would mark an
enormous improvement in our ability to counter foreign interference" and that
they were "interlocking
components. All are important and none will fully
succeed without the
others."[329]
- The
two Bills that were considered
"cognately"[330] by the
House of Representatives were the National Security Legislation Amendment
(Espionage and Foreign Interference) Bill 2017 (Cth) and the FITS Bill.
The third Bill, introduced in the Senate, was the Electoral Legislation
Amendment (Electoral Funding and Disclosure Reform) Bill 2017 (Cth).
Together, the three Bills were part of a "Counter Foreign Interference
Strategy", with four pillars: sunlight, enforcement,
deterrence, and capability.
Of these four core purposes in the cognate legislation, "sunlight is at the very
centre"[331]. That object
of "sunlight", or transparency, was set out in s 3 of the FITS Act as
the basis for "a scheme for the registration of persons who undertake certain
activities on behalf of foreign governments and
other foreign principals, in
order to improve the transparency of their activities on behalf of those foreign
principals".
- Descending
to the particularity of the communications activity provision, item 3 of
the table in s 21(1), the Revised Explanatory Memorandum to the
FITS Bill said that it was "essential that there is transparency" for
communications activity on behalf of a foreign principal to allow "the
person,
the public or a section of the public to assess the interests which are being
represented by the person undertaking the communications
activity"[332]. That
transparency is needed
because[333]:
"Decision-makers
in the Australian Government and the public should know what interests are being
advanced in respect of a particular
decision or process. However, it is
difficult to assess the interests of foreign actors when they use intermediaries
to advance their
interests through activities such as lobbying or communication
of information or material. When the relationship between the foreign
actor and
the intermediary is concealed, the ability to assess the interests being brought
to bear on a particular decision or process
is limited and ultimately undermines
the ability of the decision-maker and the public to evaluate and reach informed
decisions on
the basis of those representations."
- In
short, the purpose of regulating registrable communications activity is to make
transparent, to government decision-makers and
to members of the public, the
nature and extent of foreign interests that are involved in political
communication. It does so by
imposing a "spotlight of pitiless
publicity"[334].
LibertyWorks properly accepted that this purpose was legitimate. As I explain
later in these reasons, the purpose is not merely
consistent with freedom of
political communication, it is a purpose that reinforces the freedom despite
doing so by burdening some
political communication.
The extent of
the burden upon political communication
- There
are a number of difficulties involved in the evaluation of the extent of a
burden that is placed on political communication.
One difficulty is that the
evaluation sometimes depends upon reaching conclusions of fact, and the drawing
of inferences, beyond
the stated case but without the benefit of the usual rules
of evidence[335]. Another
difficulty with an overall assessment of the burden is that the evaluative
process requires consideration of two different
dimensions to a
burden[336]. There is a
dimension of breadth, which is concerned with the scope of the burden: how much
political communication, between how
many people, is affected by the law? There
is also a dimension of depth, which is concerned with how deeply the burden is
felt.
- An
evaluation of the burden that a law places on political communication must be
undertaken across the dimensions of both depth and
breadth. For instance, a law
which prohibited for ten years, by sanction of imprisonment, any political
communication by Cabinet
Ministers in favour of a particular political position
on a single, narrow subject would affect only a tiny proportion of the
Australian
population and only a small subset of political communication. The
breadth of the burden, based upon the number of people and extent
of
communication affected, might be found to be very narrow. But the depth of the
burden might be found to be enormous.
Breadth of the
burden
- At
first blush, the burden imposed by the communications activity provision and its
associated provisions appears reasonably narrow.
The burden extends only to
those who communicate "on behalf of" a foreign principal and "for the purpose of
political or governmental
influence". If the words "on behalf of" in s 11
of the FITS Act were used in their well‑established legal sense then the
class of persons affected by the communications activity provision
would be
limited to those speakers who engaged in communications only as agents for
foreign principals. But the concepts of "foreign
principal" and "on behalf of"
are defined in much broader terms.
- A
"foreign principal", as defined in the FITS Act, is not merely a foreign
government or a foreign government related entity in the ordinary sense of those
terms. For instance, "foreign
principal" extends also to any "foreign
organisation that exists primarily to pursue political
objectives"[337] and any
company in which such a foreign organisation holds more than 15% of the issued
share capital[338].
It also extends to individuals within those organisations or companies, who
are not Australian citizens or permanent Australian
residents, who are obliged
to act in accordance with the organisation's or company's
directions[339].
- As
to the definition of "on behalf of" a foreign principal, as Steward J
explains[340], this
definition is not confined to those who speak "on behalf of" foreign principals
as agents in any true sense. The extended definition
of "on behalf
of"[341] in the FITS Act
includes undertaking an activity under an "arrangement of any kind, whether
written or unwritten", and thus the literal terms of
the definition extend
beyond arrangements in the true sense of agency. That true sense describes
authorised acts which change legal
relations by being done on behalf of another
person and for the benefit of, and thus attributable to, that other
person[342].
By contrast, an act done "under" an "arrangement of any kind" is capable of
extending to acts done under contract or even under
"some consensus as to what
is to be done"[343]. The
FITS Act thus appears to redefine, and expand, the long‑established
concept of
agency[344].
- With
the extended meanings of "foreign principal" and "on behalf of", and without any
reading down or severance of those meanings,
or disapplication of their
operation, the regulation of registrable communications activity is not as
confined as the ordinary notion
of "on behalf of a foreign principal" might
suggest. Two examples can be given.
- One
example concerns academic researchers. A conscious choice was made not to
include them within the exemptions contained in Div
4 of Pt 2; no
exemption was made for universities, academics, or research
institutes[345]. The
regulation of registrable communications activity might, therefore, extend to
communications by academic researchers in Australia
whose public research output
is conducted with funding from any company in which more than 15% of the issued
share capital is held
by a foreign organisation that exists primarily to pursue
political objectives[346].
If the funding of those communications meant that they were undertaken "under an
arrangement" then they would be registrable communications
activities if the
academic had a substantial purpose to "affect in any
way"[347] a section of the
public, such as an academic audience, in relation to processes in relation to a
federal government
decision[348].
- Another
example is that the regulation of registrable communications activity might
extend to the same communications by a multinational
company in Australia, again
with a shareholder that exists primarily to pursue political objectives if the
shareholder has more than
15% of the issued share capital. Or, it might extend
to the same communications by a wholly Australian company that is acting under
an "arrangement" within the meaning in s 10 with a foreign company that
exists primarily to pursue political objectives. Here, the regulation extends to
LibertyWorks, a private
think-tank and an incorporated
association[349] advocating
for libertarian political positions, which has an arrangement with the American
Conservative Union, in the form of holding
annual Conservative Political Action
Conferences in Australia.
- Since
LibertyWorks did not directly challenge the scope of the extended definition of
"on behalf of", procedural fairness to the
Commonwealth precludes this Court
from considering whether the effect of that definition is an independent reason
for invalidity
and, if so, the effect that this would have on the remainder of
the FITS Act. As Steward J observes, a consideration of whether the
definition is an independent reason for invalidity would also require
consideration
of whether it could be read down to apply only to its usual common
law sense, a possibility that I consider to be at least open by
a restrictive
reading of "under" in
s 11(1)(a)(i)[350].
Procedural fairness thus requires that the breadth of operation of "on behalf
of" falls to be considered only as part of the breadth
of the burden imposed by
the communications activity provision and its associated provisions.
- Apart
from these expanded definitions, it is also relevant to the breadth of the
burden imposed by the communications activity provision
and its associated
provisions that communications activity includes almost every sense of political
communication by almost every
means. As the Revised Explanatory Memorandum to
the FITS Bill recognised, "communications activities can be very powerful
in affecting the views and opinions of persons involved in Australia's
political
and governmental
processes"[351]. And the
regulation of communications activity targets both speakers and
speech[352].
Depth
of the burden: the nature and extent of disclosure required
- The
depth of the burden prior to the communication, whilst significant, should not
be overstated. The regulation of registrable communications
activity under the
FITS Act is not analogous with the United States notion of "prior restraint", a
loose concept which has been said to provide an "impetus to
distort doctrine in
order to expand
protection"[353]. The
regulation of registrable communications activity does not "forbid" such
activity[354], nor does it
restrain the activity by prohibiting its exercise without permission. It merely
constrains political communication: there is nothing in the scheme under
the FITS Act as it applies to registrable communications activity which
directly or indirectly empowers any form of speech to be prohibited by
anyone
under any conditions. Nevertheless, the burden has real depth. The regulation of
registrable communications activity by the
FITS Act places substantial
constraints and deterrents upon that communication by requirements prior to,
contemporaneous with, and subsequent
to the communication, which all have a
substantial deterrent effect.
- The
application for registration, and any renewal, must be "accompanied by any
information or documents required by the
Secretary"[355]. There is
also an obligation upon a person registered under the scheme to provide any
information or documents required by the Secretary
in order to correct any
inaccuracy or misleading aspect of that information about which the person
becomes aware[356].
Although some of those provisions were relied upon indirectly as part of the
challenge by LibertyWorks to the scheme of registrable
communications activity,
no direct challenge was brought to those provisions on the basis that they
imposed a burden that is not
reasonably necessary. An answer to any such
challenge, explained below, is that well-established principles of
interpretation require
the Secretary's power to be heavily confined. Even if the
provisions did not require that confinement, as open-textured provisions
with
distributive application, the scope of any application which would not be
reasonably necessary for the purposes of the FITS Act would be disapplied
to that extent[357] and, as
Dixon J put it, the provisions would be "restricted" to their valid
operation[358].
- In
any event, the burden upon political communication that is imposed by the powers
of the Secretary should not be overstated. The
only information or documents
that the Secretary can require are those that are reasonably necessary for the
Secretary to assess
whether registration is required and to keep information on
the register accurate. If "the general character of the statute" reveals
that
"powers were intended to be exercised only for a particular purpose, then the
exercise of the powers not for such purpose but
for some ulterior object will be
invalid"[359]. Where the
power is one to obtain information, the general character of a statute will
define the purpose for which that information
can be
used[360]. Registration,
which is at the core of the FITS Act, is plainly the "general character" of the
statute. A request for information or documents by the Secretary under
s 16(2)(d), s 34(3)(d) or s 39(2)(d) will be ultra vires if it is
not necessary for assessing whether registration is required or whether
registration information needs
to be corrected.
- Whilst
the extent of the required information is limited to the matters necessary for
registration, the requirement to disclose that
information to the Secretary is
capable of operating as a real constraint on political communication. The
information required to
be produced might include, for example, details of any
arrangements with a foreign principal, shareholdings of a company, the persons
to whom a communication is going to be made, the content of the communication,
and the purposes for which the communication is to
be made. The information
sought by the Secretary must be produced even if it might tend to incriminate
the person or expose them
to a penalty, although individuals have a derivative
use immunity[361]. The
information can be provided by the Secretary to any agency concerned with the
protection of public revenue as well as a long
list of "enforcement bodies",
which include the Australian Federal Police, the Integrity Commissioner, the
Australian Crime Commission,
the Immigration Department, the Australian
Securities and Investments Commission, and State and Territory police
forces[362]. Although there
are no facts before the Court concerning the extent to which persons might be
deterred from political communication
by the prospects of use of such
information, and therefore any such assessment can only be evaluated in an
abstract way, I would
assess the deterrent effect as significant.
- The
burden on political communication is deepened by obligations during the
communication and after the communication. During registrable
communications
activity, a disclosure about the foreign principal must be made in the form and
manner prescribed by the rules made
for the purposes of
s 38(2)[363]. And,
after the registrable communications activity, the person making the
communication is required to report any material changes
in
circumstances[364] and to
keep records while registered under the scheme, and for three years after
registration ends, of the following: any registrable
activities undertaken "on
behalf of" the foreign principal; any benefits provided to the person by the
foreign principal; any information
or material forming part of any registrable
communications activity in relation to the foreign principal; any registrable
arrangement
between the person and the foreign principal; and other information
communicated or distributed to the public or a section of the
public in
Australia on behalf of the foreign
principal[365].
- These
constraints upon communication are further deepened by substantial sanctions for
not complying with various provisions in their
operation upon registrable
communications activity. The relevant provisions relied upon by LibertyWorks
– ss 16, 18, 34, 37, and 39 – concern the requirements to
register, report registrable communications activity, and renew registration.
Failure to apply
for or to renew registration under the scheme carries maximum
penalties of between 12 months' and five years'
imprisonment[366]. Failure
to fulfil responsibilities under the scheme carries maximum penalties of a fine
of $13,320[367]. Failure to
comply with a notice requiring information carries a maximum penalty of
six months'
imprisonment[368].
The
non-public nature of some information on the register
- During
oral argument, one aspect of the FITS Act raised by the Court as potentially
imposing a burden upon political communication was the maintenance of
information provided to
the Secretary on a non-public register. The Court
queried whether there was a gap between, on the one hand, the information
maintained
by the Secretary on a register in relation to communications activity
and, on the other hand, the information that is to be made
publicly available on
a website. If so, one issue that arises is the extent of that gap and another,
albeit without any agreed facts
before the Court, is the deterrent effect of
such a gap on political communication.
- It
can be accepted that the more information that can be required to be disclosed
by the Secretary and the larger the gap between
the information contained on the
register (which the Secretary can disclose to many enforcement agencies) and the
information on
the website, the greater the deterrent effect of registration and
the more significant the burden will be upon political communication.
Although
questions of extent might be difficult to assess in other than such a relative
manner, it is not difficult to draw an inference
that people will be
substantially less likely to communicate if the effect of doing so is that a
large private dossier about them
will be compiled and maintained by government.
But the FITS Act does not have that effect.
- One
reason that the FITS Act cannot result in a large private dossier of
information about persons being held on a government register is the existence
of constraints
upon the power of the Secretary to obtain information, as
discussed above. Another is the answer by the Solicitor‑General of
the
Commonwealth when this issue was raised by the Court: that it is questionable
whether there is any significant gap between, on
the one hand, the information
kept on the register by the Secretary and, on the other hand, the information
that is made available
to the public on a website. Senior counsel for
LibertyWorks also accepted that there might not be any gap between the register
kept
by the Secretary and the public website.
- The
information that is required to be made available to the public on a website, by
s 43, is limited to the name of the person and the foreign principal, a
description of the kind of registrable activities the person undertakes
or
undertook on behalf of the foreign principal, and any information prescribed by
the rules for the purposes of
s 43(1)(c)[369]. At
first glance, this information appears to be considerably narrower than the
information that the Secretary is required, by s 42, to maintain on a
register. The register must also contain the application for registration, any
renewals of the registration and
information concerning material changes in
circumstances, other communications between the person and the Secretary, and
"any other
information or documents the Secretary considers
appropriate"[370], the
latter of which can only be information and documents considered appropriate for
the purposes of the registration.
- Although
there appears to be a gap between the information on the register and the
information on the public website, this gap is
no more than the concomitant of
the administrative process that is necessary for appropriate information to be
made available to
the public. The information prescribed by s 42 to be
contained on the register provides the substratum for the information required
to be included on the public website for transparency,
including the type of
information which would be expected to be, and is, required by the rules. Such
information includes: the type
of foreign principal involved; in some
circumstances, a description of the relationship between the person and the
foreign principal;
and the date or period over which, and any arrangement, order
or direction by which, the person undertakes, has undertaken or proposes
to
undertake the registrable
activities[371].
- For
the website to serve its intended function as a clear and transparent repository
of information, it cannot simply be the site
of an information dump.
An administrative process is necessary to filter the relevant information
from the application for registration,
renewals, and information concerning
changes in circumstances. The source documents and information on the register
will need to
be transformed into clear, readable information on the public
website. The filtering process will also need to exclude various categories
of
information, prescribed in s 43(2) of the FITS Act, including:
(i) information that is commercially sensitive; (ii) information that
affects national security; and (iii) information
that is prescribed by
rules to be excluded for other reasons.
- Once
the information is filtered in this way, the website will be likely to reflect,
at least in summary, all of the information
on the register. But there remains
an obvious need for that information, and the source documents, to remain on the
register: to
allow the register to be checked for any disputes about accuracy;
and to allow the public information to be updated or corrected,
including in the
performance of the Secretary's powers to request information relating to
material changes in circumstances or renewal
of
registration[372]. This was
the understanding of the Attorney-General's Department of the intended operation
of these powers in the FITS Bill when it said, as recorded in the Advisory
Report on the Foreign Influence Transparency Scheme Bill ("the Advisory
Report"), that it was "intended that information collected ... is placed on the
public website as soon as
practicable"[373].
- This
interpretation is consistent with the purpose of the communications activity
provision and its associated provisions: to make
transparent, to government
decision‑makers and members of the public, the nature and extent of
foreign interests that are involved
in political communication in Australia.
But even if this interpretation were not the best interpretation of the
provisions concerning
the register and website, ss 42 and 43, there might
be a simple answer to any challenge brought to those provisions on the basis
of
any alleged gap that might exist between, on the one hand, the category of
information required by s 42(2)(g) to be maintained
on the register and, on
the other hand, the information to be included on the public website. That
answer might be that the relevant
paragraph of s 42(2) could be severed
from the operation of s 42 by applying s 15A of the Acts
Interpretation Act. It would be hard to see, for instance, how the removal
from the register of information that is not required to ensure transparency
could undermine the FITS Act. However, since no direct challenge was brought to
s 42 or s 43, it is unnecessary to consider this issue
further.
Analogies with the effect of United States
legislation
- It
is almost always unhelpful to rely upon United States First Amendment decisions
for the purposes of assessing the constitutional
validity of Australian
legislation. There is a significant difference between, on the one hand, the
individual, or
"private"[374], freedom
from abridgement of speech expressly guaranteed by the First Amendment to the
United States
Constitution[375] and, on
the other hand, the public freedom in Australia from Commonwealth or State
legislation that imposes unjustified burdens upon
political communication,
impliedly guaranteed by the Constitution. In other words, the different
freedoms are derived in different manners from different provisions enacted in
different contexts
in different constitutions. One recent, stark example of a
difference in the legal approaches is the constitutional restrictions
in
relation to safe access zones recognised by this Court compared with those
recognised by the Supreme Court of the United
States[376].
- Nevertheless,
where laws are expressed in broadly similar terms, comparative United States
jurisprudence can assist by identifying
the effect that the laws can have in
burdening political communication. The United States experience of effect in
relation to broadly
similar laws can assist an Australian court to consider the
breadth and depth of a burden upon political communication in Australia.
This is
particularly so in circumstances such as the present where the FITS Act was
drafted following the recommendation of the Advisory Report, which had
considered "the merit of creating a legislative regime
based on the United
States' Foreign Agents Registration Act 1938" and developed the
FITS Bill after close consultation with the Attorney‑General's
Department's "counterparts in the United
States"[377]. Although care
must still be taken when considering the effects of similar legislation in the
different circumstances of another
country, one basis for an expectation that
the FITS Act would have at least the same effect is that, as Appendix C to
the Advisory Report reveals, the FITS Act was intended in some respects
to have wider operation and to confer greater powers of enforcement than the
United States
legislation[378].
- Like
the FITS Act, the Foreign Agents Registration Act of
1938[379] in the United
States ("the FARA") does not prohibit any political communication. A report
prepared by the Committee on the Judiciary
of the United States House of
Representatives explained the purpose of the FARA in the following
way: "Our National Food and Drug Act requires the proper labeling of
various articles, and safeguards the American public in the field
of health.
This bill seeks only to do the same thing in a different field, that of
political propaganda."[380]
On the other hand, it has been observed by some that the FARA is far from
benign in its actual effect. It has been argued that the FARA imposes a
significant burden on political communication
as it can be and has been
"weaponized", as is said to have also occurred in relation to similar
legislation in Russia and Hungary,
by using the stigmatising label of "foreign
agent" and using "the burdens of registration to punish dissenting or
controversial views"[381].
Commentators have thus written of the dangers of the use of the FARA to
"provide the basis for far-reaching
inquiries"[382].
- Such
alleged effects could reflect a great depth of burden upon political
communication[383].
Ultimately, however, for two reasons in combination there is insufficient basis
to infer that these effects will exist in the application
of the FITS Act.
First, the FITS Act is generally facially neutral in its application to
political communication: many of the provisions regulating registrable
communications
activity are expressed as duties that apply to all affected
persons, independent of the content of the political communication. Secondly,
although there are aspects of the operation of the FITS Act related to
registrable communications activity that may have some capacity for application
in a way which discriminates according
to different types of communication
– such as the powers of the Secretary to obtain information in order to
fulfil the purposes
of the FITS Act – the public nature of information
displayed on the website about persons other than the person alleging
discriminatory application
might readily be expected to expose any
discriminatory, and ultra vires, application of those
powers.
Justification of the burden
- At
the risk of repetition, it is necessary to reiterate the case advanced by
LibertyWorks. That case, clearly stated in oral submissions,
centred upon the
validity of the communications activity provision, item 3 of the table in
s 21(1). Thus, apart from definitions provisions, the only provisions
challenged by
LibertyWorks[384] were
those concerned with the requirements to register, to report, and to renew
registration in respect of registrable communications
activity, and with the
criminal sanctions for failure to do so. Other provisions were relied upon only
to illustrate the operation
of that aspect of the scheme and to demonstrate the
extent of its burden on political communication. The Commonwealth was not called
upon to answer any direct case based on invalidity of other aspects of the
scheme.
Suitability
- The
scheme established by the FITS Act, backed by criminal penalties, requiring a
person who undertakes registrable communications activity to register, report,
and renew
registration is plainly rationally connected with the purpose of
making transparent, to government decision-makers and members of
the public, the
nature and extent of foreign interests that are involved in political
communication in Australia.
- LibertyWorks
submitted that the regulation of registrable communications activity was not
rationally connected with the purpose of
the FITS Act because there was
no covert or otherwise clandestine aspect of the arrangement between
LibertyWorks and the American Conservative
Union, nor was there any financial
aspect to the arrangement between them concerning the conference. Thus, it was
submitted, the
registration scheme as it applies to registrable communications
activity involves overreach. One difficulty with LibertyWorks' submission
is
that it sought to assess the suitability of the scheme by reference to its
individual circumstances, rather than the operation
of the scheme generally. But
more fundamentally, considerations of overreach are irrelevant to this stage of
the structured proportionality
analysis[385].
Considerations that might suggest overreach are part of the assessment of
whether the means adopted were reasonably necessary. They
are not part of the
assessment of suitability. Even provisions which apply their purpose in an
overreaching manner are, almost by
definition, rationally connected with their
purpose.
Reasonable necessity
- Since
LibertyWorks' sole focus was upon invalidity of the communications activity
provision, with other provisions relied upon only
consequentially, LibertyWorks
neither pleaded nor made any written or oral submissions that the particular
definition of "on behalf
of" in s 11, or the particular powers of the
Secretary to obtain information or documents in ss 16 and 34, were not
reasonably necessary to achieve the purposes of the regulation of registrable
communications activity. LibertyWorks' argument,
on an
all‑or‑nothing basis, was that the entire regime regulating
registrable communications activity was not reasonably
necessary.
- LibertyWorks'
submissions about reasonable necessity were short and clear. They were
effectively that the regulation of registrable
communications activity was not
reasonably necessary because there were obvious and compelling alternative means
of achieving the
purpose to the same extent but with considerably less burden
upon political communication. The alternatives were said to be either:
(i) the provision, already existing in
s 38[386], for
disclosure of the foreign principal at the time of communication; or
(ii) the creation of an exemption from the communications
activity regime
if disclosure is made under s 38. No other alternatives were explored by
LibertyWorks or the Court for any replacement of the communications activity
regime.
- The
problem with LibertyWorks' submissions is that its proposed alternatives would
fall far short of achieving to the same extent
the purpose of making
transparent, to government decision‑makers and members of the public, the
nature and extent of foreign
interests that are involved in political
communication in Australia. The alternatives would simply provide disclosure to
the recipients
of the communication. They would not provide disclosure to the
general public either before or after the communication. The examples
given by
the Solicitor‑General of the Commonwealth are a good illustration:
communications to the recipients in a foreign language
newspaper or in a private
Facebook group which disclose the relationship with the foreign principal would
not have the prophylactic
effects of avoiding sinister foreign influence and
disclosing other foreign influence if registration were not
required.
Adequacy in the balance
- LibertyWorks
also submitted, albeit faintly, that the regulation of registrable
communications activity was not adequate in the balance
in light of the burden
that it imposed on political communication. The submission was not, and could
not have been, pressed with
any enthusiasm.
- The
purpose of the regulation of communications activity – to make transparent
the nature and extent of foreign interests that
are involved in political
communication – allows the political process to operate openly and with
better government and public
information about influences. It also acts as a
prophylactic to any sinister foreign influence on Australian political processes
in circumstances of a growing global trend of foreign influence operations
occurring at what the Australian Security Intelligence
Organisation described as
"an unprecedented scale". It is not merely that the purpose is one of great
importance and of the highest
public policy. The purpose also reflects and
reinforces the very constitutional value that supports the implied freedom of
political
communication. The burden imposed here might deter some, but does not
prohibit, political communication. Thus, there is no merit
in any submission
that this is the sort of trivial purpose that is so grossly outweighed by the
burden on political communication
that even reasonably necessary means to
achieve that purpose are not justified.
Conclusion
- The
questions in the special case should be answered in the manner proposed by
Kiefel CJ, Keane and Gleeson JJ.
- STEWARD J.
I agree with the answers given by Kiefel CJ, Keane and Gleeson JJ to the
questions stated for the opinion of the Court
in this special case, largely for
the reasons their Honours give. However, on balance, that is subject to the
following three observations.
- First,
I accept that the three stages of structured
proportionality[387] can,
in a given case, be used as analytical tools to test whether a given law is
reasonably appropriate and adapted in the advancement
of its purpose. Its
deployment to determine the outcome of this case is apt.
- Secondly,
had it been raised by the plaintiff, I may well have decided that
s 11(1)(a)(i) of the Foreign Influence Transparency Scheme Act 2018
(Cth) ("the FITS Act"), which addresses arrangements entered into with
foreign principals, represents, when applied by item 3 of the table in s 21(1)
of the FITS Act, an impermissible burden on the freedom of communication
about matters of government and politics, which this Court has implied from
the
Constitution ("the implied freedom"). However, as the plaintiff
ultimately made no such claim and, in the end, limited its case to an attack on
item 3 of the table in s 21(1) of the FITS Act, it would be
inappropriate to make any such decision. But the matter was raised in argument
and it comprises an important issue about
the reach of the FITS Act which
should be highlighted.
- Thirdly,
for my part, and with the greatest of respect, it is arguable that the implied
freedom does not exist. It may not be sufficiently
supported by the text,
structure and context of the Constitution and, because of the continued
division within this Court about the application of the doctrine of structured
proportionality, it
is still not yet settled law. The division within the Court
over so important an issue may justify a reconsideration of the implication
itself. In that respect, it is one thing to proclaim the necessity of a freedom
of political discourse given the type of representative
and responsible
government created by the Constitution; it is another thing entirely to
make an implication about when and how that freedom may be legitimately limited.
The continued division
in this Court about how that latter task is to be
undertaken is telling. It may suggest that the implied freedom cannot be
adequately
defined. However, no party submitted that the implied freedom did not
exist. In such circumstances, it is my current duty to continue
to apply it
faithfully. Any consideration of the existence of the implied freedom should, if
necessary, be a matter for full argument
on another occasion.
- In
amplification of the last two propositions only, and because of the importance
of the issues which confronted this Court, I make
the following further
remarks.
The FITS Act and "an arrangement"
- My
concern about the inclusion of "an arrangement" in the definition of when a
person is acting "on behalf of" a foreign principal,
in s 11 of the FITS
Act, is important because that inclusion leads to individuals and
organisations being liable to be registered under the FITS Act when they
are only ever truly acting on their own behalf. That seems to be the position of
the plaintiff here, for reasons given
below. To explain this, it is necessary to
set out some historical background.
The Foreign Agents
Registration Act
- In
1938, the United States Congress enacted the Foreign Agents Registration
Act[388] ("the
FARA"). Subject to exemptions, the FARA requires agents of foreign
principals (defined to include the government of a foreign country and a foreign
political party) to file
a registration statement with the United States
Attorney General[389].
Unless so registered, a person cannot act as an agent of a foreign
principal[390]. A wilful
violation of the FARA is a criminal
offence[391].
- In
the Supreme Court of the United States decision of Viereck v United
States, Stone CJ explained the object of the FARA in the following
terms[392]:
"The
Act of 1938 requiring registration of agents for foreign principals was a new
type of legislation adopted in the critical period
before the outbreak of the
war. The general purpose of the legislation was to identify agents of foreign
principals who might engage
in subversive acts or in spreading foreign
propaganda, and to require them to make public record of the nature of their
employment.
But the means adopted to accomplish that end are defined by the
statute itself, which, as will presently appear more in detail, followed
the
recommendations of a House Committee which had investigated foreign propaganda.
These means included the requirement of registration
of agents for foreign
principals – with which it appears that petitioner complied – and
the requirement that the registrant
give certain information concerning his
activities as such agent."
- The
definition of "agent of a foreign principal" in the FARA is instructive.
It refers to a person who engages in various types of political activities in a
particular capacity. That capacity
is, for the most part, when any person "acts
as an agent, representative, employee, or servant, or [when] any person ... acts
in
any other capacity at the order, request, or under the direction or control,
of a foreign principal or of a person any of whose activities
are directly or
indirectly supervised, directed, controlled, financed, or subsidized in whole or
in major part by a foreign
principal"[393].
Importantly, the FARA does not apply to arrangements entered into with a
foreign principal more generally; it also does not apply to a person who is not
acting for a foreign principal but is instead only acting for themselves.
- In
the United States District Court decision of United States v Peace
Information
Center[394], the
defendant had been charged under the FARA for failing to register as an
agent of a foreign principal. Amongst other things, the defendant contended that
the FARA breached the First Amendment to the Constitution of the
United States. That argument was rejected. Judge Holtzoff observed that the
FARA neither limited nor interfered with freedom of speech; it merely
required persons carrying on certain activities to identify themselves
by filing
a registration
statement[395]. In reaching
this conclusion, Judge Holtzoff was influenced by an earlier observation of
Vinson CJ in the Supreme Court decision
of American Communications Assn v
Douds[396] that,
in the context of the First Amendment, it had long been established that freedom
of speech itself depends on the power of constitutional
government to survive:
"[i]f [constitutional government] is to survive it
must have power to protect itself against unlawful conduct and, under some
circumstances,
against incitements to commit unlawful
acts"[397].
- Earlier,
in Viereck, Black J in dissent also observed that the FARA
"implements rather than detracts from the prized freedoms guaranteed by the
First Amendment"[398].
- Of
course, the freedom of speech that is guaranteed by the First Amendment to the
Constitution of the United States is not the same as the implied freedom.
The former is a personal right; the latter is a limitation on law
making[399]. However,
authorities concerning the First Amendment are not necessarily inutile.
- In
2018, the Federal Parliament passed the FITS Act. It was inspired by the
FARA. Indeed, an Advisory Report on the Foreign Influence Transparency
Scheme Bill 2017 (Cth) ("the FITS Bill") prepared by the
Parliamentary Joint Committee on Intelligence and Security in June 2018
reveals that in developing the FITS Bill, public servants within the
Attorney‑General's Department ("the Department") had closely
consulted with their counterparts
in the United States "to avoid ... challenges
and limitations of [the] FARA in meeting its
objective"[400]. A table
comparing the FARA provisions and the provisions contained in the FITS
Bill constitutes Appendix C to that Advisory Report.
- Like
the FARA, the FITS Act establishes a comprehensive regime for the
registration of individuals and entities that engage in a variety of political
activities
"on behalf of" foreign principals. The phrase "on behalf of" is
defined in s 11 of the FITS Act and is important for reasons that
will become apparent. The two enactments serve, at least in part, a similar
object and purpose.
- The
FITS Bill was presented to Parliament at the same time as the Bill which
became the National Security Legislation Amendment (Espionage and Foreign
Interference) Act 2018 (Cth) ("the EFI Act"), which relevantly
enacted, within Pt 5.2 of the Criminal Code (Cth), a new range of
offences designed to attack the threat of spying and foreign interference. A
further Bill, also introduced
at the same time, became the Electoral
Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018
(Cth), which relevantly prohibits donations from foreign governments and
state-owned enterprises being used to finance public debate
and prohibits other
regulated political actors from using donations from foreign sources to fund
reportable political expenditure.
Each of these Acts may be seen as
complementary in purpose. As the Attorney-General said in the Second Reading
Speech for the first
two mentioned
Bills[401]:
"Deception
has always been at the heart of espionage, and so transparency is the evergreen
counterintelligence to propaganda. So
it is that this legislative combination of
new foreign interference offences and a register to make transparent the links
of Australian
advocacy to foreign principals brings Australian
counterintelligence laws into the modern age."
The FITS Act and the intermediary
- As
Kiefel CJ, Keane and Gleeson JJ
explain[402], the
Commonwealth's submission that the true purpose of the FITS Act
is to minimise the risk of foreign principals
exerting undisclosed influence upon the integrity of Australia's political or
election
processes should be accepted as accurate.
- The
object and purpose of the FITS Act is not concerned with the content of
any communication or lobbying or attempt to influence. Rather, as the
Commonwealth submitted,
it is concerned with the mode or method of certain types
of communication. In that respect, the Commonwealth emphasised that the
FITS
Act places no fetter whatsoever on a foreign principal's ability to
communicate. It is only, it was said, if a communication is made
through an
intermediary that the Act is engaged. The emphasis on a person being an
"intermediary" as a trigger point for the application
of the FITS Act is
borne out by the FITS Bill Revised Explanatory Memorandum, which
states[403]:
"Decision-makers
in the Australian Government and the public should know what interests are being
advanced in respect of a particular
decision or process. However, it is
difficult to assess the interests of foreign actors when they use intermediaries
to advance their
interests through activities such as lobbying or communication
of information or material. When the relationship between the foreign
actor and
the intermediary is concealed, the ability to assess the interests being brought
to bear on a particular decision or process
is limited and ultimately undermines
the ability of the decision-maker and the public to evaluate and reach informed
decisions on
the basis of those representations."
- However,
s 11 of the FITS Act defines the term "on behalf of" a foreign principal
very much more broadly as follows:
"Undertaking activity on
behalf of a foreign principal
(1) A person undertakes an activity on behalf of a foreign
principal if:
(a) the person undertakes the activity in any of the following
circumstances:
(i) under an arrangement with the foreign principal;
(ii) in the service of the foreign principal;
(iii) on the order or at the request of the foreign principal;
(iv) under the direction of the foreign principal; and
(b) at the time the arrangement or service is entered into, or the order,
request or direction made, both the person and the foreign
principal knew or
expected that:
(i) the person would or might undertake the activity; and
(ii) the person would or might do so in circumstances set out in section 20,
21, 22 or 23 (whether or not the parties expressly considered the existence of
the scheme)."
264 Section 11(2) provides that it does not matter whether consideration is
payable for the purposes of s 11(1).
- Relevantly,
s 10 defines the terms "arrangement", "foreign political organisation" and
"foreign principal" as follows:
"arrangement includes
a contract, agreement, understanding or other arrangement of any kind, whether
written or unwritten.
...
foreign political organisation includes:
...
(b) a foreign organisation that exists primarily to pursue political
objectives.
foreign principal means:
(a) a foreign government;
(b) a foreign government related entity;
(c) a foreign political organisation;
(d) a foreign government related individual."
- Acting
"in the service of" a foreign principal, or "on the order or at the request of"
a foreign principal, or "under the direction
of" a foreign principal, may each
constitute conventional examples of acting on behalf of another. But acting
"under an arrangement"
may or may not involve a person acting on behalf of or
for another or as an intermediary. Self-evidently, the inclusion within the
definition here of an "arrangement" entered into between a person and a foreign
principal was intended to attack attempts to avoid
the more orthodox
relationships of agency as identified in s 11(1)(a)(ii), (iii) and (iv).
But sometimes legislative caution can perhaps go too far and lead to unintended
consequences.
- As
already mentioned, there is no equivalent inclusion of "arrangements" in the
FARA and, I should add, no equivalent language directed at arrangements
with foreign principals may be found in the offences created by
the EFI
Act.
- The
definition of an "arrangement" is broad, and in my view arguably extends to
occasions when a person does not in fact act for
another, but instead wholly for
themselves. In other statutory contexts, an arrangement has been said to exist
where there exists
"an element of reciprocal commitment even though it may not
be legally
enforceable"[404]. It
ordinarily requires some "meeting of the minds" of the
parties[405]. However, an
arrangement involves more than a mere hope or expectation that each party will
act in accordance with its
terms[406]. Here, in my
view, the reference to an arrangement in s 11(1)(a)(i) appears not to be
confined to synthetic or de facto examples of agency. As defined, the
term does not necessarily connote any form of agency and perhaps cannot be so
read down. There
are no controlling words used in the definition of
"arrangement" directed at the use in some way by a foreign principal of an
Australian
intermediary. The requirement of intention and expectation on the
part of the foreign principal and the person, set out in s 11(1)(b),
probably does not supply such words. Moreover, the very notions of being an
intermediary or agent are arguably of themselves too
imprecise in nature to
justify a court reading down the broad language used in the definition of an
"arrangement" so that it conforms
with what is said to have been what Parliament
really had in mind. Finally, there is no indication in the various Explanatory
Memoranda
that accompanied the FITS Bill of a legislative intention to
curb the breadth of that definition.
- The
potential extensive reach of the FITS Act, arguably achieved by the
inclusion of s 11(1)(a)(i), may be seen in the basal obligation to register in
s 16 with respect to communications activities for the purposes of item 3
of the table in s
21(1)[407]. A person must
apply for registration if the person "becomes liable to register under the
scheme in relation to a foreign principal"
and is not already so registered.
Pursuant to s 18, a person relevantly becomes liable to register if that person
"undertakes an activity on behalf of a foreign principal that is registrable
in
relation to the foreign principal".
- Division
3 of Pt 2 of the FITS Act identifies what activities are registrable. It
includes, pursuant to item 3 of the table in s 21(1), a "[c]ommunications
activity ... for the purpose of political or governmental influence". Section 13
defines what is a "communications activity". It includes the communication or
distribution of information or material to the public.
Section 13(3) contains an
important exemption for certain activities, including those undertaken "in the
ordinary course of [a] disseminator's
business" and which involve communicating
or distributing information or material produced by another person, whose
identity is apparent
in the communication or distribution.
- Section
12 of the FITS Act defines when an activity is undertaken for the purpose
of "political or governmental influence". It includes an activity if the "sole
or primary purpose, or a substantial purpose" is to influence "a process in
relation to a federal government decision". Section 12(4) elaborates on what
sort of decision is intended to be caught. It includes a decision of "any kind
in relation to any matter, including
administrative, legislative and policy
matters ... whether or not the decision is final". The word "influence" is
defined broadly
in s 10 of the FITS Act to include "affect in any
way". Here the plaintiff accepted that the 2019 Conservative Political Action
Conference ("CPAC"), discussed
further below, involved the undertaking of
communications activities for the purpose of political or governmental
influence.
- It
follows that, if a person undertakes a communications activity for the purpose
of "political or governmental influence" "on behalf
of" a foreign principal,
then that person is liable to be registered. A person will undertake such an
activity "on behalf of" a foreign
principal if, relevantly, the person does so
"under an arrangement with the foreign principal" and at the time the
arrangement is
entered into both that person and the foreign principal "knew or
expected" that the person would undertake that activity for the
purpose of
political or governmental
influence[408]. The word
"under" connotes a necessary causal relationship between the activity and the
existence of an arrangement.
- As
noted in the reasons of Kiefel CJ, Keane and Gleeson
JJ[409], the FITS
Act creates a number of offences that can apply to registrants, potential
registrants and those who undertake registrable communications
activities.
- It
would seem that no part of the foregoing statutory regime, as it applies to
arrangements, necessarily requires the person undertaking
the activity to be
acting in fact at the behest of, or on behalf of, a foreign principal or as some
kind of intermediary. A person,
for example, might enter into an arrangement to
collaborate with a foreign principal, on equal terms, to make a submission to
government
concerning a matter of public policy. A person might form an equal
alliance with a foreign principal to pursue a commonly held political
point of
view. A person might jointly host a conference with a foreign principal
concerning political or governmental issues. Each
of these activities might well
constitute registrable activities. In each case, the person in Australia may be
independently advancing
their own interests, thereby acting solely for
themselves. In each case also, the requirement in s 11(1)(b) of the FITS
Act for joint knowledge or expectation concerning the proposed activity
would not necessarily prevent the activity from being liable to
be registered.
- The
Solicitor-General of the Commonwealth agreed with the foregoing. He did not
suggest that the definition of "arrangement" should
be in any way read down. He
did not seek to rely on s 15A of the Acts Interpretation Act 1901
(Cth). He agreed that a person, acting wholly in his or her interests, could be
caught by the FITS Act if he or she had entered into an "arrangement"
with a foreign principal (on the assumption that the other requirements of that
Act
are fulfilled). On that basis, an Australian academic who prepares a paper
(that constitutes a communications activity for the purpose
of political or
governmental influence) under an arrangement or understanding (perhaps to
deliver the paper at an international conference)
with a foreign academic (who
is a foreign principal) who proposes to prepare her or his own paper might be
liable to be registered.
The Solicitor-General submitted that this was a
necessary by-product of important legislation which is broad-based and neutral.
He
submitted, however, that only a very small number of people might be caught
this way.
- Appearing
as intervener, the Solicitor-General for New South Wales submitted that the term
"arrangement" in s 11(1)(a)(i) should
be read down by reference to the
words "on behalf of" in s 11(1). With very great respect, I cannot agree
with that particular submission;
"[i]t would be quite circular to construe the
words of a definition by reference to the term
defined"[410].
Was the plaintiff an intermediary?
- The
agreed facts of this case appear to bear out the foregoing and may be
illustrative of how the FITS Act might apply to a person acting in their
own interests. The plaintiff is a private "think tank" which aims to move public
policy in
the direction of increased individual rights and freedoms, and a
reduction in governmental control over all individuals' personal
and economic
lives. The American Conservative Union ("the ACU") is an American corporation
established for the promotion of political
freedom and for the purpose of
influencing politics and politicians in the United States. It was not disputed
that the ACU was and
is a "foreign political organisation" for the purposes of
the FITS Act.
- The
ACU holds an annual conference – the CPAC – in the United States at
which talks are given by prominent people in
politics, media, arts, sports and
academia. The plaintiff wanted to hold a CPAC with the ACU in Australia in 2019,
and so an oral
agreement to collaborate for that purpose was reached. The
plaintiff organised this event, and was responsible for all running and
venue
costs, scheduling and liaising with all Australian and many overseas speakers
and attendees. The speakers included politicians,
media personalities, members
of think tanks, economists and social commentators.
- In
promotional material, the ACU was advertised as one of the "Think Tank Host
Partners" of the CPAC and described as one of the
"co‑hosts" in a
newspaper article. The ACU facilitated the attendance of some overseas speakers,
and some members of the ACU
also attended. The CPAC was held in August
2019.
- Prior
to the conference being held in 2019, the plaintiff received a letter from an
officer of the Department. The letter recited
that the Department was aware of
the upcoming CPAC, was of the view that the ACU was a foreign political
organisation and therefore
a foreign principal, and was of the view that the
CPAC appeared to constitute a communications activity for the purposes of
political
or governmental influence. The letter invited the plaintiff to
consider whether it needed to register under the FITS Act.
- On
21 October 2019, a notice was sent to the plaintiff by the Department
obliging the plaintiff to produce, pursuant to s 45(2) of the FITS
Act, any information or documents relevant to the question of whether the
plaintiff is liable to register because of its relationship
with the ACU. The
notice stated that the information would include, but not be limited to, the
following:
"Any agreement, contract or other document detailing any
understanding or arrangement between [the plaintiff] and the ACU
Any invitations, letters or other correspondence from [the plaintiff] or the
ACU sent to individuals invited to speak at or attend
the Conference, including
correspondence subsequent to the initial invitation
Copies, transcripts or video or audio recordings of speeches made by speakers
at the conference, including of speeches by members
of [the plaintiff] or the
ACU to introduce or conclude the Conference or a specific day or event at the
conference
Summaries of the topics covered by speakers at the Conference, and
Material produced or distributed by [the plaintiff] promoting the Conference
or the ACU."
- Section
45(2) of the FITS Act empowers the Secretary of the Department to obtain
by notice "any information that may satisfy the Secretary as to whether [a]
person
is liable to register in relation to [a] foreign principal" if the
Secretary "reasonably suspects that [the] person might be liable
to register
under the scheme in relation to [the] foreign principal" and the person is not
so registered[411]. Section
59 relevantly provides that it is an offence not to comply with a notice issued
pursuant to s 45.
- The
plaintiff declined to comply with the notice on the ground that it was invalid.
The Department decided not to take any further
action because, whilst it was of
the view that the plaintiff may have had registration obligations in relation to
the ACU and the
CPAC, it was also satisfied that the arrangement between the
plaintiff and the ACU was "made transparent" through statements to the
media and
promotional materials.
- At
the time it agreed the facts of this case with the Commonwealth, the plaintiff
was planning to hold another CPAC, in November
2020, with the ACU as a "Think
Tank Partner", but the plaintiff expected that COVID-19 restrictions would
prevent anyone from the
ACU from physically attending the conference. Two
speakers from the 2019 CPAC had expressed by telephone a reluctance to
participate
in the 2020 CPAC given the possibility of correspondence having to
be made public pursuant to the FITS Act.
- There
is no suggestion from the agreed facts that the plaintiff has ever undertaken
communications activities on behalf of, or at
the behest of, the ACU, or that
any of the speakers at the 2019 CPAC made speeches on behalf of anyone else or
that anybody was an
intermediary for the ACU. As the promotional material and
other media communications made clear, the 2019 CPAC was jointly hosted
by the
plaintiff and the ACU.
- Nonetheless,
in my view, the collaboration that took place between the plaintiff and the ACU
fell within the ordinary meaning of
the words used in the definition of an
"arrangement" in s 10 of the FITS Act. Given, as noted above, that
it was not disputed that the ACU is a foreign principal and that it appears to
have been accepted that
the CPAC constituted a communications activity for the
purposes of political or governmental influence, it follows that the plaintiff
was liable to be registered under the FITS Act.
The
implied freedom and an "arrangement" under the FITS Act
- I
generally agree with the reasons of Kiefel CJ, Keane and Gleeson JJ concerning
the application of the test expressed in McCloy v New South
Wales[412] ("the
McCloy test") to item 3 of the table in s 21(1) of the FITS
Act and to the FITS Act more generally. The FITS Act falls
within that category of laws identified by Vinson CJ in Douds as being
necessary precisely because, if a democratic government is to endure, it must
have the power to protect itself against unlawful
conduct or corrupting
influences[413]. Such a
law, as Black J observed in Viereck, ultimately promotes freedom of
political expression[414].
And as Brennan J (as his Honour then was) has recognised, "the salutary effect
of freedom of political discussion on performance
in public office can be
neutralized by covert
influences"[415].
- Nonetheless,
I am less confident that the FITS Act will deter only a very small
proportion of persons from making political communications. For my part,
however, what is critical here
is that it was an agreed fact that at the time of
the enactment of the FITS Act, Australia was experiencing
undisclosed foreign influence in respect of government and political systems and
processes and more broadly
in the Australian community. It was agreed that the
Australian Security Intelligence Organisation ("ASIO") had identified foreign
powers clandestinely seeking to shape the opinions of members of the Australian
public, media organisations and government officials
to advance their own
countries' political objectives, including through the recruitment and co-opting
of influential and powerful
Australian voices to lobby decision makers. It was
further agreed that ASIO's view was that espionage and foreign interference
activity
against Australia's interests was "occurring at an unprecedented
scale". Based upon such agreed facts, it should be accepted that
the judicial
branch of government is not well equipped to invalidate Parliament's solution to
this threat as being, for example,
not suitable, necessary and adequate
in its balance. That is especially so given that national security and the
maintenance of the Commonwealth
is at issue; in such cases there must
necessarily be a very large measure of judicial deference in determining the
reach of the implied
freedom[416].
- For
the purposes of applying the McCloy test, as helpfully distilled by the
plurality in Clubb v
Edwards[417], the
Commonwealth admitted that the obligation to register under the FITS Act
creates a burden on the implied freedom, albeit one that was said to be
"modest". The plaintiff then accepted that the purpose of
the FITS Act is
compatible with the maintenance of the constitutionally prescribed system of
representative and responsible government. As to
the test of structured
proportionality, the plaintiff also conceded that the FITS Act is
"suitable" because it exhibits a rational connection to its
purpose[418]. I otherwise
generally agree with the reasons given by Kiefel CJ, Keane and Gleeson
JJ[419] in relation to the
two other limbs of structured proportionality as applied to item 3 of the table
in s 21(1) of the FITS Act.
- However,
as I have explained, the FITS Act may oblige an individual to register,
in the circumstances described above, when she or he may truly be acting only on
behalf of
her‑ or himself, ostensibly contrary to the very express object
and purpose of that Act. That raises for consideration whether
the inclusion of
the word "arrangement", as an instance of when a person may be seen to be
undertaking an activity "on behalf of"
a foreign principal, itself offends the
implied freedom in so far as it is applied for the purposes of item 3 of the
table in s 21(1).
For that purpose, I accept, applying the second limb of the
McCloy test, that the inclusion – because, I infer, it is concerned
with avoidance arrangements – is compatible with the maintenance
of the
constitutionally prescribed system of representative and responsible
government.
- That
leaves the third limb of the McCloy test and its concern with a law's
suitability, necessity and adequacy in its balance. For the moment, it can be
properly assumed
that s 11(1)(a)(i), in so far as it is engaged when
applying item 3 of the table in s 21(1) of the FITS Act, is both a
suitable and necessary law in the required
senses[420]. That is
because I accept that the concept of an "arrangement" provides a means of
capturing those foreign principals who seek covert
influence by ways which avoid
s 11(1)(a)(ii), (iii) and
(iv)[421]; it is also
because no party suggested that there is an obvious and compelling alternative
means of addressing foreign principals
who so
act[422]. This leaves the
issue of adequacy in the balance.
Adequacy in the balance
- It
has been said that a law which is found to be suitable and necessary may
nonetheless impermissibly burden the implied freedom
if "the benefit sought to
be achieved by the law is manifestly outweighed by its adverse effect on the
implied freedom"[423]. In
other words, the question is "whether the law imposes a burden on the implied
freedom which is 'manifestly excessive by comparison
to the demands of
legitimate purpose'"[424].
The inquiry is not a comparison of the benefits of the law with the benefits of
an unburdened implied freedom, but a comparison
of the effects of the law and
the extent of the
burden[425]. An overreach
of means over ends may well demonstrate an excessive burden on the implied
freedom which is disproportionate to the
purpose or object of the impugned
law[426]. In that respect,
a "manifestly" excessive burden on the implied freedom is, in my view, a
reference to a legislative means of achieving
a legitimate purpose that is so
extreme in its effect on that freedom that it cannot, in any sensible way, be
justified. The hurdle
to be jumped is very high. As Nettle J observed in
Brown v
Tasmania[427]:
"[I]n
the Australian constitutional context the description 'adequate in its balance'
is better understood as an outer limit beyond
which the extent of the burden on
the implied freedom of political communication presents as manifestly excessive
by comparison to
the demands of legitimate purpose".
- In
Clubb, Edelman J emphasised that a conclusion that a law is inadequate in
the balance after nevertheless making a finding that the law
has a legitimate
purpose "could have large
consequences"[428]. As a
result, as his Honour pointed out, in some other jurisdictions this test has
been effectively
abandoned[429]. This limb
of structured proportionality should, accordingly, be approached with very
considerable trepidation.
- The
agreed facts of this case illustrate, and only illustrate, the difficulty with
the inclusion of s 11(1)(a)(i) in the FITS Act. They do not suggest that
the plaintiff was in any way an agent of the ACU or in any way doing the ACU's
bidding when holding the
2019 CPAC. As far as one can tell, the plaintiff has
acted in its own right at all times in organising and hosting the CPAC. It did
so with the collaboration and co-operation of the ACU. The ACU was, in that
respect, apparently an equal partner. The plaintiff was
in no way any kind of
intermediary for the ACU. It follows that it is unlikely that any object or
purpose of the FITS Act was fulfilled, or in any way enhanced, by making
the plaintiff liable to be registered.
- Given
the breadth of the definition of "arrangement", contrary to the submission of
the Commonwealth, the position of the plaintiff
may not be unique. For example,
there was material before us from the Department requiring one former prime
minister, who was to
attend merely as a speaker at the 2019 CPAC, to consider
registration. More broadly, as already mentioned, the FITS Act arguably
has the capacity to require registration by any person who might organise a
conference with a foreign principal at which
political communications are to
take place; it might also apply to collaboration between local and overseas
academics in relation
to political communications. Other potential examples of
its reach might include international law and accounting firms who might
lobby
in their own right the government from time to time; and it might apply to
companies in joint ventures with foreign principals.
In each of these examples
the local individual or entity may not in any way be acting as an intermediary
for a foreign principal.
Whether this aspect of the FITS Act will affect
only a small number of Australians is not known to me. No list of currently
registered individuals or entities was before
the Court. However, the foregoing
reasoning suggests that there is a potential for application on many occasions.
It follows that
if s 11(1)(a)(i) of the FITS Act is a valid law, in
so far as it is engaged by item 3 of the table in s 21(1), such individuals or
entities, as described above, may be obliged to register for no reason
whatsoever connected with the object
and purpose of the FITS Act. No one
has suggested that Parliament, in any way, intended that Australians undertaking
political activities in their own interests
needed to register or make
disclosures of any kind pursuant to the FITS Act.
- The
FITS Act, by s 3, proclaims that its object is to improve the
transparency of activities undertaken on behalf of foreign principals. The
Commonwealth
states that the object of the Act is the minimisation of
undisclosed foreign influence on political affairs. But if a person does
not
truly act for a foreign principal, there is no need for transparency; there is
no covert source of foreign influence to disclose.
It follows that it is
arguable that the extension of the FITS Act to those with nothing
relevantly to disclose, to those who have nothing relevantly to hide, and to
those who act only for themselves,
but who, in each case, are nonetheless
associated with a foreign principal by participation in an arrangement, is a
manifestly disproportionate
legislative solution to the aim of minimising
undisclosed foreign political influence. The disproportion may be said to be
manifest
because it treats the innocent as if they are guilty of being
undisclosed intermediaries for a foreign principal. That conclusion
may well be
strengthened when one considers the obligations imposed, on pain of potential
imprisonment, on registrants, potential
registrants and those who undertake
registrable communications activities. The disproportion here is arguably so
stark that it overcomes
any necessary judicial deference concerning matters of
national security.
- In
other words, it is arguable that by reason of s 11(1)(a)(i) of the FITS
Act when applied by item 3 of the table in s 21(1) of that Act, the extent
of the burden on the implied freedom presents, to use the language of Nettle J,
"as manifestly excessive
by comparison to the demands of legitimate
purpose"[430]; the
legitimate purpose here being to address unacceptable arrangements with foreign
principals that fall outside the reach of s
11(1)(a)(ii), (iii) and (iv).
For the reasons already given, it may not be possible to read down the term
"arrangement" to save it
from
invalidity[431]. However, I
express no final view. The plaintiff did not contend for invalidity on this
specific basis. If necessary, the reach of
s 11(1)(a)(i) may be considered
on another occasion.
The existence of the implied freedom
- The
divergence of views in this Court concerning the test for the application of the
implied freedom perhaps may illustrate the tenuous
nature of that implication.
If the content of the implied freedom cannot even now be agreed upon, then, for
my part, that may demonstrate
that it was never justified. In Theophanous v
Herald & Weekly Times Ltd, Dawson J rejected the existence of the
implied freedom and
said[432]:
"Whilst
it may disappoint some to find that the Australian Constitution provides no
guarantee, express or implied, of freedom of speech, that is because those who
framed the Constitution considered it to be one of the virtues of representative
government that no such guarantee was needed. I have elsewhere dealt with
the
manner in which the founding fathers placed their faith in the democratic
process rather than constitutional guarantees to secure
those freedoms regarded
as fundamental in any democratic
society[433].
They took the view that constitutional guarantees operate as a fetter upon the
democratic process and did not consider it necessary
to restrict the power of
Parliament to regulate those liberties which the common law recognizes and
nurtures.
If a constitutional guarantee of freedom of speech or of communication is to
be implied, the implication must be drawn from outside
the Constitution by
reference to some such concept as 'the nature of our
society'[434]. That is not
an implication which can be drawn consistently with established principles of
interpretation.
The Engineers'
Case[435] may
have given rise to the misconception that no implications may be drawn from the
Constitution and to have led to some imbalance in the interpretation of the
federal division of
powers[436]. But it is now
clear that implications can and must be drawn in the interpretation of the
Constitution to give effect to its
intention[437]. However, it
has never been thought that the implications which might properly be drawn are
other than those which are necessary
or obvious having regard to the express
provisions of the Constitution itself. To draw an implication from extrinsic
sources, which the first defendant's argument necessarily entails, would be to
take
a gigantic leap away from the Engineers' Case, guided only by
personal preconceptions of what the Constitution should, rather than does,
contain. It would be wrong to make that leap."
- I
am afraid that I still respectfully agree with much of the foregoing.
- The
grave importance of the freedom to speak about political and governmental issues
to a democratic society is undeniable. But whilst
implying a legal guarantee of
such freedom from the text and structure of the Constitution may be
understandable, that text and structure may not supply a clear answer for when
and how that freedom may permissibly be limited.
The daunting search for a
unifying principle of limitation is yet to uncover a principle that has been
agreed upon by the Justices
of this Court. It may not clearly be found in the
text and structure of the Constitution; nor, as Dawson J observed,
can it be found outside the Constitution. If that is so, then it may be
that it cannot be found at all.
- So
concluding does not deny, for example, the ability of this Court to protect the
means by which representatives are "directly chosen"
by the people for the
purposes of ss 7 and 24 of the Constitution. As Dawson J recognised in
Australian Capital Television Pty Ltd v The Commonwealth, legislation
which, for example, purported to have the effect of denying electors access to
information necessary for the exercise
of a true choice in an election would be
incompatible with the
Constitution[438].
- On
one view, the implication has, since its birth, been a source of uncertainty.
Perhaps, and subject to the Constitution, if a law exhibits a sufficient
connection with a head of constitutional power, that is
enough[439]; it may be
better for its reasonableness and legitimacy to be otherwise matters reserved to
the legislative branch of
government[440].
- I
am not the only Justice of this Court who has been concerned about the implied
freedom. Callinan J was critical of its existence
in Australian Broadcasting
Corporation v Lenah Game Meats Pty
Ltd[441], as was Heydon
J in Monis v The
Queen[442]. There is no
need at this stage to set out what each of these Justices said.
- The
current division of opinion in this Court may, in my view, justify a
reconsideration, with leave if necessary, of the existence
of the implied
freedom. Nonetheless, as already mentioned, neither party challenged the
existence of the implied freedom in this
special case. For the disposition of
this proceeding, it is therefore not appropriate to deny its application here.
It should, if
required, be a matter for full argument to be considered on
another occasion.
Conclusion
- I
agree with the answers to the stated questions proposed by Kiefel CJ, Keane and
Gleeson JJ.
[1] Mueller, Report on the
Investigation into Russian Interference in the 2016 Presidential Election
(2019), vol 1 at 1-5, 14-15; United Kingdom, House of Commons, Digital, Culture,
Media and Sport Committee, Disinformation and 'Fake News': Final Report
(2019) at 68-71, 72; United Kingdom, Intelligence and Security Committee of
Parliament, Russia (2020) at 5, 9.
[2] Bradshaw and Howard, The Global
Disinformation Order: 2019 Global Inventory of Organised Social Media
Manipulation (2019) at 2.
[3] Parliamentary Joint Committee on
Intelligence and Security, Advisory Report on the Foreign Influence
Transparency Scheme Bill 2017 (2018) at 2.
[4] Australian Security Intelligence
Organisation, ASIO Annual Report 2017-18 (2018) at 3, 25; Parliamentary
Joint Committee on Intelligence and Security, Advisory Report on the Foreign
Influence Transparency Scheme Bill 2017 (2018) at 2-5.
[5] Australian Security Intelligence
Organisation, ASIO Annual Report 2017-18 (2018) at 25; Parliamentary
Joint Committee on Intelligence and Security, Advisory Report on the Foreign
Influence Transparency Scheme Bill 2017 (2018) at 6-7, 9-11, 17, 166-167;
Australian Security Intelligence Organisation, Director-General's Annual
Threat Assessment (2020) at 9.
[6] Australian Security Intelligence
Organisation, Director-General's Annual Threat Assessment (2020) at
9.
[7] Parliamentary Joint Committee on
Intelligence and Security, Advisory Report on the Foreign Influence
Transparency Scheme Bill 2017 (2018) at 10-12; Attorney-General's
Department, Parliamentary Joint Committee on Intelligence and Security,
Attorney-General's Department Submission, Inquiry into the Foreign
Influence Transparency Scheme Bill 2017 (2018) at 3, 9-10.
[8] The Secretary of the
Attorney‑General's Department: see Acts Interpretation Act 1901
(Cth), s 19A and the example therein; Administrative Arrangements Order
(Cth), 5 December 2019.
[9] See s 10.
[10] s 16(2)(d).
[11] "Arrangement" is defined to
include a contract, agreement, understanding or other arrangement of any kind,
whether written or unwritten:
s 10.
[12] s 11(2).
[13] s 21(1)(a), (b) and
(c).
[14] See s 10.
[15] s 13(2).
[16] See s 10.
[17] See s 12(1).
[18] s 24.
[19] s 25.
[20] s 27.
[21] s 29C.
[22] s 29D.
[23] s 29F.
[24] s 26.
[25] s 29(1).
[26] s 17.
[27] ss 31, 32.
[28] s 34.
[29] s 35.
[30] "Voting period" is defined: see
s 10.
[31] s 36.
[32] s 37.
[33] s 39.
[34] s 40(2).
[35] "Rules" means rules made under
s 71: see s 10.
[36] s 42(1).
[37] s 42(2).
[38] s 43(1).
[39] s 43(2).
[40] s 44.
[41] s 46(3), (7).
[42] s 57.
[43] s 57A.
[44] s 58.
[45] See [5] above.
[46] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520; see also McCloy v New South
Wales [2015] HCA 34; (2015) 257 CLR 178 at 200 [23].
[47] Harrison Moore, The
Constitution of the Commonwealth of Australia (1902) at 329.
[48] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 560.
[49] Unions NSW v New South
Wales (2013) 252 CLR 530 at 551 [27].
[50] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 560; Wotton v Queensland
(2012) 246 CLR 1 at 31 [80]; Unions NSW v New South Wales (2013) 252
CLR 530 at 551 [30], 554 [36]; McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR
178 at 202-203 [30]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at 360 [90].
[51] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 213 [68]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at
369 [127]; Comcare v Banerji [2019] HCA 23; (2019) 267 CLR 373 at 399 [29].
[52] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 561-562, 567; McCloy v New
South Wales [2015] HCA 34; (2015) 257 CLR 178 at 203 [31].
[53] Clubb v Edwards [2019] HCA 11; (2019)
267 CLR 171 at 199-201 [66]- [70]; see also McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 213 [68].
[54] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 193-196 [2]- [4]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR
328 at 368 [123], 416 [278]; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at
200-202 [70]- [74], 264 [266], 311 [408], 330 [463]; Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 400 [32].
[55] [1997] HCA 25; (1997) 189 CLR 520.
[56] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 569, 575; see also
McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 214-215 [71];
Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 200 [67].
[57] [2015] HCA 34; (2015) 257 CLR 178 at 193-195
[2], 217 [79].
[58] Brown v Tasmania [2017] HCA 43; (2017)
261 CLR 328 at 368-369 [123]‑[127], 416-417 [278]; Unions NSW v New
South Wales [2019] HCA 1; (2019) 264 CLR 595 at 615 [42], 638 [110], 653-656 [161]-[167];
Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 208-209 [96]- [102], 266-269
[270]-[275], 341-345 [491]-[501]; Comcare v Banerji [2019] HCA 23; (2019) 267 CLR 373 at
402-405 [38]- [42], 455-458 [202]-[206]. See also Spence v Queensland
[2019] HCA 15; (2019) 93 ALJR 643 at 670-671 [93], 671 [97], 719 [324]-[326]; [2019] HCA 15; 367 ALR 587
at 613, 614, 677.
[59] Palmer v Western Australia
[2021] HCA 5; (2021) 95 ALJR 229 at 242-243 [52], 284 [264]; [2021] HCA 5; 388 ALR 180 at 193, 247.
[60] Tajjour v New South Wales
[2014] HCA 35; (2014) 254 CLR 508 at 551 [37], 575 [132].
[61] See the definition of "foreign
political organisation" in s 10.
[62] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017
at 13146.
[63] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017
at 13148.
[64] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017
at 13148.
[65] Australia, Senate, Foreign
Influence Transparency Scheme Bill 2017, Revised Explanatory Memorandum at
72 [401].
[66] Australia, Senate, Foreign
Influence Transparency Scheme Bill 2017, Revised Explanatory Memorandum at
150 [853].
[67] [1912] HCA 61; (1912) 15 CLR 355.
[68] Smith v Oldham [1912] HCA 61; (1912) 15
CLR 355 at 358-359.
[69] See also Lobbying Act,
RSC 1985, c 44 (4th Supp).
[70] 22 USC §612.
[71] Attorney General of United
States v Irish People Inc [1982] USCADC 274; (1982) 684 F 2d 928 at 935.
[72] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 207-208 [46]- [47].
[73] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 218 [84].
[74]
[1992] HCA 45; (1992) 177 CLR 106 at 159.
[75] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 218 [84].
[76] As amended by the Electoral
Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018
(Cth).
[77] Registration of political
parties was introduced by the Commonwealth Electoral Legislation Amendment
Act 1983 (Cth). Registration of party agents was introduced by the
Electoral and Referendum Amendment Act 1989 (Cth); a Register of
Candidates was established by the Commonwealth Electoral Legislation
Amendment Act 1983 (Cth) but was abolished in 1987 by the Commonwealth
Electoral Amendment Act 1987 (Cth).
[78] See also Integrity Act 2009
(Qld); Lobbyists Act 2015 (SA); Integrity (Lobbyists) Act 2016
(WA).
[79] Comcare v Banerji [2019] HCA 23; (2019)
267 CLR 373 at 398 [28], 401-402 [35]‑[36].
[80] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 209-210 [54]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR
328 at 370 [132]- [133]; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 205
[84].
[81] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 217 [80]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328
at 370 [133].
[82] Comcare v Banerji [2019] HCA 23; (2019)
267 CLR 373 at 395-396 [20].
[83] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 568; Unions NSW v New
South Wales (2013) 252 CLR 530 at 556 [44]; McCloy v New South
Wales [2015] HCA 34; (2015) 257 CLR 178 at 210 [57], 217 [81]; Brown v Tasmania
[2017] HCA 43; (2017) 261 CLR 328 at 371-372 [139].
[84] Monis v The Queen (2013)
249 CLR 92 at 214 [347]; Tajjour v New South Wales [2014] HCA 35; (2014) 254 CLR 508 at
550 [36]; McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 210-211
[57]- [58]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at 371-372 [139]; Clubb
v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 186 [6], 262 [263], 264-265 [266(3)],
265-266 [267]-[268], 269-270 [277], 337 [478]-[480]; Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 401 [35].
[85] Betfair Pty Ltd v Western
Australia [2008] HCA 11; (2008) 234 CLR 418 at 477 [103]; Palmer v Western Australia
[2021] HCA 5; (2021) 95 ALJR 229 at 240 [37], 242 [50]; [2021] HCA 5; 388 ALR 180 at 190, 193.
[86] Comcare v Banerji [2019] HCA 23; (2019)
267 CLR 373 at 402 [38].
[87] McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 218-219 [86]- [87]; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR
171 at 209 [101]- [102]; Comcare v Banerji [2019] HCA 23; (2019) 267 CLR 373 at 402-403
[38], 404 [42].
[88] (1954) 28 ALJ 282 at 283.
[89] Knight v Victoria [2017] HCA 29; (2017)
261 CLR 306 at 324-325 [32]- [33].
[90] Tajjour v New South
Wales [2014] HCA 35; (2014) 254 CLR 508 at 587-588 [173], referring to The Commonwealth
v Queensland (1987) 62 ALJR 1 at 1-2; Coleman v Power [2004] HCA 39; (2004) 220 CLR
1 at 56 [110].
[91] Duncan v New South Wales
[2015] HCA 13; (2015) 255 CLR 388 at 410 [52].
[92] Tajjour v New South
Wales [2014] HCA 35; (2014) 254 CLR 508 at 579-581 [148]- [152]; McCloy v New South
Wales [2015] HCA 34; (2015) 257 CLR 178 at 231-234 [129]- [138], 238-239 [150]-[152];
Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at 389-391 [200]- [206]; Clubb v
Edwards [2019] HCA 11; (2019) 267 CLR 171 at 225 [161]- [162]; Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 408-409 [53]- [54].
[93] Emerson, The System of
Freedom of Expression (1970) at 506.
[94] Nebraska Press Assn v
Stuart [1976] USSC 158; (1976) 427 US 539 at 559, citing Bickel, The Morality of
Consent (1975) at 61.
[95] Emerson, "The Doctrine of Prior
Restraint" (1955) 20 Law and Contemporary Problems 648 at 650-651.
[96] Blackstone, Commentaries on
the Laws of England (1769), bk 4, ch 11 at 151.
[97] Under 4 Geo IV, c 96, s 29.
[98] See Spigelman, "Foundations of
the Freedom of the Press in Australia", in Castle (ed), Speeches of a
Chief Justice: James Spigelman 1998-2008 (2008) 373; Campbell, "Colonial
Legislation and the Laws of England" [1965] UTasLawRw 3; (1965) 2 University of Tasmania Law
Review 148 at 157-159.
[99] Historical Records of
Australia, Series I, Volume 13 at 292-294. See also Newspaper Acts
Opinion [1827] NSWKR 3. The paragraphing has been added. The emphasis is in
the original. The footnoting is also in the original but has
been
modernised.
[100] Bacon, A New Abridgment
of the Law, 6th ed (1807), vol 4 at 764-768; Mitchel v Reynolds
[1711] EngR 38; (1711) 1 P Wms 181 at 183 [24 ER 347 at 348]; The Clothworkers of
Ipswich Case (1614) Godbolt 252 at 253 [1653] EngR 542; [78 ER 147 at 147-148].
[101] Blackstone, Commentaries
on the Laws of England (1769), bk 4, ch 11 at 151.
[102] Trial of William Cobbett
(1804) 29 St Tr 1 at 49.
[103] Holt, The Law of
Libel, 2nd ed (1816) at 59-60.
[104] Historical Records of
Australia, Series IV, Section A, Volume 1 at 682.
[105] [1992] HCA 45; (1992) 177 CLR 106.
[106] [1992] HCA 46; (1992) 177 CLR 1.
[107] [2004] HCA 41; (2004) 220 CLR 181 at 200
[40].
[108] Section 3 of the FITS
Act.
[109] Australia, House of
Representatives, Parliamentary Debates (Hansard), 26 June 2018 at 6399.
See also Australia, Senate, Foreign Influence Transparency Scheme Bill
2017, Revised Explanatory Memorandum at [1]-[5].
[110] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13146.
[111] Brandeis, "What Publicity
Can Do", Harper's Weekly, 20 December 1913 at 10. See also Brandeis,
Other People's Money and How the Bankers Use It, new ed (1932) at
92.
[112] HR Rep No 1381, 75th Cong,
1st Sess (1937) at 2.
[113] Section 16(2)(d), s 34(1)
and (3)(d), and s 39(2)(d) of the FITS Act.
[114] Section 42 of the FITS
Act.
[115] Section 43 of the FITS
Act.
[116] Including the Australian
Federal Police or the police force of a State or Territory, the Integrity
Commissioner, the Office of the
Director of Public Prosecutions or similar body
established under a State or Territory law, the Australian Crime Commission, the
Immigration Department, the Australian Prudential Regulation Authority, the
Australian Securities and Investments Commission, the
New South Wales Crime
Commission, the Independent Commission Against Corruption of New South Wales,
the Law Enforcement Conduct Commission
of New South Wales, the Independent
Broad-based Anti-corruption Commission of Victoria, the Crime and Corruption
Commission of Queensland,
the Corruption and Crime Commission of Western
Australia, the Independent Commissioner Against Corruption of South Australia,
and
any other Commonwealth agency or State or Territory authority "to the extent
that it is responsible for administering, or performing
a function under, a law
that imposes a penalty or sanction". See the definition of "enforcement body" in
s 6(1) of the Privacy Act 1988 (Cth).
[117] Including "the prevention,
detection, investigation, prosecution or punishment of ... criminal offences ...
or ... breaches of a
law imposing a penalty or sanction", or "the conduct of
surveillance activities, intelligence gathering activities or monitoring
activities", or "the prevention, detection, investigation or remedying of
misconduct of a serious nature". See the definition of
"enforcement related
activity" in s 6(1) of the Privacy Act 1988 (Cth).
[118] Item 1 of the table in s
53(1) of the FITS Act.
[119] Item 2 of the table in s
53(1) of the FITS Act.
[120] Including the protection of
the Commonwealth, the States and Territories and their people from "clandestine
or deceptive" activities
carried on for the purpose of affecting political or
governmental processes relating to Australia undertaken in active collaboration
with a foreign government, an entity directed or controlled by a foreign
government or a foreign political organisation. See the
definitions of
"security", "acts of foreign interference" and "foreign power" in s 4 of the
Australian Security Intelligence Organisation Act 1979 (Cth).
[121] Item 3 of the table in s
53(1) of the FITS Act.
[122] Item 4 of the table in s
53(1) of the FITS Act.
[123] Johns v Australian
Securities Commission [1993] HCA 56; (1993) 178 CLR 408 at 424; Katsuno v The Queen
[1999] HCA 50; (1999) 199 CLR 40 at 57 [24].
[124] Minister for Aboriginal
Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 at 40, citing R v
Australian Broadcasting Tribunal; Ex parte 2HD Pty Ltd [1979] HCA 62; (1979) 144 CLR 45 at
49-50, adopting earlier formulations in Swan Hill Corporation v Bradbury
[1937] HCA 15; (1937) 56 CLR 746 at 757-758 and Water Conservation and Irrigation
Commission (NSW) v Browning (1947) 74 CLR 492 at 505.
[125] Section 4 of the FITS Act
(emphasis added).
[126] Section 41 of the FITS Act
(emphasis added).
[127] Section 43(1) of the FITS
Act.
[128] Section 43(2) of the FITS
Act.
[129] Knight v Victoria
[2017] HCA 29; (2017) 261 CLR 306 at 324-325 [32]- [33], applying Lambert v Weichelt
(1954) 28 ALJ 282 at 283.
[130] cf Spence v
Queensland [2019] HCA 15; (2019) 93 ALJR 643 at 669-670 [85]- [91]; [2019] HCA 15; 367 ALR 587 at 611-613.
[131] cf Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 400 [33].
[132] cf Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 401 [35].
[133] cf Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 402 [38].
[134] cf Thomas v Collins
[1945] USSC 32; (1945) 323 US 516 at 544-545; United States v Harriss [1954] USSC 62; (1954) 347 US 612
at 625-626, 636.
[135] eg Pt 2A of the Migration
Act 1958 (Cth), considered in Cunliffe v The Commonwealth [1994] HCA 44; (1994) 182
CLR 272.
[136] The other measures were the
Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act
2018 (Cth) and the National Security Legislation Amendment (Espionage and
Foreign Interference) Act 2018 (Cth).
[137] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13146.
[138] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13148.
[139] FITS Act, s 3.
[140] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13148.
[141] FITS Act,
s 21(1), table item 3.
[142] FITS Act, ss 16,
18, 21(1), table item 3, 37, 39, 57-59. As these reasons will explain,
LibertyWorks' challenge to certain definitions in ss 10, 11, 12, 13, 13A
and 14 fails as the definitions have no operative effect absent other
provisions.
[143] See FITS Act, Pt 2,
Div 3.
[144] The other registrable
activities include "parliamentary lobbying on behalf of [a] foreign government"
and "[p]arliamentary lobbying",
"[g]eneral political lobbying" and
"[d]isbursement activity" for the purpose of political or governmental
influence: FITS Act, ss 20, 21(1), table items 1, 2 and 4.
[145] Fairfax v Federal
Commissioner of Taxation [1965] HCA 64; (1965) 114 CLR 1 at 7; Plaintiff S157/2002
v The Commonwealth [2003] HCA 2; (2003) 211 CLR 476 at 498-499 [53]; Coleman v Power
[2004] HCA 39; (2004) 220 CLR 1 at 21 [3], 68 [158]; Gypsy Jokers Motorcycle Club Inc v
Commissioner of Police (2008) 234 CLR 532 at 553 [11];
North Australian Aboriginal Justice Agency Ltd v Northern Territory
[2015] HCA 41; (2015) 256 CLR 569 at 581 [11]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at
428 [307], 433‑434 [326], 479-480 [485]‑[486], 481 [488].
[146] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 434 [136], [138].
[147] Banerji [2019] HCA 23; (2019) 267
CLR 373 at 434 [138]. See also Attorney‑General (Cth) v Schmidt
[1961] HCA 21; (1961) 105 CLR 361 at 376; Gerhardy v Brown [1985] HCA 11; (1985) 159 CLR 70 at 103;
Wainohu v New South Wales (2011) 243 CLR 181 at 220 [70]; Murphy v
Electoral Commissioner (2016) 261 CLR 28 at 128 [321], 129 [328].
[148] Project Blue Sky Inc v
Australian Broadcasting Authority (1998) 194 CLR 355 at 366 [13];
Australian Communication Exchange Ltd v Deputy Commissioner of Taxation
[2003] HCA 55; (2003) 77 ALJR 1806 at 1808 [7], 1815 [51]; [2003] HCA 55; 201 ALR 271 at 274, 283; Coleman
[2004] HCA 39; (2004) 220 CLR 1 at 93-94 [243]. See also Autodesk Inc v Dyason [No
2] [1993] HCA 6; (1993) 176 CLR 300 at 308.
[149] Knight v Victoria
[2017] HCA 29; (2017) 261 CLR 306 at 324-325 [33], quoting Real Estate Institute of
NSW v Blair [1946] HCA 43; (1946) 73 CLR 213 at 227. See also Pape v Federal
Commissioner of Taxation [2009] HCA 23; (2009) 238 CLR 1 at 69 [156]- [158].
[150] Knight [2017] HCA 29; (2017) 261 CLR
306 at 324-325 [32]- [33], applying Lambert v Weichelt (1954) 28 ALJ 282
at 283. See also Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 192‑193
[32]-[36], 216-217 [135]-[138], 248-249 [230], 287 [329].
[151] See, eg, FITS Act,
ss 16(2)(d), 34-37, 39(2)(d), 45-46.
[152] FITS Act,
s 50.
[153] FITS Act,
s 42.
[154] FITS Act,
s 43.
[155] FITS Act,
s 3.
[156] cf Nationwide News Pty
Ltd v Wills [1992] HCA 46; (1992) 177 CLR 1 at 61.
[157] cf Pidoto v Victoria
[1943] HCA 37; (1943) 68 CLR 87 at 111; Bank of NSW v The Commonwealth [1948] HCA 7; (1948) 76 CLR 1
at 152, 164, 372; Spence v Queensland [2019] HCA 15; (2019) 93 ALJR 643
at 669‑670 [87]-[90]; [2019] HCA 15; 367 ALR 587 at 612-613.
[158] See, eg, FITS Act,
s 53.
[159] Brown [2017] HCA 43; (2017) 261 CLR
328 at 430 [312]. See also Australian Capital Television Pty Ltd v The
Commonwealth [1992] HCA 45; (1992) 177 CLR 106 at 138-139 ("ACTV");
Lange v Australian Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520
at 557-562; Unions NSW v New South Wales
(2013) 252 CLR 530 at 551 [27]-[28], 571 [104]‑[109] ("Unions No
1").
[160] Unions No 1 (2013)
252 CLR 530 at 551 [30].
[161] ACTV [1992] HCA 45; (1992) 177 CLR
106 at 139. See also Unions No 1 (2013) 252 CLR 530 at 551-552
[28]-[30]; Tajjour v New South Wales [2014] HCA 35; (2014) 254 CLR 508 at 577 [140];
Brown [2017] HCA 43; (2017) 261 CLR 328 at 430 [312].
[162] ACTV [1992] HCA 45; (1992) 177 CLR
106 at 139 (footnote omitted).
[163] Hogan v Hinch [2011] HCA 4; (2011)
243 CLR 506 at 544 [49].
[164] Lange [1997] HCA 25; (1997) 189 CLR
520 at 571; see also 561. See also Tajjour [2014] HCA 35; (2014) 254 CLR 508 at 577
[141].
[165] Lange [1997] HCA 25; (1997) 189 CLR
520 at 571.
[166] ACTV [1992] HCA 45; (1992) 177 CLR
106 at 138.
[167] ACTV [1992] HCA 45; (1992) 177 CLR
106 at 138.
[168] See test identified in
Lange [1997] HCA 25; (1997) 189 CLR 520 at 561-562, 567-568, as modified and refined in
Coleman [2004] HCA 39; (2004) 220 CLR 1 at 51 [95]- [96], 77-78 [196], 82 [211],
McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 193-195 [2] and Brown
[2017] HCA 43; (2017) 261 CLR 328 at 363-364 [104], 375‑376 [155]-[156], 398 [236],
413 [271], 416 [277], 432-433 [319]-[325], 478 [481].
[169] Lange [1997] HCA 25; (1997) 189 CLR
520 at 567; Unions No 1 (2013) 252 CLR 530 at 553 [35]; Brown
[2017] HCA 43; (2017) 261 CLR 328 at 353 [61], 382 [180].
[170] Clubb [2019] HCA 11; (2019) 267 CLR
171 at 192-193 [35]. See also Wotton v Queensland (2012) 246 CLR 1
at 31 [80]; Unions No 1 (2013) 252 CLR 530 at 554 [36], 586 [166];
Brown [2017] HCA 43; (2017) 261 CLR 328 at 360 [90].
[171] Wotton (2012) 246 CLR
1 at 30 [78], 31 [80]; Unions No 1 (2013) 252 CLR 530 at 553-554
[35]-[36]; Brown [2017] HCA 43; (2017) 261 CLR 328 at 360 [90], 398 [237]; Clubb
[2019] HCA 11; (2019) 267 CLR 171 at 301 [377].
[172] Monis v The Queen
(2013) 249 CLR 92 at 142 [108]. See also Unions No 1 (2013) 252 CLR 530
at 574 [119]; McCloy [2015] HCA 34; (2015) 257 CLR 178 at 230-231 [126];
Brown [2017] HCA 43; (2017) 261 CLR 328 at 382-383 [180], 455 [395]; Clubb
[2019] HCA 11; (2019) 267 CLR 171 at 257 [250].
[173] Monis (2013) 249 CLR
92 at 146 [124]; Tajjour [2014] HCA 35; (2014) 254 CLR 508 at 580 [151]; McCloy
[2015] HCA 34; (2015) 257 CLR 178 at 238‑239 [150]-[152], 259 [222], 269-270 [255];
Brown [2017] HCA 43; (2017) 261 CLR 328 at 367 [118], 369 [128], 378-379 [164]-[165],
389‑390 [200]-[201], 423 [291], 460 [411], 477-478 [478];
Clubb [2019] HCA 11; (2019) 267 CLR 171 at 299-300 [369].
[174] FITS Act, s 3.
Each italicised term is defined in the FITS Act.
[175] "[S]cheme" means the FITS
Act and rules made under s 71: FITS Act, s 10 definitions
of "scheme" and "rules". Two sets of rules have been made under s 71:
Foreign Influence Transparency Scheme Rules 2018 (Cth) ("FITS
Rules") and Foreign Influence Transparency Scheme (Disclosure in
Communications Activity) Rules 2018 (Cth) ("Disclosure Rules").
[176] FITS Act, ss 16
and 18; see also Pt 2, Div 3.
[177] FITS Act,
s 42.
[178] FITS Act, s 43;
FITS Rules, s 6.
[179] FITS Act, s 38;
Disclosure Rules, Pt 2.
[180] FITS Act, Pt 3.
[181] FITS Act, Pt 5.
[182] FITS Act, s 18(1);
see also ss 11 and 13A.
[183] FITS Act, s 10
definition of "person".
[184] FITS Act, s 10
definition of "foreign principal".
[185] Each term is defined in s 10
of the FITS Act.
[186] FITS Act, s 10
para (b) of the definition of "foreign political organisation".
[187] cf ACTV [1992] HCA 45; (1992) 177
CLR 106 at 125-126.
[188] FITS Act,
s 11(2).
[189] FITS Act,
s 11(1).
[190] FITS Act, s 10
definition of "arrangement".
[191] A person is not required to
register if they are exempt under Pt 2, Div 4 of the Act: FITS Act,
ss 20(b), 21(1)(c), 22(d), 23(d). See also FITS Rules, s 5. No exemption
was said to apply to LibertyWorks.
[192] A registrable arrangement is
relevantly an arrangement between a person and a foreign principal for the
person to undertake, on
behalf of the foreign principal, one or more
activities which, if undertaken, would be registrable: FITS Act,
s 13A.
[193] Once a person becomes liable
to register, they remain liable until they cease to be liable under s 19:
FITS Act, s 18(2).
[194] FITS Act,
s 57.
[195] FITS Act,
s 16(2).
[196] Attorney-General's
Department, Foreign Influence Transparency Scheme: Factsheet 15, April
2019.
[197] FITS Act,
s 17.
[198] FITS Act, s 10
definition of "registrant".
[199] FITS Act,
s 21(1), table item 3.
[200] FITS Act,
s 13(1).
[201] FITS Act, s 10
definition of "influence".
[202] See FITS Act,
s 12(1).
[203] FITS Act, s
12(1)(a).
[204] FITS Act, s
12(1)(b).
[205] FITS Act,
s 12(2).
[206] FITS Act,
ss 12(1)(b), 12(3), 12(4).
[207] FITS Act,
s 12(4).
[208] FITS Act,
s 13(2).
[209] FITS Act,
s 14.
[210] FITS Act,
s 14(a).
[211] FITS Act,
s 14(b).
[212] FITS Act, Pt 3.
[213] FITS Act,
s 16(2)(d). See [144] above.
[214] FITS Act,
s 39(2)(d).
[215] FITS Act,
s 34(1).
[216] FITS Act, s
34(1).
[217] FITS Act,
s 34(3)(d).
[218] FITS Act, ss 36
and 37.
[219] FITS Act,
s 40(1) and (1A).
[220] FITS Act,
s 40(2).
[221] FITS Act,
s 45.
[222] FITS Act,
s 46.
[223] FITS Act,
ss 58(1), 58(3), 59.
[224] FITS Act,
s 38(1).
[225] FITS Act,
s 58(2).
[226] FITS Act,
s 50(a).
[227] FITS Act,
s 51(a).
[228] FITS Act,
s 52.
[229] FITS Act, s 53(1),
table item 1. "[E]nforcement body" is defined in s 6(1) of the Privacy
Act to include a broad array of law enforcement bodies, and "enforcement
related activity" is defined to include, among other things,
"the prevention,
detection, investigation, prosecution or punishment of" criminal offences or
breaches of a law imposing a penalty
or sanction.
[230] FITS Act,
s 53(1), table item 3. "[S]ecurity" is defined in s 4 of the Australian
Security Intelligence Organisation Act to mean protection from espionage,
sabotage, politically motivated violence, promotion of communal violence,
attacks on Australia's
defence system or acts of foreign interference.
[231] Johns v Australian
Securities Commission [1993] HCA 56; (1993) 178 CLR 408 at 423; see also 424‑425.
[232] FITS Act,
s 42(2).
[233] Which contains ss 34-37
of the FITS Act.
[234] FITS Act,
s 42(3).
[235] "Despite" s 43(1),
the website "must not" include information that the Secretary is satisfied
"(a) is commercially sensitive; or (b) affects national
security; or
(c) is of a kind prescribed by the rules" for the purposes of s 43(2)(c):
FITS Act, s 43(2). See also s 6A of the FITS Rules.
[236] FITS Act,
s 43(1)(a)‑(c).
[237] FITS Rules,
s 6(a)-(b), (g)-(h).
[238] FITS Rules,
s 6(c)
[239] FITS Rules,
s 6(d) and (i).
[240] FITS Rules,
s 6(e)-(f).
[241] FITS Rules,
s 6(j)-(k).
[242] FITS Rules,
s 6(l)-(m).
[243] FITS Rules,
s 6(n).
[244] FITS Rules,
s 6(o)-(p).
[245] FITS Act,
s 42.
[246] FITS Act,
s 43.
[247] cf Commonwealth Electoral
Act 1918 (Cth), ss 287N and 287Q.
[248] cf Competition and
Consumer Act 2010 (Cth), s 152BCW.
[249] FITS Act,
s 42(2)(g) and (3)(c).
[250] See Acts Interpretation
Act 1901 (Cth), s 2B definition of "document".
[251] See especially FITS
Act, s 42(2)(b)-(e) and (3)(a).
[252] Provisional and final
transparency notices and any variation or revocation of a transparency notice
must also be made available
to the public "on a website": FITS Act,
s 43(2A).
[253] FITS Act,
ss 42(2)(a) and 43(1)(a).
[254] FITS Act,
ss 42(3)(aa)‑(ac) and 43(2A).
[255] FITS Act,
ss 42(2)(f), 42(3)(b), 43(1)(c). See also FITS Rules,
s 6.
[256] FITS Act,
s 43(1)(b).
[257] cf Acts Interpretation
Act, s 33(2A).
[258] FITS Act,
s 43(1) and (2A). See Fenton v Hampton (1858) 11 Moo 347 at 360
[1858] EngR 321; [14 ER 727 at 732]; Minister for Immigration and Ethnic Affairs v
Mayer [1985] HCA 70; (1985) 157 CLR 290 at 301-302; Egan v Willis [1998] HCA 71; (1998) 195 CLR 424
at 468 [83]. See also Herzfeld and Prince, Interpretation, 2nd
ed (2020) at 76 [4.210].
[259] FITS Act,
s 43(2).
[260] Australia, Parliament,
Parliamentary Joint Committee on Intelligence and Security, Advisory Report
on the Foreign Influence Transparency Scheme Bill 2017 (2018)
at 33 [2.108], 35 [2.115].
[261] Section 616(a) of the
FARA provides that the Attorney General "may withdraw from public
examination the registration statement and other statements of any agent
of a
foreign principal whose activities have ceased to be of a character which
requires registration".
[262] FARA, §616(a).
[263] FARA,
§616(d)(1).
[264] FARA,
§616(d)(2).
[265] FARA, §614(c).
[266] FARA,
§614(b).
[267] See Johns [1993] HCA 56; (1993) 178
CLR 408 at 423, citing Marcel v Commissioner of Police of the Metropolis
[1992] Ch 225 at 234; see also 424, 436, 453, 458, 468; Katsuno v The
Queen [1999] HCA 50; (1999) 199 CLR 40 at 57 [24]; see also 50 [2], 65 [54], 87‑88
[110]‑[111]. See also R v Toohey; Ex parte Northern Land
Council [1981] HCA 74; (1981) 151 CLR 170 at 186-187.
[268] FITS Act,
s 42(2)(b).
[269] Australia, Senate,
Foreign Influence Transparency Scheme Bill 2017, Revised Explanatory
Memorandum at 120 [674].
[270] FITS Act,
s 42(3)(c); see also s 42(2)(g).
[271] See FITS Act,
s 40(2)(b)-(d).
[272] FITS Act,
s 42(2)(e) and (g).
[273] FITS Act,
s 44.
[274] Morton v Union Steamship
Co of New Zealand Ltd [1951] HCA 42; (1951) 83 CLR 402 at 410. See also
Toohey [1981] HCA 74; (1981) 151 CLR 170 at 187; Plaintiff M47/2012 v
Director-General of Security (2012) 251 CLR 1 at 77 [174]. And see
Australian Communist Party v The Commonwealth [1951] HCA 5; (1951) 83 CLR 1 at
205-206, 258, 263.
[275] FITS Act,
s 21(1), table item 3.
[276] FITS Act, s 38;
Disclosure Rules, Pt 2.
[277] McIntyre v Ohio Elections
Commission [1995] USSC 36; (1995) 514 US 334 at 345-346; Buckley v American
Constitutional Law Foundation Inc [1999] USSC 1; (1999) 525 US 182 at 209. See also
Coleman [2004] HCA 39; (2004) 220 CLR 1 at 30 [27]; Hogan [2011] HCA 4; (2011) 243 CLR 506 at
555-556 [95]‑[96]; Wotton (2012) 246 CLR 1 at 16 [30],
30 [78].
[278] See Brown [2017] HCA 43; (2017) 261
CLR 328 at 414 [273]‑[274], 415 [276], but cf 389 [199], 390 [202];
Clubb [2019] HCA 11; (2019) 267 CLR 171 at 197 [55], 213 [123], 227 [170], 230
[180], 232 [182], 301 [375]; Banerji [2019] HCA 23; (2019) 267 CLR 373 at 420 [90].
[279] McIntyre [1995] USSC 36; (1995) 514
US 334 at 345 (footnote omitted).
[280] FITS Act, ss 16
and 18.
[281] FITS Act,
ss 16(2)(d), 34(3)(d), 36(3)(d), 37(5)(d), 39(2)(d), 40.
The Commonwealth accepted that "the level of the burden is connected to"
what information and documents may be required by the Secretary,
but said
that the information that may be required "is not disproportionately
burdensome".
[282] FITS Act, ss 57
and 58. See Brown [2017] HCA 43; (2017) 261 CLR 328 at 357‑358 [81], 359 [87], 460
[411], but cf 408-409 [259]. See also Banerji [2019] HCA 23; (2019) 267 CLR
373 at 403 [39].
[283] FITS Act, s 43;
FITS Rules, s 6.
[284] FITS Act,
s 42.
[285] FITS Act,
s 53.
[286] See Cunliffe v The
Commonwealth [1994] HCA 44; (1994) 182 CLR 272 at 301; see also 341. See also
Federal Election Commission v Massachusetts Citizens for Life Inc [1986] USSC 231; (1986)
479 US 238 at 253‑255, especially at 254; Citizens United v Federal
Election Commission (2010) 558 US 310 at 337-338.
[287] [1995] USSC 36; (1995) 514 US 334 at 351.
See also United States v Rumely [1953] USSC 32; (1953) 345 US 41 at 46.
[288] See Blackstone,
Commentaries on the Laws of England, 2nd ed (rev) (1879), bk 4, ch 11 at
151-152: "freedom of the press" is defined as the right to be free from
previous restraints. See also Cunliffe [1994] HCA 44; (1994) 182 CLR 272 at 299-300,
301, 341; Levy v Victoria [1997] HCA 31; (1997) 189 CLR 579 at 595; Wotton (2012)
246 CLR 1 at 15 [28]; Attorney-General (SA) v Adelaide City Corporation
[2013] HCA 3; (2013) 249 CLR 1 at 62 [133]. cf Communist Party of the United States v
Subversive Activities Control Board [1961] USSC 137; (1961) 367 US 1 at 172.
[289] cf Nebraska Press Assn v
Stuart [1976] USSC 158; (1976) 427 US 539 at 559.
[290] Chemerinsky,
Constitutional Law: Principles and Policies, 3rd ed (2006) at
954.
[291] Rumely [1953] USSC 32; (1953) 345 US
41 at 57.
[292] cf Clubb [2019] HCA 11; (2019)
267 CLR 171 at 228 [172].
[293] See, eg, Rumely
[1953] USSC 32; (1953) 345 US 41 at 57-58; National Association for the Advancement of
Colored People v Alabama [1958] USSC 150; (1958) 357 US 449 at 462-463;
Bates v City of Little Rock [1960] USSC 19; (1960) 361 US 516 at 523-524;
Shelton v Tucker [1960] USSC 167; (1960) 364 US 479 at 485-489; Gibson v Florida
Legislative Investigation Committee [1963] USSC 52; (1963) 372 US 539 at 555-557.
[294] [1992] HCA 45; (1992) 177 CLR 106 at
175.
[295] [2015] HCA 34; (2015) 257 CLR 178 at 265
[244].
[296] ACTV [1992] HCA 45; (1992) 177 CLR
106 at 139.
[297] Brown [2017] HCA 43; (2017) 261 CLR
328 at 477-478 [478]; Clubb [2019] HCA 11; (2019) 267 CLR 171 at
232 [183].
[298] Brown [2017] HCA 43; (2017) 261 CLR
328 at 362 [96]. See also Unions No 1 (2013) 252 CLR 530 at 557 [50].
[299] Brown [2017] HCA 43; (2017) 261 CLR
328 at 432 [321].
[300] Brown [2017] HCA 43; (2017) 261 CLR
328 at 392 [209]; see also 432-433 [322]. See also
McCloy [2015] HCA 34; (2015) 257 CLR 178 at 232 [132]; Unions NSW v New South Wales
[2019] HCA 1; (2019) 264 CLR 595 at 657 [171] ("Unions No 2").
[301] APLA Ltd v Legal
Services Commissioner (NSW) [2005] HCA 44; (2005) 224 CLR 322 at 394 [178]; McCloy
[2015] HCA 34; (2015) 257 CLR 178 at 232 [132]; Brown [2017] HCA 43; (2017) 261 CLR 328 at 363
[101], 391-392 [208], 432 [321]; Unions No 2 [2019] HCA 1; (2019) 264 CLR 595 at 657
[171].
[302] McCloy [2015] HCA 34; (2015) 257 CLR
178 at 231 [130].
[303] McCloy [2015] HCA 34; (2015) 257 CLR
178 at 203 [31]. See also Coleman [2004] HCA 39; (2004) 220 CLR 1 at 50-51 [92]- [96], 78
[196], 82 [211]. cf Palmer v Western Australia [2021] HCA 5; (2021) 95 ALJR 229 at
269 [197]; [2021] HCA 5; 388 ALR 180 at 227-228.
[304] See McCloy [2015] HCA 34; (2015) 257
CLR 178 at 208 [47]; Banerji [2019] HCA 23; (2019) 267 CLR 373 at 423 [100], 438
[153].
[305] Gibb v Federal
Commissioner of Taxation [1966] HCA 74; (1966) 118 CLR 628 at 635; Kelly v
The Queen [2004] HCA 12; (2004) 218 CLR 216 at 245 [84], 253 [103]; Moreton Bay
Regional Council v Mekpine Pty Ltd [2016] HCA 7; (2016) 256 CLR 437 at 451 [61].
[306] Knight [2017] HCA 29; (2017) 261 CLR
306 at 324-325 [32]- [33]; Clubb [2019] HCA 11; (2019) 267 CLR 171 at 192-193
[32]- [36], 216-217 [135]-[138], 248‑249 [230], 287 [329].
[307] Buckley v
Valeo [1976] USSC 24; (1976) 424 US 1 at 64 (footnote omitted).
[308] McCloy [2015] HCA 34; (2015) 257 CLR
178 at 201 [24]; Brown [2017] HCA 43; (2017) 261 CLR 328 at 370 [131]; Unions
No 2 [2019] HCA 1; (2019) 264 CLR 595 at 616 [45], 632 [95]-[96].
[309] Acts Interpretation
Act, s 15A.
[310] Particularly s 11, when
read with the definitions in s 10 of "arrangement", "foreign political
organisation", "foreign principal", and "influence".
[311] Particularly ss 16, 34,
42, 43, 53.
[312] The provisions challenged as
part of its challenge to item 3 of the table in s 21(1), and
identified in LibertyWorks' written submissions, were certain definitions in
s 10, and ss 11-14, 16, 18, 37, 39, 57, 58-59.
[313] Particularly FITS
Act, s 10, definition of "arrangement".
[314] Particularly FITS Act,
s 42(2).
[315] Particularly FITS Act,
ss 16(2)(d), 34(3)(d), 39(2)(d).
[316] Compare Clubb v
Edwards [2019] HCA 11; (2019) 267 CLR 171 at 331‑332 [465]‑[466].
[317] Carter, "Moving Beyond the
Common Law Objection to Structured Proportionality" (2021) 49 Federal Law
Review 73 at 94 (emphasis in original).
[318] Trollope, Orley Farm
(1862), vol 1 at 141.
[319] APLA Ltd v Legal Services
Commissioner (NSW) [2005] HCA 44; (2005) 224 CLR 322 at 350 [27]. See also at 361 [66].
[320] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 400 [33] and the cases footnoted.
[321] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 268 [274], 330-331 [463], 334 [470]. See also
Palmer v Western Australia [2021] HCA 5; (2021) 95 ALJR 229 at 285 [267], 287 [275];
[2021] HCA 5; 388 ALR 180 at 248, 250.
[322] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 341‑343 [491]‑[495]. See also Palmer v
Western Australia [2021] HCA 5; (2021) 95 ALJR 229 at 285 [267]; [2021] HCA 5; 388 ALR 180 at 248.
[323] See Monis v The Queen
(2013) 249 CLR 92 at 214 [347]; Tajjour v New South Wales [2014] HCA 35; (2014) 254 CLR
508 at 550 [36]; McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 211 [58],
217 [81], 270 [258], 285‑286 [328]; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR
328 at 371‑372 [139], 418 [282]; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171
at 270 [277], 337 [478], 339 [484]; Comcare v Banerji [2019] HCA 23; (2019) 267 CLR 373
at 401 [35], 452‑453 [194]; Palmer v Western Australia [2021] HCA 5; (2021) 95
ALJR 229 at 285 [265], 286 [271]; [2021] HCA 5; 388 ALR 180 at 248, 249.
[324] Unions NSW v New South
Wales [2019] HCA 1; (2019) 264 CLR 595 at 657‑660 [173]-[178]; Clubb v
Edwards [2019] HCA 11; (2019) 267 CLR 171 at 327 [454]; Comcare v Banerji [2019] HCA 23; (2019) 267
CLR 373 at 452 [191]. See also McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR
178 at 203 [31]; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 194 [44].
[325] Brown v Tasmania
[2017] HCA 43; (2017) 261 CLR 328 at 364 [104], 376 [156], 416 [277], 432 [319]‑[320];
Unions NSW v New South Wales [2019] HCA 1; (2019) 264 CLR 595 at 655 [165].
[326] Australian Communist
Party v The Commonwealth [1951] HCA 5; (1951) 83 CLR 1.
[327] Unions NSW v New South
Wales [2019] HCA 1; (2019) 264 CLR 595 at 657 [172].
[328] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13148.
[329] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13149.
[330] Australia, House of
Representatives, Parliamentary Debates (Hansard), 26 June 2018
at 6351‑6352.
[331] Australia, House of
Representatives, Parliamentary Debates (Hansard), 7 December 2017 at
13148.
[332] Australia, Senate,
Foreign Influence Transparency Scheme Bill 2017, Revised Explanatory
Memorandum at 72 [401].
[333] Australia, Senate,
Foreign Influence Transparency Scheme Bill 2017, Revised Explanatory
Memorandum at 2 [3].
[334] Meese v Keene [1987] USSC 73; (1987)
481 US 465 at 487, quoting HR Rep No 1381, 75th Cong, 1st Sess (1937)
at 2.
[335] Commonwealth Freighters
Pty Ltd v Sneddon [1959] HCA 11; (1959) 102 CLR 280 at 292.
[336] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 337‑338 [480].
[337] FITS Act, s 10,
definitions of "foreign principal" and "foreign political organisation".
[338] FITS Act, s 10,
definitions of "foreign principal", "foreign government related entity", and
"foreign political organisation".
[339] FITS Act, s 10,
definitions of "foreign principal", "foreign government related entity",
"foreign political organisation", and "foreign government
related
individual".
[340] At [266].
[341] Especially
s 11(1)(a)(i), read with s 10, definition of "arrangement".
[342] Northern Land Council v
Quall (2020) 94 ALJR 904 at 920 [77]; 383 ALR 378 at 397. See also
Petersen v Moloney [1951] HCA 57; (1951) 84 CLR 91 at 94; International Harvester Co
of Australia Pty Ltd v Carrigan's Hazeldene Pastoral Co [1958] HCA 16; (1958) 100 CLR 644
at 652; Scott v Davis [2000] HCA 52; (2000) 204 CLR 333 at 408 [227]; Australian
Competition and Consumer Commission v Flight Centre Travel Group Ltd [2016] HCA 49; (2016)
261 CLR 203 at 215 [15]; Watts and Reynolds, Bowstead and Reynolds on
Agency, 22nd ed (2021) at 4-5 [1-005], 22-23 [1-027].
[343] Country Care Group Pty
Ltd v Director of Public Prosecutions (Cth) [2020] FCAFC 30; (2020) 275 FCR 342 at 354
[60].
[344] Compare the Foreign
Agents Registration Act of 1938 (22 USC §§611-621), §611(c),
and the criticisms of the expanded meaning given in Attorney General of the
United States v Irish Northern Aid Committee [1982] USCA2 5; (1982) 668 F 2d 159: Law, "The
Foreign Agents Registration Act: A New Standard for Determining Agency" (1983) 6
Fordham International Law Journal 365.
[345] Australia, Parliament,
Parliamentary Joint Committee on Intelligence and Security, Advisory Report
on the Foreign Influence Transparency Scheme Bill 2017 (2018) at 103
[4.144].
[346] FITS Act, s 10,
definitions of "foreign principal", "foreign government related entity", and
"foreign political organisation".
[347] FITS Act, s 10,
definition of "influence".
[348] FITS Act, ss 12(1)(b),
12(2).
[349] See Associations
Incorporation Act 1981 (Qld), s 21.
[350] See also FITS Act,
ss 14(a), 14(b)(i).
[351] Australia, Senate,
Foreign Influence Transparency Scheme Bill 2017, Revised Explanatory
Memorandum at 72 [401].
[352] See Citizens United v
Federal Election Commission (2010) 558 US 310 at 341; National
Institute of Family and Life Advocates v Becerra (2018) 138 S Ct 2361
at 2378.
[353] Jeffries, "Rethinking Prior
Restraint" (1983) 92 Yale Law Journal 409 at 420.
[354] See Blackstone,
Commentaries on the Laws of England (1769), bk 4, ch 11
at 151‑152.
[355] FITS Act, ss 16(2)(d),
39(2)(d).
[356] FITS Act,
s 34(3)(d).
[357] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 317-318 [424], discussing Newcastle and
Hunter River Steamship Co Ltd v Attorney-General for the Commonwealth [1921] HCA 31; (1921)
29 CLR 357. See also Bank of NSW v The Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at
252.
[358] Melbourne Corporation v
The Commonwealth [1947] HCA 26; (1947) 74 CLR 31 at 76. See also Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 369.
[359] Brownells Ltd v
Ironmongers' Wages Board [1950] HCA 3; (1950) 81 CLR 108 at 120. See also R v Toohey;
Ex parte Northern Land Council [1981] HCA 74; (1981) 151 CLR 170 at 186‑187;
Walton v Gardiner (1993) 177 CLR 378 at 409.
[360] Johns v Australian
Securities Commission [1993] HCA 56; (1993) 178 CLR 408 at 424. See also at 436, 453, 458,
468. See, further, Katsuno v The Queen [1999] HCA 50; (1999) 199 CLR 40 at 57 [24];
Smethurst v Commissioner of Australian Federal Police [2020] HCA 14; (2020) 94 ALJR 502
at 521 [55]‑[56], 539 [151]‑[152]; [2020] HCA 14; 376 ALR 575 at 589‑590,
613‑614.
[361] FITS Act, s 47.
[362] FITS Act, s 53, read
with Privacy Act 1988 (Cth), s 6(1), definition of "enforcement
body".
[363] Foreign Influence
Transparency Scheme (Disclosure in Communications Activity) Rules
2018 (Cth).
[364] FITS Act, s 34.
[365] FITS Act, ss 40(1),
40(2).
[366] FITS Act, s 57.
[367] FITS Act,
s 58.
[368] FITS Act, s 59.
[369] Foreign Influence
Transparency Scheme Rules 2018 (Cth), s 6. See also s 6A.
[370] FITS Act,
s 42(2)(g).
[371] Foreign Influence
Transparency Scheme Rules 2018 (Cth), ss 6(k), 6(m), 6(n),
6(o).
[372] FITS Act, ss 34(3)(d),
39(2)(d).
[373] Australia, Parliament,
Parliamentary Joint Committee on Intelligence and Security, Advisory Report
on the Foreign Influence Transparency Scheme Bill 2017 (2018) at 138
[6.53].
[374] Lange v Australian
Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 at 567.
[375] Including any abridgement in
State legislation, when the First Amendment is read with the Fourteenth
Amendment.
[376] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 338-339 [483], citing McCullen v Coakley (2014)
573 US 464.
[377] Australia, Parliament,
Parliamentary Joint Committee on Intelligence and Security, Advisory Report
on the Foreign Influence Transparency Scheme Bill 2017 (2018) at 33
[2.108], 35 [2.115].
[378] Australia, Parliament,
Parliamentary Joint Committee on Intelligence and Security, Advisory Report
on the Foreign Influence Transparency Scheme Bill 2017 (2018),
Appendix C, Table 3.1.
[379] 22 USC
§§611-621.
[380] See Getmanenko, "Freedom
from the Press: Why the Federal Propaganda Prohibition Act of 2005 is a Good
Idea" (2009) 114 Penn State Law Review 251 at 279.
[381] Robinson, "'Foreign Agents'
in an Interconnected World: FARA and the Weaponization of Transparency"
(2020) 69 Duke Law Journal 1075 at 1081.
[382] Roth, "The First Amendment
in the Foreign Affairs Realm: 'Domesticating' the Restrictions on Citizen
Participation" (1993) 2 Temple Political & Civil Rights Law
Review 255 at 264.
[383] Compare Clubb v
Edwards [2019] HCA 11; (2019) 267 CLR 171 at 338 [481].
[384] See fn 312 above.
[385] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 452 [192].
[386] Read with the Foreign
Influence Transparency Scheme (Disclosure in Communications Activity) Rules
2018 (Cth).
[387] McCloy v New South
Wales [2015] HCA 34; (2015) 257 CLR 178 at 193‑195 [2] per French CJ, Kiefel,
Bell and Keane JJ.
[388] 22 USC
§§611-621.
[389] 22 USC §§611,
612.
[390] 22 USC §612.
[391] 22 USC §618.
[392] [1943] USSC 55; (1943) 318 US 236 at
241.
[393] 22 USC §611(c)(1).
[394] (1951) 97 F Supp 255
(DCDC).
[395] (1951) 97 F Supp 255 (DCDC)
at 262.
[396] [1950] USSC 56; (1950) 339 US 382.
[397] [1950] USSC 56; (1950) 339 US 382 at
394.
[398] [1943] USSC 55; (1943) 318 US 236 at
251.
[399] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 394-396 [19]- [20] per Kiefel CJ, Bell, Keane and
Nettle JJ, 434 [135] per Gordon J.
[400] Parliamentary Joint
Committee on Intelligence and Security, Advisory Report on the Foreign
Influence Transparency Scheme Bill 2017 (June 2018) at 35 [2.115].
[401] Australia, House of
Representatives, Parliamentary Debates (Hansard), 26 June 2018 at
6400.
[402] At [53], [55], [58],
[62].
[403] Australia, Senate,
Foreign Influence Transparency Scheme Bill 2017, Revised Explanatory
Memorandum at 2 [3].
[404] Australian Competition
and Consumer Commission v Channel Seven Brisbane Pty Ltd [2009] HCA 19; (2009) 239 CLR 305
at 322 [48] per French CJ and Kiefel J.
[405] Country Care Group Pty
Ltd v Director of Public Prosecutions (Cth) [2020] FCAFC 30; (2020) 275 FCR 342 at
353-354 [60] per Allsop CJ, Wigney and Abraham JJ.
[406] Australian Competition
and Consumer Commission v Channel Seven Brisbane Pty Ltd [2009] HCA 19; (2009) 239 CLR 305
at 322 [48] per French CJ and Kiefel J, citing Australian Competition and
Consumer Commission v Leahy Petroleum Pty Ltd [2007] FCA 794; (2007) 160 FCR 321 at 334-335
[35]- [37] per Gray J; Apco Service Stations Pty Ltd v Australian Competition
and Consumer Commission [2005] FCAFC 161; (2005) 159 FCR 452 at 464 [46] per Heerey, Hely and
Gyles JJ; Rural Press Ltd v Australian Competition and Consumer
Commission [2002] FCAFC 213; (2002) 118 FCR 236 at 257‑258 [79] per Whitlam,
Sackville and Gyles JJ; Australian Competition and Consumer Commission v
Amcor Printing Papers Group Ltd [2000] FCA 17; (2000) 169 ALR 344 at 360 [75] per Sackville
J; Trade Practices Commission v Service Station Association Ltd [1993] FCA 405; (1993) 44
FCR 206 at 230-231 per Lockhart J, Spender and Lee JJ agreeing; Trade
Practices Commission v Email Ltd [1980] FCA 86; (1980) 43 FLR 383 at 385-386 per
Lockhart J; Trade Practices Commission v Nicholas Enterprises Pty Ltd
[No 2] [1979] FCA 51; (1979) 40 FLR 83 at 89-90 per Fisher J; Top Performance Motors Pty
Ltd v Ira Berk (Queensland) Pty Ltd (1975) 24 FLR 286 at 290-292 per
Smithers J.
[407] The other obligations are
described by Kiefel CJ, Keane and Gleeson JJ at [36]-[38].
[408] FITS Act, s
11(1)(b).
[409] At [39].
[410] Owners of "Shin Kobe
Maru" v Empire Shipping Co Inc (1994) 181 CLR 404 at 419 per Mason CJ,
Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ, citing Wacal
Developments Pty Ltd v Realty Developments Pty Ltd [1978] HCA 30; (1978) 140 CLR 503.
[411] FITS Act, s
45(1).
[412] [2015] HCA 34; (2015) 257 CLR 178 at
193-195 [2] per French CJ, Kiefel, Bell and Keane JJ.
[413] [1950] USSC 56; (1950) 339 US 382 at
394.
[414] [1943] USSC 55; (1943) 318 US 236 at
251.
[415] Australian Capital
Television Pty Ltd v The Commonwealth [1992] HCA 45; (1992) 177 CLR 106 at 159.
[416] cf Harisiades v
Shaughnessy [1952] USSC 51; (1952) 342 US 580.
[417] [2019] HCA 11; (2019) 267 CLR 171 at 186
[5] per Kiefel CJ, Bell and Keane JJ.
[418] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 400 [33] per Kiefel CJ, Bell, Keane and Nettle
JJ, citing Tajjour v New South Wales [2014] HCA 35; (2014) 254 CLR 508 at 563 [81]- [82]
per Hayne J; McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 217 [80]
per French CJ, Kiefel, Bell and Keane JJ, 232-233 [132]‑[133] per
Gageler J, 262 [234] per Nettle J; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at
370 [132]‑[133] per Kiefel CJ, Bell and Keane JJ, 418 [281] per
Nettle J; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 186 [6] per Kiefel CJ,
Bell and Keane JJ, 264 [266(2)] per Nettle J, 330-331 [463] per
Edelman J.
[419] At [78]-[85].
[420] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 186 [6] per Kiefel CJ, Bell and
Keane JJ.
[421] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 408 [53] per Gageler J.
[422] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 186 [6] per Kiefel CJ, Bell and Keane JJ.
[423] Comcare v Banerji
[2019] HCA 23; (2019) 267 CLR 373 at 402-403 [38] per Kiefel CJ, Bell, Keane and
Nettle JJ, citing Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at 186 [6], 199-200
[66]-[69], 209 [102] per Kiefel CJ, Bell and Keane JJ, 266-269 [270]-[275] per
Nettle J, 344 [497]-[498] per Edelman J.
See also Davis v The
Commonwealth [1988] HCA 63; (1988) 166 CLR 79 at 99-100 per Mason CJ, Deane and Gaudron JJ
(Wilson and Dawson JJ agreeing at 101); Nationwide News Pty Ltd v Wills
[1992] HCA 46; (1992) 177 CLR 1 at 30‑31, 34 per Mason CJ, 78 per Deane and
Toohey JJ, 94-95 per Gaudron J, 101-102 per McHugh J; Cunliffe v
The Commonwealth [1994] HCA 44; (1994) 182 CLR 272 at 324 per Brennan J; McCloy v
New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 219 [87], 220 [91] per French CJ,
Kiefel, Bell and Keane JJ; Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at
422-423 [290] per Nettle J.
[424] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 200 [69] per Kiefel CJ, Bell and Keane JJ, citing
Brown v Tasmania [2017] HCA 43; (2017) 261 CLR 328 at 422-423 [290] per Nettle J
and McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at 219-220 [89]- [92] per
French CJ, Kiefel, Bell and Keane JJ.
[425] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 201 [72] per Kiefel CJ, Bell and Keane
JJ.
[426] Brown v Tasmania
[2017] HCA 43; (2017) 261 CLR 328 at 365 [109] per Kiefel CJ, Bell and
Keane JJ.
[427] [2017] HCA 43; (2017) 261 CLR 328 at
422 [290], citing McCloy v New South Wales [2015] HCA 34; (2015) 257 CLR 178 at
219-220 [89]- [92] per French CJ, Kiefel, Bell and Keane JJ; Kiefel,
"Section 92: Markets, Protectionism and Proportionality – Australian and
European Perspectives" [2010] MonashULawRw 25; (2010) 36(2) Monash University Law Review 1 at
12.
[428] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 341‑342 [492].
[429] Clubb v Edwards
[2019] HCA 11; (2019) 267 CLR 171 at 342 [493].
[430] Brown v Tasmania
[2017] HCA 43; (2017) 261 CLR 328 at 422 [290], citing McCloy v New South Wales
[2015] HCA 34; (2015) 257 CLR 178 at 219-220 [89]- [92] per French CJ, Kiefel, Bell and
Keane JJ; Kiefel, "Section 92: Markets, Protectionism and Proportionality
– Australian and
European Perspectives" [2010] MonashULawRw 25; (2010) 36(2) Monash University
Law Review 1 at 12.
[431] cf Knight v Victoria
[2017] HCA 29; (2017) 261 CLR 306 at 324-325 [32]- [33] per Kiefel CJ, Bell, Gageler, Keane,
Nettle, Gordon and Edelman JJ; Clubb v Edwards [2019] HCA 11; (2019) 267 CLR 171 at
192-193 [32]- [36] per Kiefel CJ, Bell and Keane JJ, 216-217 [135]-[138] per
Gageler J, 248-249 [230] per Nettle J, 287 [329] per Gordon J.
[432] [1994] HCA 46; (1994) 182 CLR 104 at
193-194.
[433] See Australian Capital
Television Pty Ltd v The Commonwealth [1992] HCA 45; (1992) 177 CLR 106 at 186; and see
also at 133-134 per Mason CJ.
[434] See, eg, McGraw-Hinds
(Aust) Pty Ltd v Smith [1979] HCA 19; (1979) 144 CLR 633 at 670 per Murphy J.
[435] Amalgamated Society of
Engineers v Adelaide Steamship Co Ltd [1920] HCA 54; (1920) 28 CLR 129.
[436] See, eg, Craven, "The Crisis
of Constitutional Literalism in Australia", in Lee and Winterton (eds),
Australian Constitutional Perspectives (1992) 1 at 4-9.
[437] See West v Commissioner
of Taxation (NSW) [1937] HCA 26; (1937) 56 CLR 657 at 681-682 per Dixon J.
[438] Australian Capital
Television Pty Ltd v The Commonwealth [1992] HCA 45; (1992) 177 CLR 106 at 187. See also
Goldsworthy, "Constitutional Implications Revisited" [2011] UQLawJl 2; (2011) 30 University of
Queensland Law Journal 9 at 28-29.
[439] cf Plaintiff M68/2015 v
Minister for Immigration and Border Protection [2016] HCA 1; (2016) 257 CLR 42 at 80 [77]
per Bell J, citing Plaintiff S156/2013 v Minister for Immigration and Border
Protection [2014] HCA 22; (2014) 254 CLR 28 at 43 [26]. See also Grain Pool of Western
Australia v The Commonwealth (2000) 202 CLR 479 at 492 [16] per Gleeson CJ,
Gaudron, McHugh, Gummow, Hayne and Callinan JJ; New South Wales v The
Commonwealth [2006] HCA 52; (2006) 229 CLR 1 at 143 [275] per Gleeson CJ, Gummow, Hayne,
Heydon and Crennan JJ.
[440] cf Gerner v Victoria
(2020) 95 ALJR 107 at 112-113 [18] per Kiefel CJ, Gageler, Keane, Gordon and
Edelman JJ; 385 ALR 394 at 399.
[441] (2001) 208 CLR 199 at
330-339 [337]-[348].
[442] (2013) 249 CLR 92 at 181-184
[243]-[251].