ADCO Constructions Pty Ltd v Goudappel [2014] HCA 18
HIGH COURT OF AUSTRALIA
FRENCH CJ,
CRENNAN, KIEFEL, GAGELER AND KEANE JJ
ADCO CONSTRUCTIONS PTY LTD APPELLANT
AND
RONALD GOUDAPPEL & ANOR RESPONDENTS
ADCO Constructions Pty Ltd v Goudappel
[2014] HCA 18
16 May 2014
S201/2013
ORDER
1. Appeal allowed.
2. Set aside paragraph 3 of the order of the Court of Appeal of the
Supreme Court of New South Wales made on 29 April 2013 and, in
its place, order that the question of law referred to the President of
the Workers Compensation Commission of New South Wales as
amended:
"Do the amendments to Division 4 of Part 3 of the Workers
Compensation Act 1987 introduced by Schedule 2 of the
Workers Compensation Legislation Amendment Act 2012
apply to claims for compensation pursuant to s 66 made on
and after 19 June 2012 where a worker has made a claim for
compensation of any type in respect of the same injury before
19 June 2012?"
be answered:
"Clause 5(4) of Pt 19H of Sched 6 to the Workers
Compensation Act 1987 (NSW) (introduced by Sched 12 [1]
to the Workers Compensation Legislation Amendment Act
2012 (NSW)) enabled the making of cl 11 of Sched 8 to the
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2.
Workers Compensation Regulation 2010 (NSW) (introduced
by Sched 1 [5] to the Workers Compensation Amendment
(Transitional) Regulation 2012 (NSW)), with the effect that
the amendments to Div 4 of Pt 3 of the Workers
Compensation Act introduced by Sched 2 to the Workers
Compensation Legislation Amendment Act apply to claims
for compensation pursuant to s 66 of the Workers
Compensation Act made on and after 19 June 2012, where
the worker has not made a claim specifically seeking
compensation under s 66 or s 67 before 19 June 2012."
3. Appellant to pay the first respondent's costs in this Court.
On appeal from the Supreme Court of New South Wales
Representation
D F Jackson QC with S L C Flett and W A D Edwards for the appellant
(instructed by Moray & Agnew Solicitors)
J B Simpkins SC with E G Romaniuk SC and L G Morgan for the first
respondent (instructed by Leitch Hasson Dent Solicitors)
J K Kirk SC with S J Free for the second respondent (instructed by
WorkCover Authority of New South Wales)
Notice: This copy of the Court's Reasons for Judgment is subject
to formal revision prior to publication in the Commonwealth Law
Reports.
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CATCHWORDS
ADCO Constructions Pty Ltd v Goudappel
Workers compensation – Permanent impairment compensation – Injured worker
claimed compensation – Subsequent specific claim for permanent impairment
compensation under s 66 of Workers Compensation Act 1987 (NSW) ("WCA") –
Amendments to WCA limited entitlement to permanent impairment
compensation – Savings and transitional provisions of amending Act protected
worker's entitlement – Employer claimed protection displaced by transitional
regulation made pursuant to amending Act – Whether transitional regulation
extinguished worker's entitlement – Whether transitional regulation valid.
Statutory interpretation – Retrospectivity – Henry VIII clause – Savings and
transitional provisions.
Words and phrases – "accrued rights", "Henry VIII clause", "permanent
impairment compensation", "retrospectivity", "savings and transitional
provisions".
Interpretation Act 1987 (NSW), ss 5(2), 30(1)(c).
Workers Compensation Act 1987 (NSW), ss 66, 280, Sched 6, Pts 19H, 20.
Workers Compensation Regulation 2010 (NSW), Sched 8, Pt 1, cl 11.
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FRENCH CJ, CRENNAN, KIEFEL AND KEANE JJ.
Introduction
1 In 2012, the Workers Compensation Act 1987 (NSW) ("the WCA") was
amended by the Workers Compensation Legislation Amendment Act 2012 (NSW)
("the Amendment Act"). The Amendment Act limited the lump sum
compensation entitlements of workers to those who had suffered injury resulting
in permanent impairment exceeding ten percent. Before the Amendment Act,
there was no threshold level of permanent impairment. The relevant provisions
of the Amendment Act commenced on 27 June 2012. Its savings and transitional
provisions protected the entitlements of workers who had claimed lump sum
compensation before 19 June 2012. The first respondent, Ronald Goudappel, an
employee of the appellant, ADCO Constructions Pty Ltd ("ADCO"), had
received an injury at work in April 2010. He made a claim for compensation
within two days, which claim, it is now accepted, covered any entitlement to
permanent impairment compensation. He was later found to have a permanent
impairment assessed at six percent and lodged a specific claim for compensation
in respect of that impairment on 20 June 2012.
2 The statutory protection extended to Mr Goudappel's permanent
impairment entitlement by the savings and transitional provisions of the
Amendment Act was said by ADCO's workers compensation insurer to have
been displaced by a transitional regulation made pursuant to those provisions.
That regulation extended the disentitling operation of the amendments to claims
for compensation made before 19 June 2012, albeit not to a claim that
"specifically sought" permanent impairment compensation. The regulation was
purportedly made pursuant to a power to make savings and transitional
regulations having the effect of amending the WCA1.
3 The questions in this appeal are whether the regulation would have
extinguished Mr Goudappel's entitlement to lump sum compensation and, if so,
whether the regulation was valid. The Court of Appeal of the Supreme Court of
New South Wales held that the regulation was invalid to the extent that it sought
to affect that entitlement prejudicially. For the reasons that follow, the regulation
was valid and applied the amendments to extinguish Mr Goudappel's entitlement.
The appeal must be allowed.
1 The regulation-making power fell within the category of a Henry VIII clause,
authorising delegated legislation which may be inconsistent with, or amend, the
empowering statute.
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French CJ
Crennan J
Kiefel J
Keane J
2.
Factual and procedural background
4 On 17 April 2010, Mr Goudappel, who was then the State Manager for
ADCO, suffered injury at work when a bundle of steel purlins fell from a forklift,
crushing his left foot and ankle. On 19 April 2010, he made a claim for
compensation under the WCA. On 14 July 2011, he was assessed by an
orthopaedic surgeon as having a six percent permanent impairment with respect
to the injuries he sustained. On 20 June 2012, his solicitors made a claim for
lump sum compensation, pursuant to s 66 of the WCA, for $8,250 on the basis of
the assessed six percent permanent impairment.
5 ADCO's workers compensation insurer declined liability for lump sum
compensation. Mr Goudappel filed an Application to Resolve a Dispute in the
Workers Compensation Commission of New South Wales ("the WCC"). A
Senior Arbitrator of the WCC, of her own motion, made an Application for
Leave to Refer a Question of Law to the President of the WCC, pursuant to
s 351(1) of the Workplace Injury Management and Workers Compensation Act
1998 (NSW) ("the WIM Act"). The question referred, as reformulated by the
President, was:
"Do the amendments to Division 4 of Part 3 of the Workers Compensation
Act 1987 introduced by Schedule 2 of the Workers Compensation
Legislation Amendment Act 2012 apply to claims for compensation
pursuant to s 66 made on and after 19 June 2012 where a worker has made
a claim for compensation of any type in respect of the same injury before
19 June 2012?"
6 The President, his Honour Judge Keating, granted leave to refer the
question of law and answered the question in the affirmative2. Mr Goudappel
appealed by leave to the Court of Appeal, which allowed the appeal and ordered
that the question of law be answered in the negative3. On 11 October 2013,
ADCO was granted special leave to appeal to this Court against the decision of
the Court of Appeal4. Special leave was granted on ADCO's undertaking not to
seek to disturb any orders as to costs which had been made below and to pay
Mr Goudappel's costs of the appeal, including the costs of the application for
2 Goudappel v ADCO Constructions Pty Ltd [2012] NSWWCCPD 60.
3 Goudappel v ADCO Constructions Pty Ltd (2013) 11 DDCR 534; [2013]
NSWCA 94.
4 [2013] HCATrans 250 (Kiefel and Keane JJ).
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French CJ
Crennan J
Kiefel J
Keane J
3.
special leave. The WorkCover Authority of New South Wales was joined as
second respondent in support of ADCO's position.
The statutory entitlement and claim provisions
7 When Mr Goudappel suffered injury in April 2010, he became entitled,
pursuant to s 9(1) of the WCA, to receive compensation from his employer in
accordance with the Act5. Having suffered what was later assessed as a
permanent impairment, he acquired an accrued right to lump sum compensation
pursuant to s 66(1), which, as it stood prior to the amendments, provided:
"A worker who receives an injury that results in permanent impairment is
entitled to receive from the worker's employer compensation for that
permanent impairment as provided by this section. Permanent impairment
compensation is in addition to any other compensation under this Act."
If the degree of permanent impairment was not greater than ten percent, the
compensation was the product of the percentage degree of permanent impairment
and the sum of $1,3756.
8 Claims for compensation under the WCA were to be made as provided in
the WIM Act. The WCA was to be construed as if it formed part of that Act7.
Claims were required to comply with the applicable WorkCover Guidelines8,
issued pursuant to s 376 of the WIM Act by the WorkCover Authority
established by s 14(1) of that Act.
9 The President answered the referred question on the basis that
Mr Goudappel had not claimed permanent impairment compensation until
20 June 20129. The Court of Appeal, however, held that none of the provisions
of the WIM Act or the WorkCover Guidelines required an injured worker to
5 Kraljevich v Lake View and Star Ltd (1945) 70 CLR 647 at 650–651 per
Latham CJ, 652–653 per Dixon J; [1945] HCA 29; Bresmac Pty Ltd v Starr (1992)
29 NSWLR 318 at 327 per Priestley JA, 334 per Sheller JA.
6 WCA, s 66(2)(a).
7 WCA, s 2A(2); WIM Act, s 60(2).
8 WIM Act, s 260(1).
9 [2012] NSWWCCPD 60 at [128].
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French CJ
Crennan J
Kiefel J
Keane J
4.
make a separate claim for lump sum compensation10. That conclusion was not in
issue on this appeal. The consequence for this appeal was that Mr Goudappel's
original claim for compensation made on 19 April 2010 can be taken as
subsuming a claim for permanent impairment compensation, even though a later
claim specifically directed to such compensation was lodged on 20 June 2012.
The amendments to the WCA and the transitional regulation therefore fall to be
considered and applied on that basis. That does not mean, however, that the
original claim could be said to be "a claim that specifically sought compensation
under section 66" for the purpose of the disentitling regulation which was in issue
in this appeal.
The amendments to the WCA
10 The amendments to the WCA were set out in a number of Schedules to the
Amendment Act. Schedule 2, which contained the amendments relating to lump
sum compensation, commenced on the date of assent to the Amendment Act,
which was 27 June 201211. Schedule 12, which related to savings and
transitional provisions, also commenced on that date12. Schedule 2 omitted
s 66(1) and substituted a new s 66(1), which limited the entitlement to permanent
impairment compensation to workers who had received an injury resulting in a
degree of permanent impairment greater than ten percent13. If applicable to
Mr Goudappel's case, the new s 66(1) would have had the effect that he had no
entitlement to lump sum compensation for permanent impairment.
11 Mr Goudappel's pre-amendment entitlement was an accrued right within
the meaning of s 30(1)(c) of the Interpretation Act 1987 (NSW), which, by virtue
of s 5(2) of that Act, applies to an Act or instrument except insofar as the
contrary intention appears in the Interpretation Act, or in the Act or instrument
concerned. Section 30(1)(c) provides that the amendment of an Act or statutory
rule does not affect any right, privilege, obligation or liability acquired, accrued
or incurred under the Act or statutory rule. However, a "contrary intention" was
evidenced by the savings and transitional provisions of the WCA as amended and
by the regulation made pursuant to those provisions.
10 (2013) 11 DDCR 534 at 539 [16] per Basten JA, Bathurst CJ agreeing at 536 [1],
Beazley P agreeing at 536 [2].
11 Amendment Act, s 2(2)(a).
12 Amendment Act, s 2(2)(h).
13 Amendment Act, Sched 2.1 [5].
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French CJ
Crennan J
Kiefel J
Keane J
5.
12 Schedule 6 to the WCA was entitled "Savings, transitional and other
provisions" and divided into Parts. The Amendment Act added a new Pt 19H to
Sched 614. Part 19H was entitled "Provisions consequent on enactment of
Workers Compensation Legislation Amendment Act 2012". It introduced new
savings and transitional provisions into the WCA including, relevantly, cll 3 and
15.
13 Clause 3 provided:
"Application of amendments generally
(1) Except as provided by this Part or the regulations, an amendment
made by the 2012 amending Act extends to:
(a) an injury received before the commencement of the
amendment, and
(b) a claim for compensation made before the commencement
of the amendment, and
(c) proceedings pending in the Commission or a court
immediately before the commencement of the amendment.
(2) An amendment made by the 2012 amending Act does not apply to
compensation paid or payable in respect of any period before the
commencement of the amendment, except as otherwise provided
by this Part."
On its face, cl 3(1) applied the amendments to accrued rights, subject to such
exceptions to that application as were provided by Pt 19H or the regulations.
One such exception was cl 15 of Pt 19H, which protected claims for lump sum
compensation made before 19 June 2012. It provided:
"Lump sum compensation
An amendment made by Schedule 2 to the 2012 amending Act extends to
a claim for compensation made on or after 19 June 2012, but not to such a
claim made before that date."
14 Amendment Act, Sched 12 [1]. Schedule 6 was given effect by s 282 of the WCA.
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French CJ
Crennan J
Kiefel J
Keane J
6.
In summary, cl 15 protected entitlements the subject of claims made before
19 June 2012 from the general application of cl 3 and, therefore, from the
disentitling effect of the new s 66(1). The Court of Appeal found that, subject to
the effect of the challenged regulation, cl 15 protected Mr Goudappel's
entitlement to permanent impairment compensation. As noted earlier in these
reasons, that conclusion was not in issue on this appeal. The protection provided
by cl 15 was, however, liable to be affected by regulation. It is necessary now to
refer to the regulation-making powers contained in the WCA as amended.
The regulation-making powers under the WCA
14 Prior to the amendment of the WCA, s 280, which was not affected by the
amendments, conferred a general regulation-making power on the Governor in
familiar terms15. That section continued as the primary source of the regulation-
making power under the WCA. It was given a particular content by Pt 20 of
Sched 6 to the WCA, as it stood before the Amendment Act. That Part, entitled
"Savings and transitional regulations", provided in cl 1(1) that:
"The regulations may contain provisions of a saving or transitional nature
consequent on the enactment of the following Acts:
this Act and the cognate Acts
…"
There followed a list of statutes. The term "cognate Acts" was defined in Pt 1 of
Sched 6 by reference to a number of listed Acts.
15 Clauses 1(2) to 1(4) of Pt 20 are material for present purposes. They
provided:
"(2) A provision referred to in subclause (1) may, if the regulations so
provide, take effect as from the date of assent to the Act concerned
or a later day.
15 Section 280(1) of the WCA provided that "[t]he Governor may make regulations,
not inconsistent with this Act, for or with respect to any matter that by this Act is
required or permitted to be prescribed or that is necessary or convenient to be
prescribed for carrying out or giving effect to this Act."
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French CJ
Crennan J
Kiefel J
Keane J
7.
(3) To the extent to which a provision referred to in subclause (1) takes
effect from a date that is earlier than the date of its publication in
the Gazette, the provision does not operate so as:
(a) to affect, in a manner prejudicial to any person (other than
the State or an authority of the State), the rights of that
person existing before the date of its publication in the
Gazette, or
(b) to impose liabilities on any person (other than the State or an
authority of the State) in respect of any thing done or
omitted to be done before the date of its publication in the
Gazette.
(4) A provision referred to in subclause (1) shall, if the regulations so
provide, have effect notwithstanding any other clause of this
Schedule."
16 Part 20 of Sched 6 to the WCA was amended by the Amendment Act.
The amendment extended the application of cl 1(1), with respect to regulations of
a "saving or transitional nature", to "any other Act that amends this Act", and so
picked up the Amendment Act itself16. The power to make regulations
containing savings or transitional provisions consequent on the Amendment Act
therefore derived from s 280 of the WCA, read with cl 1(1) of Pt 20. That power
was effectively expanded by cl 5 of the new Pt 19H of Sched 6 to the WCA. It
authorised the making of savings or transitional regulations which were
inconsistent with the provisions of Pt 19H and which amended the WCA.
17 Clause 5 provided:
"(1) Regulations under Part 20 of this Schedule that contain provisions
of a saving or transitional nature consequent on the enactment of
the 2012 amending Act may, if the regulations so provide, take
effect as from a date that is earlier than the date of assent to the
2012 amending Act.
(2) Clause 1(3) of Part 20 does not limit the operation of this clause.
(3) A provision referred to in subclause (1) has effect, if the regulations
so provide, despite any other provision of this Part.
16 Amendment Act, Sched 12 [2].
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French CJ
Crennan J
Kiefel J
Keane J
8.
(4) The power in Part 20 to make regulations that contain provisions of
a saving or transitional nature consequent on the enactment of the
2012 amending Act extends to authorise the making of regulations
whereby the provisions of the Workers Compensation Acts are
deemed to be amended in the manner specified in the regulations."
Clause 5(4) underpinned the challenged regulation, which, if valid, was said to
displace the protection which cl 15 otherwise accorded to Mr Goudappel's
accrued entitlement to permanent impairment compensation under the WCA, as
it stood prior to the amendments.
The backdating of regulations — a contextual side issue
18 Clause 1(2) of Pt 20 allowed savings and transitional regulations to be
made which would take effect from the date of assent to an Act amending the
WCA or a later day. In respect of savings or transitional regulations made
consequent on the enactment of the Amendment Act, cl 5(1) of Pt 19H conferred
a wider backdating power, authorising the making of such regulations to take
effect from a date earlier than the date of assent to the Amendment Act. Plainly,
a subset of the regulations which could be made under cl 5(1) were regulations
which took effect from the date of assent to the Amendment Act and were thus
within the class of regulations that could be made under cl 1(2). The effect of
such regulations on existing rights would have been limited by cl 1(3) of Pt 20
but for cl 5(2), which displaced that protective provision. When such a
regulation took effect from a date prior to its gazettal, cl 1(3)(a) operated to
prevent it from affecting prejudicially the rights of a person which existed before
the gazettal date.
19 There was debate in the appeal about the operation of these provisions.
However, the disentitling regulation in issue, set out in the next section of these
reasons, did not purport to take effect from a date prior to the date of assent to the
Amendment Act, nor prior to the date on which it was gazetted. It did purport to
affect entitlements which had come into existence before it was made. The
operation of the disentitling regulation in that way would not justify its
characterisation as a regulation which took effect on a date before its gazettal.
Nor do the provisions of cl 5 of Pt 19H require that it be such a regulation before
it could affect existing rights. The backdating provisions of cl 1 of Pt 20 and cl 5
of Pt 19H can be put to one side, except to the extent that they are elements of the
statutory context in which cl 5(4) is to be understood.
20 The contextual significance of cl 5(2) of Pt 19H, in displacing the
protection afforded by cl 1(3) of Pt 20, is that it disclosed a statutory purpose
adverse to the application of s 30(1)(c) of the Interpretation Act to limit the
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French CJ
Crennan J
Kiefel J
Keane J
9.
regulation-making power with respect to savings and transitional regulations,
insofar as they might affect accrued rights.
The disentitling regulation
21 The Workers Compensation Regulation 2010 (NSW) ("the WCR") was
amended pursuant to the amended regulation-making power conferred by the
WCA. There were two amendments to the WCR. The first, which commenced
on 17 September 201217, inserted a new Sched 8 into the WCR18. It did not
purport to affect the lump sum compensation entitlements protected by cl 15 of
Pt 19H of Sched 6 to the WCA. However, the second amendment, which
commenced on 1 October 201219, did affect those entitlements. It inserted20, at
the end of Pt 1 of the new Sched 8, a number of clauses, including cl 11 entitled
"Lump sum compensation", which provided:
"(1) The amendments made by Schedule 2 to the 2012 amending Act
extend to a claim for compensation made before 19 June 2012, but
not to a claim that specifically sought compensation under
section 66 or 67 of the 1987 Act.
(2) Clause 15 of Part 19H of Schedule 6 to the 1987 Act is to be read
subject to subclause (1)."
The new cl 11 of Sched 8 to the WCR was said to have had the effect of
removing the protection conferred by cl 15 of Pt 19H of Sched 6 to the WCA
with respect to Mr Goudappel's lump sum compensation entitlement. Both the
construction and the validity of the regulation are in issue. Before turning to
those questions, it is necessary to refer briefly to the decisions of the President of
the WCC and of the Court of Appeal.
17 Workers Compensation Amendment (Miscellaneous) Regulation 2012 (NSW),
cl 2.
18 Workers Compensation Amendment (Miscellaneous) Regulation, Sched 1 [3].
19 Workers Compensation Amendment (Transitional) Regulation 2012 (NSW), cl 2.
20 Workers Compensation Amendment (Transitional) Regulation, Sched 1 [5].
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French CJ
Crennan J
Kiefel J
Keane J
10.
The President's decision
22 The President held that cl 15 of Pt 19H of Sched 6 to the WCA would
protect a claim for lump sum compensation made on or after 19 June 2012, but
not such a claim made before that date21. His Honour held that the term "a claim
for compensation" in cl 15 was a reference to lump sum compensation and not a
reference to compensation used in the wider sense22. As Mr Goudappel had
made no claim for permanent impairment compensation until after 19 June 2012,
he had no entitlement to such compensation23. The President therefore answered
the question reserved for his consideration in the affirmative24.
The decision of the Court of Appeal
23 The reasons for judgment of the Court of Appeal were delivered by
Basten JA, with whom Bathurst CJ25 and Beazley P26 agreed. The argument in
that Court had focussed upon the operation of cl 15 of Pt 19H of Sched 6 to the
WCA, on which the President's decision turned. The Court held that
Mr Goudappel could rely upon the claim he had lodged on 19 April 2010, and
that cl 15 did not apply the new s 66 to that claim27.
24 The Court went on to consider the new transitional regulation, cl 11 of
Sched 8 to the WCR. The Court held:
• Clause 1 of Pt 20 of Sched 6 to the WCA does not authorise a regulation
which interferes with rights which accrued prior to the date of its
publication, whether or not it purported to take effect at an earlier date28.
21 [2012] NSWWCCPD 60 at [126].
22 [2012] NSWWCCPD 60 at [161].
23 [2012] NSWWCCPD 60 at [128].
24 [2012] NSWWCCPD 60 at [179].
25 (2013) 11 DDCR 534 at 536 [1].
26 (2013) 11 DDCR 534 at 536 [2].
27 (2013) 11 DDCR 534 at 539 [16].
28 (2013) 11 DDCR 534 at 541 [24].
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French CJ
Crennan J
Kiefel J
Keane J
11.
• Clause 5 of Pt 19H of Sched 6 to the WCA did not expand the power
derived from Pt 20 so as to authorise a regulation which extinguishes
rights accrued prior to the date of its publication29.
• Even if it had that effect, it would not affect the outcome in the present
case unless it prejudicially affected rights accrued prior to the date on
which it commenced. The transitional regulation did not seek to backdate
its operation to a point prior to the date of assent to the Amendment Act.
Therefore, cl 5(1) was not relevant30.
• The entitlement to permanent impairment compensation arose at the date
of injury31.
• To the extent that cl 11 sought to prejudicially affect Mr Goudappel's
accrued right to permanent impairment compensation, it was beyond
power and invalid32.
The construction of cl 11
25 There is little room for debate about the construction of the new cl 11 of
Sched 8 to the WCR and its application to Mr Goudappel's entitlement. It
extended the amendments made by Sched 2 to the Amendment Act to a claim for
compensation made before 19 June 2012. It therefore extended to such claims
the operation of the new s 66(1), with its ten percent permanent impairment
threshold. Mr Goudappel's initial claim, which, it was common ground,
subsumed his claim for permanent impairment compensation, was made on
19 April 2010. That claim was not "a claim that specifically sought
compensation under section 66 … of the 1987 Act" within the meaning of cl 11.
As a matter of construction, therefore, cl 11 applied the new s 66(1) to
Mr Goudappel's claim and, if valid, extinguished his entitlement. There was no
room in the text of cl 11 for a construction that avoided that result.
26 Counsel for Mr Goudappel submitted that the core question relevant to the
construction of cl 11 was whether, properly construed, it operated, by
29 (2013) 11 DDCR 534 at 542 [27]–[28].
30 (2013) 11 DDCR 534 at 542 [28].
31 (2013) 11 DDCR 534 at 543 [32].
32 (2013) 11 DDCR 534 at 543 [33].
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French CJ
Crennan J
Kiefel J
Keane J
12.
retrospective effect, to extinguish the accrued right which Mr Goudappel had to
permanent impairment compensation. The characterisation of cl 11 as
"retrospective" was something of a distraction, as was the argument about the
statutory power to make savings and transitional regulations taking effect prior to
their dates of gazettal. The characterisation of cl 11 as "retrospective" is possible
only by attributing to "retrospective" the extended meaning referred to by
Fullagar J in Maxwell v Murphy33. As was observed in Australian Education
Union v General Manager of Fair Work Australia34:
"Interference with existing rights does not make a statute retrospective.
Many if not most statutes affect existing rights." (footnote omitted)
27 On the other hand, it can be accepted that the protection of accrued rights
provided by s 30(1)(c) of the Interpretation Act (read with s 5(2) of that Act)
mirrors the common law as enunciated by Dixon CJ in both Maxwell v Murphy35
and Chang Jeeng v Nuffield (Australia) Pty Ltd36. Referring, in that latter case,
to "the rules of interpretation affecting what is so misleadingly called the
retrospective operation of statutes", his Honour said:
"The general rule of the common law is that a statute changing the law
ought not, unless the intention appears with reasonable certainty, to be
understood as applying to facts or events that have already occurred in
such a way as to confer or impose or otherwise affect rights or liabilities
which the law had defined by reference to the past events."
28 The submissions on behalf of Mr Goudappel going to the construction of
cl 11 did not engage with its text. Instead, it was argued that it was for ADCO to
search for express text that displayed an intention to adversely impact on accrued
rights. The appropriate enquiry in the construction of delegated legislation is
directed to the text, context and purpose of the regulation, the discernment of
relevant constructional choices, if they exist, and the determination of the
33 (1957) 96 CLR 261 at 285; [1957] HCA 7.
34 (2012) 246 CLR 117 at 133 [26] per French CJ, Crennan and Kiefel JJ; [2012]
HCA 19.
35 (1957) 96 CLR 261 at 267.
36 (1959) 101 CLR 629 at 637–638 (McTiernan and Windeyer JJ agreeing at 639 and
650); [1959] HCA 40; see also Kraljevich v Lake View and Star Ltd (1945) 70
CLR 647 at 652 per Dixon J.
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French CJ
Crennan J
Kiefel J
Keane J
13.
construction that, according to established rules of interpretation, best serves the
statutory purpose.
29 It can be accepted, as was put by counsel for Mr Goudappel, that the
WCA's remedial character37 reflects a beneficial purpose which requires a
beneficial construction, if open, in favour of the injured worker. But to accept
the beneficial purpose of the WCA as a whole does not mean that every
provision or amendment to a provision has a beneficial purpose or is to be
construed beneficially. The purpose of the provision must be identified. The
evident purpose of cl 5 was to expand the regulation-making power so as to
allow regulations to be made which could affect pre-existing rights. The purpose
of cl 11, made pursuant to cl 5(4), was clear enough. It applied the new s 66 to
entitlements to permanent impairment compensation which had not been the
subject of a claim made before 19 June 2012 that specifically sought
compensation under the old s 66. Its purpose was patently not beneficial.
30 There was no constructional choice which would enable cl 11 to be
interpreted so as to avoid its application to Mr Goudappel's entitlement.
Whether cl 11 was within power
31 The regulation-making power under the WCA, as expanded by cl 5(4) of
Pt 19H, authorised regulations "whereby the provisions of the Workers
Compensation Acts are deemed to be amended in the manner specified in the
regulations." It was not disputed in this appeal that such powers, although they
have frequently been criticised for good reason38, lay within the legislative power
of the Parliament of New South Wales39. The question for decision was whether
37 See Bird v The Commonwealth (1988) 165 CLR 1 at 6 per Mason CJ, Brennan and
Toohey JJ, 9 per Deane and Gaudron JJ; [1988] HCA 23, which concerned the
provisions of the Compensation (Commonwealth Government Employees) Act
1971 (Cth).
38 Criticisms of which there are many examples — the Donoughmore Committee,
Report of the Committee on Ministers' Powers, (1932) Cmd 4060 at 65
recommended that such clauses "be abandoned in all but the most exceptional
cases, and should not be permitted by Parliament except upon special grounds
stated in the Ministerial Memorandum attached to the Bill"; see generally Morris,
"Henry VIII Clauses: Their Birth, A Late 20th Century Renaissance and a Possible
21st Century Metamorphosis", The Loophole, March 2007 at 14.
39 Public Service Association and Professional Officers' Association Amalgamated
(NSW) v Director of Public Employment (2012) 87 ALJR 162 at 168 [18] per
(Footnote continues on next page)
-- 19 of 31 --
French CJ
Crennan J
Kiefel J
Keane J
14.
the amended regulation-making power in relation to savings and transitional
regulations authorised the new cl 11.
32 Counsel for Mr Goudappel submitted that cl 5(2) of Pt 19H of Sched 6 to
the WCA did not authorise regulations to be made affecting "accrued rights for
any period of backdating". There was, he argued, no displacement of s 30(1)(c)
of the Interpretation Act. As already observed, however, the backdating
provisions provide a context inimical to that submission. The submission is
defeated by the text of cl 5(2) and its evident purpose of displacing the protection
of existing rights otherwise effected by cl 1(3) of Pt 20.
33 It was submitted that cl 11 of Sched 8 to the WCR was not a regulation of
a savings or transitional character within the meaning of cl 5(1). That
submission should not be accepted. The new regulation affected the scope of a
statutory savings or transitional provision and shared its character.
34 It was further submitted that cl 5(4) of Pt 19H required a regulation made
under the extended power to specify the manner in which the provisions of the
WCA were "deemed to be amended". Clause 5(4) thereby imposed, so it was
said, a kind of manner and form condition upon the exercise of the extended
power. Although it might have been argued that cl 5(4), being a Henry VIII
clause, should be construed so as to enhance parliamentary scrutiny by the
imposition of a manner and form requirement, the language of the subclause was
not adapted to that kind of function. The "manner specified in the regulations" is
to be read in this context as a reference to the amendment purportedly effected by
the regulation. Clause 5(4) is to be read as giving effect to any such purported
amendment to the WCA by regulation falling within the power defined by
reference to cl 5 and s 280 of the WCA.
35 Clause 11 of Sched 8 to the WCR is valid.
Conclusion
36 For the preceding reasons, the following orders should be made:
1. Appeal allowed.
French CJ; 293 ALR 450 at 456–457; [2012] HCA 58. A regulation of that kind
was upheld in Victorian Stevedoring and General Contracting Co Pty Ltd and
Meakes v Dignan (1931) 46 CLR 73; [1931] HCA 34.
-- 20 of 31 --
French CJ
Crennan J
Kiefel J
Keane J
15.
2. Set aside paragraph 3 of the order of the Court of Appeal of the Supreme
Court of New South Wales made on 29 April 2013 and, in its place, order
that the question of law referred to the President of the Workers
Compensation Commission of New South Wales as amended:
"Do the amendments to Division 4 of Part 3 of the Workers
Compensation Act 1987 introduced by Schedule 2 of the Workers
Compensation Legislation Amendment Act 2012 apply to claims for
compensation pursuant to s 66 made on and after 19 June 2012
where a worker has made a claim for compensation of any type in
respect of the same injury before 19 June 2012?"
be answered:
"Clause 5(4) of Pt 19H of Sched 6 to the Workers Compensation
Act 1987 (NSW) (introduced by Sched 12 [1] to the Workers
Compensation Legislation Amendment Act 2012 (NSW)) enabled
the making of cl 11 of Sched 8 to the Workers Compensation
Regulation 2010 (NSW) (introduced by Sched 1 [5] to the Workers
Compensation Amendment (Transitional) Regulation 2012
(NSW)), with the effect that the amendments to Div 4 of Pt 3 of the
Workers Compensation Act introduced by Sched 2 to the Workers
Compensation Legislation Amendment Act apply to claims for
compensation pursuant to s 66 of the Workers Compensation Act
made on and after 19 June 2012, where the worker has not made a
claim specifically seeking compensation under s 66 or s 67 before
19 June 2012."
3. Appellant to pay the first respondent's costs in this Court.
-- 21 of 31 --
Gageler J
16.
GAGELER J.
Introduction
37 Section 280(1) of the Workers Compensation Act 1987 (NSW) ("the Act")
confers power to make regulations "not inconsistent with [the] Act, for or with
respect to any matter that by [the] Act is required or permitted to be prescribed".
Section 40 of the Interpretation Act 1987 (NSW) ("the Interpretation Act")
requires that written notice of all such regulations be tabled in both Houses of
Parliament. Section 41 of the Interpretation Act permits the whole or any portion
of any such regulation to be disallowed by resolution of either House.
38 Section 282 of the Act gives effect to Sched 6 to the Act. Clause 5 of
Pt 19H of Sched 6 to the Act and cl 1 of Pt 20 of Sched 6 to the Act (together,
"the empowering provisions"), to which it will be necessary in due course to turn
in detail, combine to permit regulations to be made under s 280(1) of the Act
"that contain provisions of a saving or transitional nature consequent on the
enactment of" the Workers Compensation Legislation Amendment Act 2012
(NSW) ("the 2012 amending Act").
39 This appeal, from a decision of the Court of Appeal of the Supreme Court
of New South Wales (Bathurst CJ, Beazley P and Basten JA)40, concerns the
validity of cl 11 of Sched 8 to the Workers Compensation Regulation 2010
(NSW) ("the Regulation"), which was inserted by the Workers Compensation
Amendment (Transitional) Regulation 2012 (NSW) ("the Transitional
Regulation"). The Transitional Regulation was published on the NSW legislation
website on 28 September 2012 and was expressed by cl 2 to commence on
1 October 2012.
40 Clause 11 provides that an amendment to s 66 of the Act made by Sched 2
to the 2012 amending Act extends to a claim for compensation made before
19 June 2012 (although not to a claim that specifically sought compensation
under s 66 or s 67 of the Act as it existed before the enactment of the 2012
amending Act). It goes on to provide that cl 15 of Pt 19H of Sched 6 to the Act
is to be read "subject to" that provision.
41 The background to cl 11 is that, until 27 June 2012, s 66 of the Act
conferred an entitlement on an injured worker to receive compensation for
permanent impairment irrespective of the injured worker's degree of permanent
impairment. Schedule 2 to the 2012 amending Act, which commenced on
27 June 2012, amended s 66 so as to limit the entitlement the section confers to a
worker whose degree of permanent impairment is greater than 10%. Clause 3 of
Pt 19H of Sched 6 to the Act provides that, "[e]xcept as provided by [that] Part or
40 Goudappel v ADCO Constructions Pty Ltd (2013) 11 DDCR 534.
-- 22 of 31 --
Gageler J
17.
the regulations", an amendment made by the 2012 amending Act extends to an
injury received before the commencement of the amendment as well as to a claim
for compensation made before the commencement of the amendment. Clause 15
of Pt 19H, to which cl 11 specifically refers, creates an exception to cl 3 of that
Part. Clause 15 provides that the amendment to s 66 made by Sched 2 to
the 2012 amending Act extends to a claim for compensation made on or after, but
not before, 19 June 2012.
42 The effect of cl 11, if valid, is therefore: to override cl 15 of Pt 19H of
Sched 6 to the Act; to remove the entitlement of an injured worker who had made
a claim for compensation before 19 June 2012 (but who had not specifically
sought compensation under s 66 or s 67) to receive compensation for permanent
impairment under s 66 of the Act in the form in which s 66 had existed before
the 2012 amending Act; and to substitute an entitlement for such a worker to
receive compensation for permanent impairment under s 66 of the Act in the
form in which s 66 came to exist after the 2012 amending Act. In so doing, cl 11
leaves the injured worker worse off. But for cl 11, the worker would have been
entitled by cl 15 of Pt 19H of Sched 6 to the Act to receive compensation for
permanent impairment irrespective of the worker's degree of permanent
impairment. By operation of cl 11, the worker is entitled to receive
compensation for permanent impairment only if the degree of permanent
impairment is greater than 10%.
43 There is no dispute that the empowering provisions permit the making of a
regulation containing a provision which has the effect of altering the legal
operation of a provision of the Act41. The determinative issues in the appeal are
the extent to which the empowering provisions on their proper construction
permit a provision of that nature to have retrospective operation and whether
cl 11 is properly characterised as a provision "of a saving or transitional nature".
Retrospectivity
44 There are two senses in which a provision of a regulation might be said to
have retrospective operation42. The distinction between them has significance for
the operation of ss 30 and 39 of the Interpretation Act, which, like other
41 Cf Victorian Stevedoring and General Contracting Co Pty Ltd and Meakes v
Dignan (1931) 46 CLR 73; [1931] HCA 34; Public Service Association and
Professional Officers' Association Amalgamated (NSW) v Director of Public
Employment (2012) 87 ALJR 162 at 168 [18]; 293 ALR 450 at 456-457; [2012]
HCA 58.
42 The Commonwealth v SCI Operations Pty Ltd (1998) 192 CLR 285 at 309 [57];
[1998] HCA 20, referring to Coleman v Shell Co of Australia (1945) 45 SR (NSW)
27 at 30-31.
-- 23 of 31 --
Gageler J
18.
provisions of the Interpretation Act, apply to all Acts and regulations unless "the
contrary intention appears"43. The distinction in turn has significance for the
construction of the empowering provisions.
45 First, a provision of a regulation might be said to have retrospective
operation if, and to the extent that, the provision is taken to have had legal
operation at or from a past date. The potential for a provision of a regulation to
have retrospective operation in that straightforward temporal sense is constrained
by s 39(1)(b) of the Interpretation Act.
46 Section 39(1)(a) of the Interpretation Act provides that a regulation or
other statutory rule "shall be published on the NSW legislation website".
Section 39(1)(b) provides that the regulation or other statutory rule "commences
on the day on which it is so published or, if a later day is specified in the rule for
that purpose, on the later day so specified". Section 39(1)(b) as originally
enacted used the words "shall take effect". The word "commences" was
substituted by amendment in 200944 to be consistent with the expression used
elsewhere in the Interpretation Act in connection with Acts generally45. The
word "commences" and the words "shall take effect" have the same meaning:
they refer to when legal operation begins46.
47 By limiting when legal operation can begin to a date on or after the date
on which a regulation is published, s 39(1)(b) of the Interpretation Act has the
effect of preventing a provision of a regulation from having legal operation at or
from a date before the regulation is published. That is to say, it imposes an
absolute prohibition against backdating the legal effect of a provision of a
regulation47, applicable to all regulations except in so far as the contrary intention
appears in an empowering statute.
48 Secondly, a provision of a regulation might be said to have retrospective
operation if, and to the extent that, the regulation operates to alter rights or
liabilities which have already come into existence by operation of prior law on
past events. The potential for a regulation to have retrospective operation in that
43 Section 5(2) of the Interpretation Act.
44 Schedule 2.25 [1] to the Statute Law (Miscellaneous Provisions) Act 2009 (NSW).
45 Part 3 of the Interpretation Act.
46 Cf Broadcasting Co of Australia Pty Ltd v The Commonwealth (1935) 52 CLR 52
at 60; [1935] HCA 3.
47 Pearce and Argument, Delegated Legislation in Australia, 4th ed (2012) at 473
[31.7].
-- 24 of 31 --
Gageler J
19.
substantive sense is affected in part by s 30 of the Interpretation Act and in part
by the "general rule of the common law" stated by Dixon CJ in Maxwell v
Murphy48.
49 Section 30 of the Interpretation Act applies if, and to the extent that, a
provision of a regulation expressly or impliedly alters an Act or statutory rule by
"amendment" (changing its legal meaning49) or "repeal" (subtracting from the
scope of its legal operation50). By force of s 30(1)(c), unless the contrary
intention appears in the regulation containing the provision effecting the
amendment or repeal, such an amendment or repeal does not "affect any right,
privilege, obligation or liability acquired, accrued or incurred under the Act or
statutory rule". The section is directed to the effect of a valid regulation rather
than to the scope of regulation-making power.
50 The general common law rule stated by Dixon CJ in Maxwell v Murphy
takes over where s 30 of the Interpretation Act leaves off51. The rule is that52:
"a statute changing the law ought not, unless the intention appears with
reasonable certainty, to be understood as applying to facts or events that
have already occurred in such a way as to confer or impose or otherwise
affect rights or liabilities which the law had defined by reference to the
past events."
51 The common law rule applies to the construction of an empowering
statute as much as to the construction of a regulation. Unless the contrary
intention appears with reasonable certainty, the empowering statute is construed
so as not to confer power to make regulations which alter existing rights or
liabilities. The joint reasons in Broadcasting Co of Australia Pty Ltd v The
Commonwealth53 illustrate that proposition. The holding of the majority in
Australian Coal and Shale Employees Federation v Aberfield Coal Mining Co
Ltd54 does not contradict it. As explained in Toowoomba Foundry Pty Ltd v The
48 (1957) 96 CLR 261 at 267; [1957] HCA 7.
49 Attorney-General (WA) v Marquet (2003) 217 CLR 545 at 564 [46]; [2003] HCA
67.
50 Mathieson v Burton (1971) 124 CLR 1 at 12; [1971] HCA 4.
51 Maxwell v Murphy (1957) 96 CLR 261 at 266.
52 Maxwell v Murphy (1957) 96 CLR 261 at 267.
53 (1935) 52 CLR 52 at 60-61.
54 (1942) 66 CLR 161 at 176, 185, 186; [1942] HCA 23.
-- 25 of 31 --
Gageler J
20.
Commonwealth55, that holding turned on s 48(2) of the Acts Interpretation Act
1901 (Cth) in the form in which it existed between 193756 and 199057. That
specific statutory rule of construction did not reflect the common law and has no
equivalent in the Interpretation Act.
52 A contrary intention sufficient to displace s 30 of the Interpretation Act
must ordinarily appear with the same reasonable certainty as is needed to
displace the general common law rule58. A contrary intention need not be
express and its implication, although sometimes referred to as "necessary
implication"59, has not been confined to those extreme circumstances in which
alteration of an existing right or liability "cannot be avoided without doing
violence to the language of the enactment"60. The cases, rather, demonstrate that
a contrary intention will appear with the requisite degree of certainty if it appears
"clearly" or "plainly" from the text and context of the provision in question that
the provision is designed to operate in a manner which is inconsistent with the
maintenance of an existing right or liability61.
Empowering provisions
53 The empowering provisions are best set out at this point. Clause 1 of
Pt 20 of Sched 6 to the Act provides in relevant part:
55 (1945) 71 CLR 545 at 569, 575; [1945] HCA 15.
56 When inserted by the Acts Interpretation Act 1937 (Cth).
57 When repealed and re-enacted in a different form by the Law and Justice
Legislation Amendment Act 1990 (Cth).
58 Carr v Finance Corporation of Australia Ltd [No 2] (1982) 150 CLR 139 at 151-
152; [1982] HCA 43.
59 Cf Rodway v The Queen (1990) 169 CLR 515 at 518; [1990] HCA 19.
60 Cf Mathieson v Burton (1971) 124 CLR 1 at 22, quoting In re Athlumney; Ex parte
Wilson [1898] 2 QB 547 at 551-552.
61 Eg Victrawl Pty Ltd v Telstra Corporation Ltd (1995) 183 CLR 595 at 620-621;
[1995] HCA 51; Attorney-General (Q) v Australian Industrial Relations
Commission (2002) 213 CLR 485 at 492 [6], 494 [14], 505 [52]; [2002] HCA 42;
Australian Education Union v General Manager of Fair Work Australia (2012)
246 CLR 117 at 134 [27]; [2012] HCA 19.
-- 26 of 31 --
Gageler J
21.
"(1) The regulations may contain provisions of a saving or transitional
nature consequent on the enactment of ... any ... Act that amends
this Act.
(2) A provision referred to in subclause (1) may, if the regulations so
provide, take effect as from the date of assent to the Act concerned
or a later day.
(3) To the extent to which a provision referred to in subclause (1) takes
effect from a date that is earlier than the date of its publication ...
the provision does not operate so as:
(a) to affect, in a manner prejudicial to any person (other than
the State or an authority of the State), the rights of that
person existing before the date of its publication ... or
(b) to impose liabilities on any person (other than the State or an
authority of the State) in respect of any thing done or
omitted to be done before the date of its publication ..."
54 Clause 5 of Pt 19H of Sched 6 provides in full:
"(1) Regulations under Part 20 of this Schedule that contain provisions
of a saving or transitional nature consequent on the enactment of
the 2012 amending Act may, if the regulations so provide, take
effect as from a date that is earlier than the date of assent to
the 2012 amending Act.
(2) Clause 1(3) of Part 20 does not limit the operation of this clause.
(3) A provision referred to in subclause (1) has effect, if the regulations
so provide, despite any other provision of this Part.
(4) The power in Part 20 to make regulations that contain provisions of
a saving or transitional nature consequent on the enactment of
the 2012 amending Act extends to authorise the making of
regulations whereby the provisions of the Workers Compensation
Acts are deemed to be amended in the manner specified in the
regulations."
-- 27 of 31 --
Gageler J
22.
The reference in cl 5(4) to "the Workers Compensation Acts" is to the Act and to
the Workplace Injury Management and Workers Compensation Act 1998
(NSW)62.
55 Within the structure of the empowering provisions, it is the opening words
of cl 1(1) of Pt 20 of Sched 6 which permit the making under s 280(1) of the Act
of a regulation which contains a provision "of a saving or transitional nature"
consequent on the enactment of the 2012 amending Act. A provision of such a
nature will, by definition, either save a thing so as to remain governed by the Act
as it existed before the enactment of the 2012 amending Act or transition the
thing so as to be governed by the Act as amended by the 2012 amending Act.
The various subclauses of cl 5 of Pt 19H are directed to spelling out the extent of
the permissible legal operation of a provision of that nature.
56 Clause 5(1) of Pt 19H is addressed specifically to the temporal operation
of the provision. Read against the background of s 39(1)(b) of the Interpretation
Act and cl 1(2) of Pt 20, cl 5(1) operates to remove all prohibition against
backdating the provision. It specifically allows the provision, if so expressed, to
have legal operation at or from any date before the regulation is published.
57 Clause 5(2) of Pt 19H is adjectival to cl 5(1) in that cl 5(2) is addressed
solely to the substantive operation of a backdated provision during the period of
backdating. Read against the background of s 30(1)(c) of the Interpretation Act
and cl 1(3) of Pt 20, cl 5(2) does no more than to ensure that the backdating
permitted by cl 5(1) results in the backdated provision being taken to have so
operated in accordance with its terms during the period of backdating. It ensures
that the provision is taken to have had the backdated operation notwithstanding
that the provision in so operating might prejudicially affect rights which a person
may have had before the date of publication of the regulation and
notwithstanding that the provision in so operating might impose liabilities on a
person in respect of things done or omitted to be done before the date of
publication.
58 Complementing cll 5(1) and 5(2), but contrasting with the narrower
temporal focus of those subclauses, cll 5(3) and 5(4) of Pt 19H are addressed to
the substantive operation of a provision of a savings or transitional nature
consequent on the enactment of the 2012 amending Act. In referring to "[a]
provision referred to" in cl 5(1), cl 5(3) of Pt 19H is in that respect to be read as
referring to a provision answering the description in the opening words of cl 5(1).
The application of cl 5(3), like the application of cl 5(4), is not dependent on
whether or not the provision has been backdated.
62 Section 3(1AA) of the Act and s 4(1) of the Workplace Injury Management and
Workers Compensation Act 1998 (NSW).
-- 28 of 31 --
Gageler J
23.
59 The effect of cl 5(3) of Pt 19H, as foreshadowed in cl 3 of Pt 19H, is that
any provision of a savings or transitional nature consequent on the enactment of
the 2012 amending Act contained in a regulation made under s 280(1) as
permitted by cl 1(1) of Pt 20 can have legal effect to override the operation of
any other provision of Pt 19H, including cl 15. The broader and overlapping
effect of cl 5(4) of Pt 19H is that any such provision can deem any provision of
the Act to be amended in any manner "specified" in the provision: that is to say,
in any manner clearly set out in the provision.
60 Clauses 5(3) and 5(4) of Pt 19H so operate to ensure that a provision
contained in a regulation which cl 1(1) of Pt 20 of Sched 6 permits to be made
under s 280(1) of the Act, being a provision of a savings or transitional nature
consequent on the enactment of the 2012 amending Act, is within the permitted
subject-matter of regulation-making power (and is not "inconsistent" with the Act
within the meaning of s 280(1))63 notwithstanding that the substantive operation
of the provision in accordance with its terms is to override any other provision in
Pt 19H or to alter the legal meaning of any provision of the Act.
61 The underlying legislative purpose is evidently to provide a flexible means
of making adjustments to the savings and transitional provisions otherwise
contained in Pt 19H which does not require those adjustments to be embodied in
further amendments to the Act. The flexible means provided is the conferral on
the executive of permission to make regulations containing such other provisions
of a savings or transitional nature as may be considered by the executive to be
appropriate, subject to disallowance of any provision of a regulation so made by
resolution of either House of Parliament under s 41 of the Interpretation Act.
That parliamentary oversight is facilitated by the requirement of s 40 of the
Interpretation Act for written notice of the regulations to be tabled in both
Houses of Parliament, and is enhanced by the requirement under s 4 of the
Legislation Review Act 1987 (NSW) for the existence of a joint committee of
members of Parliament (known as the Legislation Review Committee), the
functions of which include, under s 9 of that Act, considering all regulations
while they are subject to disallowance and considering whether the special
attention of Parliament should be drawn to any such regulation on any ground.
That parliamentary oversight, together with the scope for judicial review of the
exercise of the regulation-making power, diminishes the utility of the pejorative
labelling of the empowering provisions as "Henry VIII clauses"64. The
empowering provisions reflect not a return to the executive autocracy of a Tudor
monarch, but the striking of a legislated balance between flexibility and
63 Cf Origin Energy LPG Ltd v Bestcare Foods Ltd [2007] NSWCA 321 at [15].
64 Pearce and Argument, Delegated Legislation in Australia, 4th ed (2012) at 22
[1.23].
-- 29 of 31 --
Gageler J
24.
accountability in the working out of the detail of replacing one modern complex
statutory scheme with another65.
62 In pursuing the purpose of providing a flexible means of making
adjustments to the savings and transitional provisions otherwise contained in
Pt 19H, each of cll 5(3) and 5(4) of Pt 19H also manifests a sufficiently clear
legislative intention that a provision which meets the description to which it
refers – a provision of a savings or transitional nature consequent on the
enactment of the 2012 amending Act – is to operate in accordance with its terms.
This is so even if the provision is inconsistent with the maintenance of a right or
liability which had come into existence under the Act before the enactment of
the 2012 amending Act and even if that right or liability would have continued to
exist by force of another provision of Pt 19H had the regulation containing the
provision not been made. The legislative purpose of permitting a regulation of a
transitional nature consequent on the enactment of the 2012 amending Act, in
addition to a regulation of a saving nature consequent on the enactment of
the 2012 amending Act, would be stifled were a provision of a transitional nature
to be limited to a provision having no effect on such an existing right or liability.
The legislative purpose would also be substantially impeded were the
empowering provisions to be construed asymmetrically, to permit alteration of an
existing right or liability only if beneficial to a worker.
Characterisation of clause 11
63 Clause 11 of Sched 8 to the Regulation provides for a class of claims,
which had been governed by the Act as it existed before the enactment of
the 2012 amending Act, to be governed by the Act as amended by the 2012
amending Act. That is sufficient for cl 11 to be characterised as a provision of a
transitional nature.
64 As the Transitional Regulation was expressed by cl 2 to come into
operation on a date after its publication, cll 5(1) and 5(2) of Pt 19H are not
engaged.
65 Clause 11 provides in clear terms that an amendment to s 66 of the Act
made by Sched 2 to the 2012 amending Act extends to a claim for compensation
made before 19 June 2012. It thereby expresses a contrary intention for the
purposes of s 30(1)(c) of the Interpretation Act. Even if cl 11 had not gone on to
provide that cl 15 of Pt 19H of Sched 6 to the Act is to be read "subject to" that
provision, the substantive provision which cl 11 quite clearly sets out would have
65 Cf Bottomley, "The Notional Legislator: The Australian Securities and
Investments Commission's Role as a Law-Maker", (2011) 39 Federal Law Review
1 at 23-24.
-- 30 of 31 --
Gageler J
25.
been sufficient to engage cl 5(3) to override the operation of cl 15. In going on
so to provide, cl 11 also engages cl 5(4) to deem cl 15 to be amended so as to be
so overridden.
Conclusion
66 Contrary to the view to which the Court of Appeal was persuaded, cl 11 is
within the regulation-making power conferred by s 280(1) of the Act and the
empowering provisions.
67 The appeal should be allowed. I agree with the form of order proposed by
French CJ, Crennan, Kiefel and Keane JJ.
-- 31 of 31 --