SUNRISE ADELAIDE TRANSPORT PTY LTD v NATIONAL HEAVY VEHICLE REGULATOR [2026] SADC 52
Applicant: SUNRISE ADELAIDE TRANSPORT PTY LTD Counsel: MS K TEMPLE - Solicitor:
KJK LEGAL
Respondent: NATIONAL HEAVY VEHICLE REGULATOR Counsel: MR T RICE
Hearing Date/s: 06/05/2026
File No/s: CIV-26-005557
B
DISTRICT COURT OF SOUTH AUSTRALIA
(Civil)
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply
to this judgment. The onus remains on any person using material in the judgment to ensure that the intended use of that material does not breach
any such order or provision. Further enquiries may be directed to the Registry of the Court in which it was generated.
SUNRISE ADELAIDE TRANSPORT PTY LTD v NATIONAL HEAVY
VEHICLE REGULATOR
[2026] SADC 52
Judgment of Her Honour Judge Mackenzie
15 May 2026
ADMINISTRATIVE LAW — STAY — HEAVY VEHICLE NATIONAL LAW —
S 642 — “PUBLIC SAFETY GROUND” — JURISDICTIONAL BAR
The applicant, a heavy vehicle operator, sought a stay of a decision cancelling its heavy vehicle
accreditations pending internal review of the regulator’s decision. The respondent, being the
regulator, contended that the decision was made on the basis of a “public safety ground” within s 640
of the Heavy Vehicle National Law (HVNL), such that a stay application could not be entertained
under s 642 of the HVNL.
Held (dismissing the stay application):
1. The question whether a decision was made on the basis of a public safety ground is an anterior
jurisdictional question to be determined by reference to the decision-maker’s reasons, read fairly
and as a whole (Wu Shan Liang; Yusuf).
2. A decision may fall within s 640 of the HVNL notwithstanding the reasons fail to express the
precise phrase “significant risk to public safety” provided the reasons disclose, in substance, that
cancellation was considered necessary to prevent an unacceptable risk to public safety.
3. On a proper reading of the regulator’s reasons for cancelling the accreditations, the decision was
made on the basis of a public safety ground. Section 642 was therefore not engaged and the Court
lacked power to grant a stay.
4. It was unnecessary and inappropriate to consider issues of utility, or discretionary factors relevant
to granting a stay, once the Court concluded it lacked jurisdiction under s 642. Those matters do
not arise where the statutory pre-condition is not met.
Heavy Vehicle National Law (South Australia) Act 2013 (SA); Heavy Vehicle National Law
(Queensland), referred to.
Milko Livestock Pty Ltd v NHVR [2026] QCAT 112; Minister for Immigration and Ethnic Affairs v
Wu Shan Liang (1996) 185 CLR 259; [1996] HCA 6; Hossain v Minister for Immigration and Border
Protection (2018) 264 CLR 123; Minister for Immigration and Multicultural Affairs v Yusuf (2001)
206 CLR 323; Minister for Immigration and Border Protection v SZMTA (2019) 264 CLR 421;
Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355, applied.
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SUNRISE ADELAIDE TRANSPORT PTY LTD v NATIONAL HEAVY
VEHICLE REGULATOR
[2026] SADC 52
Introduction
1 Sunrise Adelaide Transport Pty Ltd (Sunrise) seeks an urgent stay of the
decision of the National Heavy Vehicle Regulator (Regulator) to cancel its heavy
vehicle accreditations, which decision has been operative since 1 May 2026.
Sunrise has applied to the Regulator for internal review of the decision and seeks
a stay pending the outcome of that internal review.1
2 The accreditations enable Sunrise to be compliant with the regulatory regime
by adopting alternative practices tailored to its business operations. Sunrise claims
that the cancellation of its accreditations will cause it to incur significant financial
losses (in the order of $300,000 to $350,000 per week) impacting the job security
of its 55 employees, and potentially causing it to shut down its business operations.
3 Sunrise claims that without the accreditations it is unable to meet freight
deliveries for its clients within required timeframes. Without basic fatigue
management accreditation, which allows drivers to work 14 hours (instead of 12
hours) in every 24 hours, Sunrise submits there are particular problems for its
Adelaide to Sydney (and return) route. This is because from the Renmark depot
the trip to Sydney is 12.5 to 13 hours – meaning drivers will have to rest for seven
hours only 30 minutes to one hour from their destination. Sunrise claims there are
also flow-on impacts for transport to and from Perth.
4 The Regulator adheres to its decision to cancel the accreditations and resists
the stay application. The Regulator points to the pre-condition for a stay
application under section 642(1)(a) of the Heavy Vehicle National Law (HVNL)
set out under the Schedule to the Heavy Vehicle National Law (South Australia)
Act 2013 (SA) (HVNL Act), which provides that section 642 (the provision
enabling a stay of a reviewable decision) does not apply where the decision is a
decision made on the basis of a public safety ground. A “public safety ground” is
defined in section 640, by reference to the Regulator being satisfied that making
the decision is necessary to prevent a significant risk to public safety.
5 The Regulator contends that its written reasons for cancellation make it clear
that there were two public safety grounds upon which the decision was based –
being that public safety has been endangered, or is likely to be endangered, because
of: (i) Sunrise’s Mass Maintenance and Maintenance Management accreditation;
and (ii) its Basic Fatigue Management (BFM) accreditation. As such, the
Regulator contends that the Court has no jurisdiction to entertain the stay
application and Sunrise’s application is ultra vires and should be dismissed.2
1 Separate, but equivalent, stay provisions operate if the decision on review is appealed.
2 Response (FDN 7).
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[2026] SADC 52
2
6 Not forming part of its Response but raised in its oral and written
submissions, the Regulator also contends that the application is inutile because the
cancellation decision commenced on 1 May 2026 and the Court does not have
power to retrospectively make a stay order.
7 The questions for determination of the stay application are therefore:
(1) Was the cancellation decision made on the basis of a public safety
ground such that the pre-condition for entertaining the stay application
under section 642(1)(a) has not been met?
(2) In any event, is the stay application inutile because the stay could only
operate prospectively and the accreditations were cancelled with effect
from 1 May 2026?
(3) If the answer to both of preceding questions is no, a question remains
as to whether the Court ought to exercise its discretion to grant a stay
in the terms sought by Sunrise?
Regulatory framework
8 The application arises in the context of the regulation of the HVNL and issues
with Sunrise’s compliance with the National Heavy Vehicle Accreditation System
(Accreditation System).
9 The HVNL operates within a largely national framework, which commenced
in 2014. The HVNL is in force in all Australian States and Territories, other than
Western Australia and the Northern Territory. Queensland is the host jurisdiction
(the HVNL appears as a schedule to the Queensland Act3), and other participating
jurisdictions broadly adopt it via their own application legislation.
10 The object of the HVNL is to establish a national scheme for facilitating and
regulating the use of heavy vehicles on roads in a way that:4
(a) promotes public safety; and
(b) manages the impact of heavy vehicles on the environment, road infrastructure and
public amenity; and
(c) promotes industry productivity and efficiency in the road transport of goods and
passengers by heavy vehicles; and
(d) encourages and promotes productive, efficient, innovative and safe business
practices.
3 Heavy Vehicle National Law (Queensland).
4 HVNL, s 3.
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[2026] SADC 52
3
11 Under the HVNL the Regulator is vested with functions to ensure that this
object is achieved.5 The regulatory framework also prescribes requirements about:6
(i) the standards heavy vehicles must meet when on roads;
(ii) the maximum permissible mass and dimensions of heavy vehicles used on roads;
(iii) securing and restraining loads on heavy vehicles used on roads;
(iv) preventing drivers of heavy vehicles exceeding speed limits;
(v) preventing drivers of heavy vehicles from driving while fatigued;
12 The Accreditation System allows operators of heavy vehicles who adopt best
practices directed at the object of the HVNL (set out above) to be subject to
alternative requirements more suited to the operators’ business operations.7 The
Regulator gave evidence that at 30 June 2025 there were 275,294 registered heavy
vehicle operators, with only 8,969 (representing 3.2%) holding accreditations and
only 3,303 (representing 1.19%) with accreditations for BFM and/or Advanced
Fatigue Management (AFM).8
13 The Regulator has power under section 473(1) of the HVNL to amend,
suspend or cancel accreditation on the Regulator’s initiative. Each of the following
is a ground for amending, suspending or cancelling accreditation: (emphasis
added)
(a) the accreditation was granted because of a document or representation that was:
(i) false or misleading; or
(ii) obtained or made in an improper way;
(b) the holder of the accreditation has contravened a condition of the accreditation;
(c) the holder of the accreditation, or an associate of the holder, has been convicted of—
(i) an offence against this Law or a previous corresponding law; or
(ii) an offence involving fraud or dishonesty punishable on conviction by
imprisonment of 6 months or more, whether committed in this jurisdiction or
elsewhere;
(d) since the accreditation was granted, there has been a change in the circumstances
that were relevant to the Regulator's decision to grant the accreditation and, had the
changed circumstances existed when the accreditation was granted, the Regulator
would not have granted the accreditation, or would have granted the accreditation
subject to conditions or different conditions;
5 HVNL, s4(a).
6 HVNL, s 4(c).
7 HVNL, s 4(e)(ii).
8 Exhibit R4 at [14]-[15].
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[2026] SADC 52
4
(e) for a maintenance management accreditation or mass management accreditation -
(i) public safety has been endangered, or is likely to be endangered, because
of the accreditation; or
(ii) road infrastructure has been damaged, or is likely to be damaged, because of
the accreditation;
(f) for a BFM accreditation or AFM accreditation – public safety has been
endangered, or is likely to be endangered, because of the accreditation;
(g) the Regulator considers it necessary in the public interest.
Background to the stay application
14 On 24 April 2026 the Regulator decided to cancel the accreditations
previously held by Sunrise in Mass Management, Maintenance Management and
BFM modules of the Accreditation System. The Regulator gave detailed written
reasons for its decision. The decision took effect on 1 May 2026.
15 On 29 April 2026 Sunrise sought internal review of the decision to cancel its
accreditations pursuant to section 641 of the HNVL. There is no dispute that the
Regulator’s decision is a “Reviewable Decision” under the HNVL. Under section
645(1) of the HVNL the Regulator must make its decision on the internal review
by 27 May 2026 (being within 28 days of the application for internal review).9
16 On 30 April 2026 Sunrise filed an originating application in this Court
seeking a stay of the Regulator’s cancellation decision pursuant to section 642(2)
of the HVNL. Section 642 provides: (emphasis added)
642—Stay of reviewable decisions made by Regulator or authorised officer
(1) This section applies to—
(a) a reviewable decision made by the Regulator other than a decision made on
the basis of a public safety ground; or
(b) a reviewable decision made by an authorised officer.
(2) If a person makes a review application for the reviewable decision, the person may
immediately apply for a stay of the decision to the relevant appeal body.
(3) The relevant appeal body may stay the reviewable decision to secure the
effectiveness of the review and any later appeal to the body.
(4) In setting the time for hearing the stay application, the relevant appeal body must
allow at least 3 business days between the day the application is filed with it and the
hearing day.
(5) The Regulator is a party to the application.
9 Also see HVNL, s 645(6)(b) (definition of “prescribed period”).
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[2026] SADC 52
5
(6) The person must serve a copy of the application showing the time and place of the
hearing, and any document filed in the relevant appeal body with the application, on
the Regulator at least 2 business days before the hearing.
(7) The stay—
(a) may be given on conditions the relevant appeal body considers appropriate;
and
(b) operates for the period specified by the relevant appeal body; and
(c) may be revoked or amended by the relevant appeal body.
(8) The period of a stay under this section must not extend past the time when the
reviewer reviews the reviewable decision and any later period the relevant appeal
body allows the applicant to enable the applicant to appeal against the decision.
17 Section 640 states that the reference to “public safety ground” requires the
Regulator being satisfied that making the decision is necessary to prevent a
significant risk to public safety.10
18 “Public safety” is defined under section 5 of the HVNL to mean:
the safety of persons or property, including the safety of—
(a) the drivers of, and passengers and other persons in, vehicles and combinations; and
(b) persons or property in or in the vicinity of, or likely to be in or in the vicinity of, road
infrastructure and public places; and
(c) vehicles and combinations and any loads in them;
Hearing of the stay application
19 It is uncontroversial that this Court is a relevant appeal body for the purposes
of section 642.11 The application was heard before another judge of this Court on
6 May 2026, who for reasons unconnected to the application, was not in a position
to be able to deliver this judgment. I have had the benefit of reading the transcript
from the hearing.12 I also have the benefit of substantive written submissions of the
parties, including submissions made following the hearing of the application.13 I
have also read the originating application, the response and the affidavits tendered
by the parties.
20 The following affidavits were tendered by Sunrise:
an affidavit of Sharon Middleton made on 29 April 2026;14
10 NHVL, s 640.
11 HVNL Act, s 10.
12 As corrected on 12 May 2026.
13 FDN 9, FDN 11 and FDN 13.
14 Exhibit A1.
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[2026] SADC 52
6
two affidavits of Mr Harsimranjit Singh made on 30 April and 5 May
2026 respectively.15
21 The Regulator tendered an affidavit of Mr Steven James Miller made on 6
May 2026.16
22 These affidavits were received into evidence and there was no challenge. No
one was cross examined.
23 Ms Middleton’s affidavit describes the relationship between her road
transport company, Whiteline Transport (Aust.) Pty. Ltd, and Sunrise, where
Sunrise has been engaged as a tow haulier to Sydney since 2022 and in more recent
times to Perth. She describes the impact of Sunrise losing its accreditations, stating
that “Sunrise Adelaide will simply not be able to perform work for us, and we will
have no choice but to terminate their services”.17
24 Mr Singh is a director of Sunrise and deposed to the operations of Sunrise,
its accreditations and the significant financial and other impacts on its business
operations, employees and others of the Regulator’s cancellation decision. His first
affidavit also set out the compliance arrangements that Sunrise has in place and
traversed the interactions with the Regulator leading to the cancellation decision.
Annexures to his first affidavit included:
• the Regulator’s decision to cancel the accreditations dated 24 April
2026;
• the certificates of accreditation held by Sunrise prior to cancellation;
• a Proposed Action Notice issued by the Regulator to Sunrise on 10
December 2025 and Sunrise’s response of 2 February 2026;
• Sunrise’s application for internal review of the cancellation decision
dated 29 April 2026, which enclosed numerous large annexures in
support of submissions on the merits review of the decision; and
• other documents and correspondence pointing to matters of compliance
history and the impact of cancellation on Sunrise’s business.
25 In his second affidavit, Mr Singh sought to correct some of his estimations
about the number of trips and distances travelled by vehicles in Sunrise’s fleet,
confirming that annual distance travelled totals approximately “12 million
kilometres”, including ad hoc work, and involves about “12,500 linehaul
movements”.18
15 Exhibits A2 and A3 respectively.
16 Exhibit R4.
17 Exhibit A1 at [6].
18 Exhibit A3 at [9].
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[2026] SADC 52
7
26 Mr Miller’s affidavit relevantly details the experience of the Regulator in
relation to this matter. Mr Miller’s evidence explains that he is a senior officer
responsible for overseeing accreditation and that, although he was not the original
decision‑maker, he is familiar with the decision to cancel Sunrise’s accreditations.
He outlines the regulatory framework and purpose of the Accreditation System,
noting that most operators lawfully operate without accreditation, and observing
that Sunrise is now also subject to ordinary requirements.
27 Mr Miller specifically sought to respond to Mr Singh’s evidence by detailing
repeated audit non‑conformances, failures to close corrective actions on time,
inaccurate internal records, and noting a high rate of detected non‑compliance
during Regulator interceptions, including numerous fatigue, maintenance and
mass‑related offences. Mr Miller emphasises that accreditation gives operational
concessions that increase public safety risks if systems fail, and stated that, given
Sunrise’s “sustained and systemic non‑compliance” despite lesser interventions,
the Regulator considers “continuation of the accreditations would pose an ongoing
and unacceptable risk to public safety”.
Was the cancellation decision made on the basis of a “public safety ground”?
28 The threshold question for determination is whether the Regulator’s decision
to cancel Sunrise’s accreditations by its notice of 24 April 2026 was made on the
basis of a public safety ground. If so, a stay cannot be entertained by operation of
section 642(1)(a) of the HVNL.
Sunrise’s submissions
29 On this issue, Sunrise submitted that the Regulator had not, in fact or in law,
made the cancellation decision “on the basis of a public safety ground” within the
meaning of sections 640 and 642 of the HVNL. As a result, Sunrise said that the
exclusionary clause in section 642(1)(a) did not operate, and the Court retained
power to grant a stay.
30 Sunrise emphasised that the public safety exclusion is a jurisdictional fact,
and the Court must be satisfied that the Regulator actually made the decision
because it was satisfied there was a significant risk to public safety, not merely
because the subject matter involved safety regulation. In her oral submissions,
counsel for Sunrise also stressed that the Court must look to what the Regulator
actually decided, not what might be inferred after the event and once litigation has
commenced.19
31 Sunrise pointed to the reasons for cancellation which did not expressly state
that the Regulator was satisfied the accreditation posed a “significant risk to public
safety”. Sunrise said that the Regulator did not identify or apply section 640, nor
express the requisite statutory satisfaction required to engage the public‑safety bar
19 T11.6-10.
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[2026] SADC 52
8
to a stay. Sunrise maintained that general references to safety, compliance, or
regulatory objectives are insufficient to trigger the bar in section 642(1)(a).
32 Counsel for Sunrise emphasised the language used by Parliament under: (i)
paragraphs (e) and (f) of section 473(1), which both adopt the words: “public safety
has been endangered, or is likely to be endangered, because of the accreditation”;
and (ii) the different language adopted under section 642(1)(a), which by reference
to “public safety ground” incorporates the words from the definition in section
640: “being satisfied that making the decision is necessary to prevent a significant
risk to public safety”. Counsel for Sunrise submitted that these were two different
formulations for intentionally different threshold tests that had been deliberately
chosen by Parliament, and that satisfaction of the lower one (for section 473) did
not equate to the other higher one (for section 640) automatically being satisfied.20
33 Sunrise also relied upon the context of the HVNL. In particular, counsel for
Sunrise noted that various provisions in Chapters 4 (Vehicle operations – mass,
dimension and loading) and 6 (Vehicle operations – driver fatigue) of the HVNL
adopted the express phrase “significant risk to public safety”.21 For example,
section 177 provides a ground for the amending or cancelling of a mass or
dimension authority if: “the use of heavy vehicles on a road under the authority
has caused, or is likely to cause, a significant risk to public safety”. Relevantly,
such an amendment or cancellation decision is also a “reviewable decision” for the
purposes of section 642.22 This she contended was squarely within the scope of the
exclusion under section 642(1)(a), and contrasts to the “endangering of public
safety” formulation under paragraphs (e) and (f) of section 473(1).
34 In support of this narrow construction, and noting the special provisions for
the use of extrinsic material to interpret the HNVL,23 Sunrise pointed to the second
reading speech describing the proposed operation of section 642, particularly the
following passage:24
Section 642 allows a person who applied for review of a reviewable decision of the
Regulator … to apply to the relevant appeal body for a stay of the decision being reviewed.
Reviewable decisions made on the basis of a public safety ground are excluded as it is not
appropriate for decisions to amend or cancel an exemption or a mass or dimension authority
for public safety reasons to be stayed.
35 Counsel for Sunrise pointed to this passage being consistent with the types
of decision-making under Chapters 4 and 6 of the HVNL, and not to decision-
making under Chapter 8 (Accreditation).
20 T12.2-16.
21 T8.15-16 and T8.30-35: HNVL, ss 118, 124, 139, 145, 154, 156A, 163, 173, 174, 177, 178, 358 and
362.
22 HVNL, Sch. 3.
23 HVNL, Sch. 1, s 8(2).
24 South Australia, Parliamentary Debates, House of Assembly, 2 May 2013 (Hon. A Koutsantonis,
Minister for Transport and Infrastructure).
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[2026] SADC 52
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Regulator’s submissions
36 The Regulator relies upon the written reasons for the cancellation decision.25
The Regulator contends that because those reasons expressly rely upon sections
473(1)(e)(i) and (f) of the HVNL,26 which each provide stand-alone grounds for
cancellation where public safety “has been or is likely to be endangered”; those
grounds represent central grounds, and not just incidental grounds, to the
Regulator’s decision.
37 The Regulator submitted in reading the reasons for the cancellation decision
fairly, and as a whole, and adopting the orthodox “beneficial construction” of
administrative reasons, the Regulator was plainly satisfied that cancellation was
necessary to prevent a significant risk to public safety within the meaning of
section 640 of the HVNL, even though the precise statutory phrase is not expressly
repeated in those reasons.
38 Further, the Regulator maintained that the reasons for cancellation identify
sustained, systemic, and recurring non-compliance across fatigue, maintenance
and mass management, including multiple major defects, numerous fatigue
offences, ineffective safety management systems, failure of internal controls, and
an inability or unwillingness to recognise the seriousness of that offending. The
Regulator submitted that, together, those findings establish that the accreditations
themselves were posing an unacceptable safety risk, and that cancellation was
required in the interest of public safety.
39 The Regulator relies on Milko Livestock Pty Ltd v NHVR27 as directly on
point. That decision, made by the Queensland Civil and Administrative Tribunal,
is not binding on this Court. In that case the Tribunal determined that where public
safety is a fundamental element of the decision-maker’s reasoning, the decision
must be characterised as having been “made on the basis of a public safety ground”
for the purposes of the relevant pre-condition,28 even if other grounds are also
present. The Tribunal gave particular emphasis to the word “basis”, as used in the
pre-condition, as suggesting a “wider net cast capturing decisions identifying as a
fundamental constituent or principal element a public safety ground”.29
40 In Milko the Regulator had included precise wording in its reasons for
decision reflective of a “public safety ground”, being: “At this stage, I am unable
to be satisfied that Milko Livestock’s accreditation will not pose a significant risk
to public safety such that it will not endanger or likely to endanger public safety”.
Though expressed as a double-negative, the statement clearly articulates a basis
for the Regulator’s decision being grounded upon the continuing accreditation
25 Exhibit A2 at HS-1 (letter from NHVR to Mr Fragnito of KJK Legal dated 24 April 2026).
26 Exhibit A2 at HS-1 pages 16, 21 to 23 of 341.
27 [2026] QCAT 112.
28 In that case the relevant provision was section 648(1)(a) relating to a stay following an appeal of a
review decision, which is in equivalent terms to section 642(1)(a) relating to the stay of a reviewable
decision pending the outcome of an internal review.
29 Milko at [31].
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[2026] SADC 52
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posing a significant risk to public safety. Sunrise emphasised that there is not
similar mirror language in the reasons for decision of the Regulator here.
41 The Regulator submits that to accept Sunrise’s contrary construction would
undermine the statutory scheme, permit form to prevail over substance, and
circumvent the clear intention of Parliament that decisions taken to protect public
safety should not be suspended pending review. On that basis alone, the Regulator
contends the stay application is ultra vires and must be dismissed, without the
Court reaching the discretionary stay factors.
42 The Regulator rejected Sunrise’s contention that absence of the express
words “significant risk” in the reasons for cancellation was determinative, relying
on Wu Shan Liang principles that administrative decision-maker reasons are to be
read fairly and as a whole, not with “fine-tooth comb” scrutiny.30
43 The Regulator submitted that Sunrise’s attempt to confine “public safety
grounds” to decisions under other parts of the HVNL (notably Chapters 6 and 8)
is misconceived and inconsistent with the statutory text and scheme. The Regulator
argued that this comparative, structural approach impermissibly treats different
regulatory mechanisms as reflecting different levels of public safety concern, when
in fact they address different functions in managing safety risk. The Regulator
categorised Chapters 6 and 8 as dealing with immediate, frontline enforcement to
control acute risks (such as unsafe vehicles or operations at a point in time),
whereas the accreditation regime is directed to systemic and ongoing public safety
risk arising from granting operators regulatory privileges and concessions. The
Regulator said that section 473 expressly incorporates public safety as a
cancellation ground, using language that public safety “has been, or is likely to be,
endangered”, and the contended that it would be incoherent if decisions taken on
that very basis were nevertheless excluded from being characterised as made on a
public safety ground for the purposes of sections 640 and 642.
44 Further, the Regulator submitted that nothing in the HVNL suggests
Parliament intended a narrow or hierarchical conception of public safety confined
to emergency-style powers, and that Sunrise’s construction would substantially
hollow out section 642 in the accreditation context, allowing decisions taken to
prevent ongoing safety risk to be stayed simply because they arise under a different
Chapter of the HVNL. That outcome, the Regulator said, is inconsistent with the
express language of section 473, the integrated operation of the regulatory
framework, and authority (in Milko) recognising that accreditation cancellations
grounded in systemic safety failures may properly be characterised as public safety
decisions.
Consideration
45 Whether the Court has power to grant a stay turns on whether the impugned
decision was “made on the basis of a public safety ground” within the meaning of
30 Minister for Immigration and Ethnic Affairs v Wu Shan Liang (1996) 185 CLR 259; [1996] HCA 6.
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[2026] SADC 52
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sections 640 and 642 of the HVNL. That question is anterior to, and discrete from,
the discretionary considerations ordinarily governing applications for a stay. It is
also discrete from the question as to whether the stay application has utility.
46 Whether a decision was made on the basis of a public safety ground is a
jurisdictional fact to be determined by the Court. It does not depend on how the
parties characterise the decision in submissions, but on what the Regulator in fact
decided and why.31
47 The appropriate inquiry directs the Court’s attention to the actual basis of the
Regulator’s reasoning, not to what might have justified the same outcome, nor to
after the event rationalisations advanced in litigation. The real question is whether
public safety (within the meaning of that term in section 640) constituted an actual,
substantive and operative reason for the decision.32 To this end it is necessary to
construe the whole of the written reasons for the Regulator’s decision on 24 April
2026.
48 The construction exercise must have regard to administrative reasons being
read fairly, beneficially and as a whole, without an eye keenly attuned to error, and
without insisting on mechanical recitation of statutory language.33 The Court must
be careful not to supply an unexpressed statutory satisfaction, or reconstruct a
reasoning path, not disclosed by the reasons.34 Put simply, this entails the Court
determining whether that satisfaction is disclosed by the reasons as expressed.
49 To my mind, a decision may be “made on the basis of a public safety ground”
even though the words: “significant risk to public safety” are not precisely
expressed in the written reasons. What is required is that the reasons, read as a
whole, disclose that the Regulator was satisfied that continuation of the
accreditations posed a risk to public safety of a kind that warranted cancellation in
order to prevent its occurrence; that is, a risk properly characterised as significant
within the meaning of section 640. In contrast, I accept that the mere presence of
safety‑related language in the reasons, or the fact that the object of the HVNL is
directed to public safety, does not of itself engage the exclusion.
50 The Regulator could not be expected to use the precise words “significant
risk to public safety” in its reasons for decision to cancel the accreditations
pursuant to section 473, when that is not the language of the test for cancellation
under section 473. To my mind, it could be problematic to insert those words in a
cancellation decision when that is not the issue in contention at that time. The
deliberate use of that language in those circumstances could be construed as
mischievous; a mechanism to forestall a later stay application.
31 Hossain v Minister for Immigration and Border Protection (2018) 264 CLR 123 at [24]–[25], [27];
32 Minister for Immigration and Multicultural Affairs v Yusuf (2001) 206 CLR 323 at [69]; Minister for
Immigration and Border Protection v SZMTA (2019) 264 CLR 421 at [45]–[47], [106].
33 Wu Shan Liang at 271–272.
34 Yusuf at [69].
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51 Further, I do not consider that public safety need be the sole basis of the
decision. It is sufficient if the significant risk to public safety was a fundamental
or determinative element of the reasoning process. A decision may rest on multiple
grounds and still be one made “on the basis of” public safety for the purposes of
the statutory exclusion,35 as long as public safety was fundamental or determinative
to the decision.
52 The purpose of the HVNL, including the evident legislative intention that
decisions taken to protect public safety should not be readily suspended, may
inform construction. That purpose or legislative intention cannot, however,
displace the statutory requirement that the decision be made on the expressed basis
set out in the text of the pre-condition provision.36
53 The second reading speech to the HVNL Bill does not advance the
construction of sections 640 and 642. While there can be recourse to extrinsic
materials, such materials cannot be used to displace the statutory text or introduce
limitations not otherwise supported by it. This is particularly so where I do not
accept the provision is ambiguous or obscure, or on its ordinary meaning would
lead to a result that is manifestly absurd or unreasonable.37 The passage relied upon
by Sunrise in the second reading speech identifies particular examples of decisions
taken for public safety reasons, but I do not accept that passage operates to define
or confine the expression “public safety ground”. That concept is instead defined
in section 640 in general terms by reference to the Regulator’s state of satisfaction
as to significant risk and is not conditioned by reference to the category of decision
in which it arises. To read the second reading speech as limiting the operation of
section 642 to particular classes of decisions would be to introduce an unexpressed
restriction on the statutory language.
54 Further, I note the submissions of Sunrise that, having regard to the whole of
the HVNL, the express adoption of the phrase “significant risk to public safety” in
Chapters 4 and 6 might point to a legislative intention that the only decisions
caught by the statutory exclusion of a stay application are those where correlative
statutory grounds pick up that precise language; and that there are deliberately
different threshold tests. However, I do not think sections 640 and 642(1)(a) are
designed to operate in that confined way.
55 The text of section 640 does not itself dictate a narrow compass by reference
only to those legislated grounds which pick up that precise language; to do so
would mean that, even where the Regulator is satisfied that ongoing accreditation
endangers public safety, accreditation cancellations would then almost never fall
within the stay exclusion under section 642(1)(a). This would significantly
undermine the legislative choice to exclude stays where public safety is engaged,
particularly in relation to operators enjoying regulatory concessions.
35 Milko at [31].
36 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at [69]–[71].
37 HVML, Sch. 1, ss 8(2)(a) and (b).
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56 Further, there would not seem to be any rational basis to suppose Parliament
intended accreditation-based decisions posing significant risk to the public to be
more readily stayed than other safety-protective decisions. The narrow approach
to construction urged by Sunrise is flawed because it rests on an unduly semantic
comparison between different statutory expressions and purports to introduce an
unexpressed hierarchy of safety risk across the HVNL. There is no indication in
the text or structure of the HVNL that Parliament intended to create a graded
scheme whereby findings that public safety “has been, or is likely to be,
endangered” fall short, as a matter of principle, of the kind of public safety
concerns capable of engaging section 640.
57 On the contrary, the language of “endangerment” is inherently serious and,
in an accreditation context, where operators are entrusted with systemic, ongoing
responsibilities affecting road safety, a finding of repeated non-compliance, major
defects, and ineffective safety systems exposing road users to danger is naturally
understood as describing a state of affairs involving significant and continuing risk
to public safety. It is implicit in a finding that public safety has been endangered
or is likely to be endangered that the risk posed by the impugned activity is real
and present and is significant and not hypothetical. The question that arises is not
whether different words have been used in the decision, but whether the
Regulator’s reasons disclose, in substance, a decision made because the
continuation of accreditation posed an unacceptable risk to public safety - and
therefore came within the description of being a significant risk to public safety.
58 That said, I accept that in applying these principles, it is necessary to
distinguish between: (i) decisions cancelling or suspending accreditations because
of non‑compliance, audit failure or regulatory discipline, even where those matters
touch on safety; and (ii) decisions cancelling or suspending approvals because
continued operation under the accreditation itself poses an unacceptable risk to
public safety. Only the latter engage the public safety exclusion under section
642(1)(a).
59 Accordingly, turning to the present matter, the Court must determine:
(i) whether the Regulator made findings that continuation of the
accreditations for Sunrise created, or were likely to create, a significant
risk to public safety; and
(ii) whether those findings formed a substantive reason for the decision to
cancel the accreditations.
60 If so, the exclusion in section 642 is engaged and the Court lacks power to
grant a stay. If not, the Court retains jurisdiction to consider the stay on its merits.
61 To this end, I have carefully considered the Regulator’s reasons for its
decision to cancel Sunrise’s accreditations set out in the Regulator’s letter to
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Sunrise’s lawyers dated 24 April 2026.38 I find that there is a sufficient foundation
provided by those reasons to determine that the Regulator held serious concerns
about the dangers posed to public safety if Sunrise were to be permitted to maintain
its accreditations. This is particularly evident in the reasons expressed for findings
related to the grounds at paragraphs (e) and (f) of section 473(1). For its findings
on each of those grounds the Regulator concludes:
• as to the Maintenance Management and Mass Management
Accreditation (s 473(1)(e)):39
The fundamental failures of Sunrise Adelaide’s safety management systems and
operational practices, combined with the repeated attempts to justify or normalise defects
as an inevitable consequence of the scale of operations, creates a foreseeable risk that public
safety is likely to be endangered if Sunrise Adelaide continues to hold Maintenance
Management and Mass Management accreditation.
• as to the BFM accreditation (s 473(1)(f)):40
I am satisfied that the Fatigue Offences, when considered in their totality, demonstrate that
Sunrise Adelaide’s fatigue management systems are not operating effectively and are
incapable of reliably controlling fatigue risk. Further, the repeated attempts to minimise
offending suggests a culture of non-compliance or a lack of appreciation for the safety risks
arising from non-compliance with fatigue requirement under the NHVAS. I find that, if
Sunrise Adelaide were to continue to hold BFM accreditation, public safety is likely to be
endangered. Therefore, cancellation is necessary.
62 These matters are fortified by the Regulator’s reasons at section 5 of the letter
relating to the “public interest” ground (s 473(1)(g)), where the Regulator states:41
Your submission that cancellation of accreditation “could not realistically expect to deliver
any reduction in the alleged risk to public safety” is, in my view, another attempt to
minimise the significance of the offending. I find that, the failure to appreciate the public
safety risks that flow from ineffective systems and internal controls, along with the attempts
to excuse or deflect responsibility, undermines confidence that Sunrise Adelaide’s culture,
systems or attitude will improve. In the interest of public safety, cancellation is justified.
63 To my mind, the reasons of the Regulator for cancelling Sunrise’s
accreditations make it abundantly clear that the Regulator held serious concerns
for the risks to public safety if Sunrise continued to hold its accreditations. On a
review of the reasons, these concerns cannot be characterised as cursory or merely
touching on safety; they were core concerns of the Regulator which formed a basis
for its decision to cancel Sunrise’s accreditations.
38 Exhibit A2 (HS-1).
39 Ibid at page 8 of the letter (p 22 of 341).
40 Ibid at page 9 of the letter (p 23 of 341).
41 Ibid.
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64 Therefore, I find that the Regulator’s decision to cancel Sunrise’s
accreditations was made on the basis of a public safety ground and Sunrise’s
application for a stay of the decision must be dismissed.
Other matters
65 Given my conclusion on the statutory exclusion under section 642(1)(a), it is
neither necessary nor appropriate for me to now engage in a hypothetical exercise
of determining whether the Court would have power to grant a retrospective stay
or to consider the usual discretionary factors for determination of a stay
application. This is particularly so because the issue of public safety would also be
central to determination of those other questions and to embark upon that analysis
might invite hypothetical and contradictory findings on public safety aspects of the
Regulator’s decision. As such, I have declined to record those alternative findings
that would necessarily traverse an uncertain hypothetical foundation.
66 For the avoidance of doubt, I also note that this determination has been
strictly confined to the anterior question of jurisdiction under section 642, which
turns on the proper characterisation of the basis upon which the Regulator made
its decision; without any evaluation of its correctness. As such, the Court has not
engaged in any merits review, weighed the evidentiary foundation for the decision,
or determined whether the conclusions reached by the Regulator were justified.
Nothing in these reasons should be taken as endorsing, or rejecting, the substance
of the Regulator’s findings, which remain the subject of the ongoing internal
review process established by the HVNL. For the same reason, it is neither
necessary nor appropriate to address Sunrise’s allegations of procedural unfairness
or other asserted grounds of challenge. Those matters concern the validity or
propriety of the decision and are reserved for determination within the statutory
review framework. The present task has been limited to whether, on a fair reading
of the reasons, the Regulator’s decision was made on the basis of a public safety
ground, such that the statutory condition for the exercise of the Court’s power to
grant a stay is not satisfied.
Orders
67 The Applicant’s application for a stay of the Respondent’s decision is
dismissed.
68 Having dismissed the application, the usual position is that costs follow the
event. I will hear the parties as to any different order, but prima facie Sunrise
should pay the Regulator’s costs of the application on the standard basis.
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