[2025] FCAFC 188
General information, not legal advice.
Federal Court of Australia (Full Court)
2025-12-16
Shariff JJ
Original judgment source is linked above.
Australian Building and Construction Commissioner v Pattinson [2022] HCA 13; (2022) 274 CLR 450
Australian Competition and Consumer Commission v Employsure Pty Ltd [2023] FCAFC 5; 407 ALR 302
Australian Competition and Consumer Commission v Reckitt Benckiser (Australia) Pty Ltd [2016] FCAFC 181; 340 ALR 25
Australian Competition and Consumer Commission v TPG Internet Pty Ltd [2013] HCA 54; 250 CLR 640
Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8; 165 FCR 560
Commonwealth of Australia v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482
Dinsdale v The Queen [2000] HCA 54; (2000) 202 CLR 321
Electoral Commissioner of the Australian Electoral Commission v Laming [2024] FCAFC 109
Electoral Commissioner of the Australian Electoral Commission v Laming (No 2) [2023] FCA 917
Electoral Commissioner of the Australian Electoral Commission v McQuestin [2024] FCA 287
House v R [1936] HCA 40; 55 CLR 499
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298
Laming v Electoral Commissioner of the Australian Electoral Commission [2025] HCA 31; 99 ALJR 1260
Markarian v The Queen [2005] HCA 25; 228 CLR 357
Singtel Optus Pty Ltd v Australian Competition and Consumer Commission [2012] FCAFC 20
Smith v Oldham [1912] HCA 61; 15 CLR 355
Trade Practices Commission v CSR Ltd [1990] FCA 762; [1991] ATPR ⁋41-076
Volkswagen Aktiengesellschaft v Australian Competition and Consumer Commission [2021] FCAFC 49; 284 FCR 24
Wong v R [2001] HCA 64; 207 CLR 584
Administrative and Constitutional Law and Human Rights
In paragraph 21(a) - (c) the references to "2021" have been changed to "2022"
In paragraph 70, the reference to "51,152-52,153" has been amended to "52,152-52,153"
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
(a) reasonably prominent; > > (b) legible at a distance at which the communication was intended to be read; and > > (c) in a text that contrasted with the background on which the text appeared,
as required by ss 11(3)(a), (b) and (d) of the Authorisation Determination and s 321D(7) of the Electoral Act.
...First, the contraventions were isolated incidents across an extensive electoral advertisement programme. Second, the contraventions were limited, having occurred on three occasions over a period of only one week. Third, there is no evidence that the contraventions were deliberate. Fourth, there is no evidence that any problems with the notification of the required particulars were brought to Mr McQuestin's attention, or that he was aware of such issues during the period of the contraventions. Fifth, the contravening advertisements contained deficient particulars, not the absence of particulars. It was not a case where no steps were taken to comply with s 321D(5) of the Electoral Act.
(a) $10,000 for the advertisement published on 14 May 2022;
(b) $15,000 for the advertisement published on 19 May 2022; and
(c) $15,000 for the advertisement published on 20 and 21 May 2022.
The admitted contraventions undermined the important objective of allowing voters to know who is communicating electoral matter and accordingly protecting Australia's system of representative democracy. In my view, penalties of that magnitude are required to ensure that the Victorian Division of the Liberal Party, as a major participant in Australia's political process and government, takes greater care to comply with its obligations under Part XXA of the Electoral Act. A higher penalty is warranted in respect of the [19 May] Advertisement because, as discussed above, that advertisement did not otherwise identify the person or political party on whose behalf the advertisement was placed. It therefore had greater potential to cause harm to the democratic process. A higher penalty is also warranted in respect of the Second Asher Advertisement because it was published in two editions of the Geelong Advertiser on two different days, resulting in a larger volume of communications.
...[E]rror may be inferred from a result that cannot have been arrived at without some kind of operative error. The influence of the reasons given for the result arrived at on this process will vary. Reasons are not to be ignored, but nor do they necessarily confine in a rigid or inflexible way the scope of the appellate inquiry. It may be legitimate to have regard to what was said and not said in order to identify how the asserted erroneous result was reached. But for error to be inferred from the result, the result must be one which was not open on the evidence or facts found or agreed.
Manifest inadequacy of sentence, like manifest excess, is a conclusion. A sentence is, or is not, unreasonable or plainly unjust; inadequacy or excess is, or is not, plainly apparent. It is a conclusion which does not depend upon attribution of identified specific error in the reasoning of the sentencing judge and which frequently does not admit of amplification except by stating the respect in which the sentence is inadequate or excessive...
It has been not uncommon, for the last half century at least, to make provision in electoral laws requiring advertisements, pamphlets and other election literature to bear the name of the printer and of the person by whose authority it is issued...It is a notorious fact that many persons rely upon others for their guidance, especially in forming their opinions. It is obvious, therefore, that the freedom of choice of the electors at elections may be influenced by the weight attributed by the electors to printed articles, which weight may be greater or less than would be attributed to those articles if the electors knew the real authors. It was contended that the electors should be allowed to form their own opinions from the abstract arguments addressed to them, irrespective of the persons by whom those arguments are put forward. But it is notorious, again, that many electors are unable to do so; and rely upon authority; and they may be less likely to be misled or unduly influenced if they know the authority upon which they are asked to rely. Parliament may, therefore, think that no one should be allowed by concealing his name to exercise a greater influence than he could command if his personality were known.
The Liberal Party VIC is a major political party that regularly engages in electoral campaigns and will likely participate in electoral campaigns in the future.
[54] Two aspects of the Full Court's reasoning in this passage from Reckitt Benckiser deserve particular emphasis here. The first is their Honours' recognition that the maximum penalty is "but one yardstick that ordinarily must be applied" and must be treated "as one of a number of relevant factors". As has already been seen, other factors relevant for the purposes of the civil penalty regime include those identified by French J in [Trade Practices Commission v CSR Ltd [1990] FCA 762].
[55] The second point is that the maximum penalty does not constrain the exercise of the discretion under s 546 (or its analogues in other Commonwealth legislation), beyond requiring "some reasonable relationship between the theoretical maximum and the final penalty imposed". This relationship of "reasonableness" may be established by reference to the circumstances of the contravenor as well as by the circumstances of the conduct involved in the contravention. That is so because either set of circumstances may have a bearing upon the extent of the need for deterrence in the penalty to be imposed. And these categories of circumstances may overlap.
[125] First, the Court must be persuaded that the penalty proposed by the parties is appropriate. The agreement of the parties cannot bind the Court in any circumstances to impose a penalty which it does not consider to be appropriate.
[126] Second, if the Court is persuaded of the accuracy of the parties' agreement as to facts and consequences, and that the agreed penalty jointly proposed is an appropriate remedy in all the circumstances, it would be highly desirable in practice for the Court to accept the parties' proposal and therefore impose the proposed penalty. The desirability of the Court accepting a proposed agreed penalty which it is persuaded is an appropriate penalty derives primarily from a public policy consideration; the promotion of predictability of outcome in civil penalty proceeding. Predictability of outcome encourages corporations to acknowledge contraventions, which, in turn, assists in avoiding lengthy and complex litigation. It should be emphasised, however, that this public policy consideration is but one of the relevant considerations to which the Court must have regard and, more significantly, it cannot override the statutory directive for the Court to impose a penalty that is determined to be appropriate.
[127] Third, in considering whether the agreed and jointly proposed penalty is an appropriate penalty, it is necessary to bear in mind that there is no single appropriate penalty. Rather, there is a permissible range of penalties within which no particular figure can necessarily be said to be more appropriate than another. The permissible range is determined by all the relevant facts and consequences of the contravention and the contravener's circumstances. An agreed and jointly proposed penalty may be considered to be "an" appropriate penalty if it falls within that permissible range. It is unlikely to be considered an appropriate penalty if it falls outside that range.
[128] It should be emphasised in this context, however, that even though the process in determining whether an agreed and jointly proposed penalty is an appropriate penalty involves or includes determining whether that penalty falls within the permissible range of penalties, having regard to all the relevant facts and circumstances, it does not follow that the Court's task can be said to amount to no more than determining whether the proposed penalty falls within the permissible range, as the Commission's submission tended to suggest. Nor can it be said that the Court is bound to start with the proposed penalty and to then limit itself to considering whether that penalty is within the permissible range.
[129] Fourth, in considering whether the proposed agreed penalty is an appropriate penalty, the Court should generally recognise that the agreed penalty is most likely the result of compromise and pragmatism on the part of the regulator, and to reflect, amongst other things, the regulator's considered estimation of the penalty necessary to achieve deterrence and the risks and expense of the litigation had it not been settled. The fact that the agreed penalty is likely to be the product of compromise and pragmatism also informs the Court's task when faced with a proposed agreed penalty. The regulator's submissions, or joint submissions, must be assessed on their merits, and the Court must be wary of the possibility that the agreed penalty may be the product of the regulator having been too pragmatic in reaching the settlement.
I certify that the preceding forty-five (45) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Rangiah.
(a) $10,000 in respect of the First Asher Advertisement;
(b) $15,000 in respect of the Anti-Coker Advertisement; and
(c) $15,000 in respect of the Second Asher Advertisement.
(a) erred as to the proper construction of s 321D(5) (Ground 1);
(b) as a result of that error of construction, erred in the imposition of penalties (Ground 2);
(c) erred in finding that there was a single contravention, rather than two separate contraventions, in respect of the advertisements which were published in separate editions of the Geelong Advertiser on 20 May 2022 and 21 May 2022 and in imposing a single penalty in respect of those advertisements (Grounds 3 and 4); and
(d) irrespective of the other Grounds, erred in imposing penalties that were manifestly inadequate (Ground 5).
(a) $20,000 for the First Asher Advertisement;
(b) $26,640 for the Anti-Coker Advertisement; and
(c) $26,640 for the Second Asher Advertisement.
(a) the 2022 Australian Federal Election was conducted on 21 May 2022;
(b) in the campaign in the lead up to the Federal Election, the Victorian Liberal Party authorised electoral advertisements to be published throughout Victoria;
(c) on 14, 19, 20 and 21 May 2022, the Geelong Advertiser published its daily newspaper which contained three different forms of advertisements placed by the Victorian Liberal Party;
(d) the number of hardcopy print editions of the Geelong Advertiser distributed on those dates was as follows:
(i) on 14 May 2022, 15,634 copies of the Geelong Advertiser were distributed for retail sale, 5,607 were delivered to subscribers and 266 were delivered to hotels;
(ii) on 19 May 2022, 7,006 copies of the Geelong Advertiser were distributed for retail sale, 3,858 were delivered to subscribers and 269 were delivered to hotels;
(iii) on 20 May 2022, 6,341 copies of the Geelong Advertiser were distributed for retail sale, 3,853 were delivered to subscribers and 273 were delivered to hotels; and
(iv) on 21 May 2022, 15,774 copies of the Geelong Advertiser were distributed for retail sale, 5,583 were delivered to subscribers and 266 were delivered to hotels;
(e) the first form of advertisement, referred to as the "First Asher Advertisement":
(i) was published on 14 May 2022;
(ii) supported Ms Asher, a Liberal Party (Victoria) candidate in Corangamite; and
(iii) contained particulars that were in an extremely small font and nearly illegible;
(f) the second form of advertisement, referred to as the "Anti-Coker Advertisement":
(i) was approved by Mr McQuentin on 18 May 2022;
(ii) was published on 19 May 2022;
(iii) opposed Libby Coker, an Australian Labor Party candidate in Corangamite; and
(iv) contained particulars that were in an extremely small font and nearly illegible;
(g) the third form of advertisement, referred to as the "Second Asher Advertisement";
(i) was published on 20 and 21 May 2022;
(ii) supported Ms Asher; and
(iii) contained particulars that were in an extremely small font and nearly illegible; and
(h) the Victorian Liberal Party is not a legal person and therefore Mr McQuestin, as the officer of the entity who, acting in his actual or apparent authority, engaged in the conduct or made the omission constituting the contravention of s 321D is taken to have contravened that provision.
(a) nature and extent of the contraventions: PJ [58];
(b) nature and extent of any loss or damage suffered because of the contravention: PJ [59]-[62];
(c) circumstances in which the contraventions took place: PJ [63]-[65];
(d) history of similar conduct: PJ [66];
(e) benefit derived as a result of the contravention: PJ [67];
(f) size of the contravenor: PJ [68]-[72];
(g) cooperation: PJ [73]; and
(h) conclusion on penalty: PJ [74]-[77].
(a) the Victorian Liberal Party was the notifying entity such that deterrence was required to be considered by reference to the conduct of a major political party - represented by its Registered Officer and State Director, Mr McQuestin - that had failed to comply with a law directed at protecting the integrity of Australia's democratic process;
(b) the non-compliant advertisements were published on the day of and in immediate days preceding the 2022 Federal Election, and both promoted a Liberal party candidate and attacked a Labor party candidate;
(c) each of the advertisements were communicated to many thousands of people with more than 10,000 print copies distributed on 19 May 2022 and 20 May 2022 and more than 20,000 print copies distributed on 14 May 2022 and 21 May 2022;
(d) as a result of widespread distribution, the advertisements were seen by a significant portion of electors in the relevant electoral division and in adjacent electorates;
(e) despite being aware of the requirements of s 321D(5), Mr McQuestin approved what were plainly non-compliant advertisements;
(f) the Victorian Liberal Party and Mr McQuestin did not have adequate compliance systems or processes in place such that three further non-compliant advertisements were published after a plainly non-compliant advertisement on 15 May 2022 and because no explanation was provided as to that non-compliance, it was to be inferred that they were prepared to run the risk of non-compliance;
(g) the penalty was not to be borne by Mr McQuestin but was instead to be borne by the Victorian Liberal Party which had $20 million in receipts for the relevant financial year and had not suggested it had an incapacity to pay such that the penalties imposed by the primary judge could not be seen as carrying the necessary deterrent sting; and
(h) despite the clear nature of the contraventions, Mr McQuestin's cooperation was late and limited, no regret or remorse was displayed, and no evidence was provided as to the nature of the failures or of any corrective steps that had been taken.
Such penalties would send a proper deterrent message to ensure that major political parties have proper compliance arrangements so that there is no risk of them publishing non-compliant advertisements to tens of thousands of potential voters in the days leading up to an election. Penalties of that magnitude are clearly called for in the present circumstances where there is no real explanation for the wrongdoing, no evidence of improved compliance arrangements, no suggestion of any incapacity to pay, no contrition and only limited co-operation.
5.1 The principles applicable to finding manifest inadequacy
It may not appear how the primary judge has reached the result embodied in his order, but, if upon the facts it is unreasonable or plainly unjust, the appellate court may infer that in some way there has been a failure properly to exercise the discretion which the law reposes in the court of first instance. In such a case, although the nature of the error may not be discoverable, the exercise of the discretion is reviewed on the ground that a substantial wrong has in fact occurred.
(a) the appellant must demonstrate that the penalty is such that there was a misapplication of principle, although when and how the error occurred is not apparent from the judge's reasons: Employsure at [37] citing Wong v R [2001] HCA 64; 207 CLR 584 at [58];
(b) error may be inferred from a result that cannot have been arrived at without some kind of operative error: Reckitt Benckiser at [52];
(c) for error to be inferred, the result must be one which was not open on the evidence or facts as found or agreed: Reckitt Benckiser at [52];
(d) a finding of manifest inadequacy can be supported by reference to specific errors: Reckitt Benckiser at [56];
(e) even if a specific error is not established, it may help to explain the overall result said to be erroneous: Reckitt Benckiser at [56]; Employsure at [38]; and
(f) even if a specific error is established, it does not inexorably flow that the penalty was manifestly inadequate: Employsure at [39].
(a) a penalty of appropriate deterrent value may be guided by the list of factors identified by French J in CSR (the "French Factors"), however these considerations are not to be treated as a "rigid catalogue of matters for attention" as if a legal checklist: Pattinson at [19] citing Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith [2008] FCAFC 8; 165 FCR 560 at [91] (Buchanan J);
(b) the maximum penalty prescribed by statute, although important, is but one yardstick that ordinarily must be applied when considering the quantum of a civil penalty but must not be applied mechanically: Pattinson at [53] affirming Reckitt Benckiser at [155]-[156] (citing Markarian v The Queen [2005] HCA 25; 228 CLR 357 at [31]);
(c) the statutory maximum does not implicitly require that contraventions be graded on a scale of increasing objective seriousness with the maximum reserved exclusively for the worst category of contravening conduct, which tends to focus on desert rather than deterrence: Pattinson at [49], [51];
(d) considerations of deterrence and the protection of the public interest justify the imposition of the maximum penalty where it appears that no lesser penalty will be an effective deterrent against similar contraventions: Pattinson at [50]; and
(e) there must ordinarily be some reasonable relationship between the theoretical maximum and the final penalty imposed, and the relationship of reasonableness may be established by reference to the circumstances of the contravenor and the circumstances of the conduct involved in the contravention insofar as those circumstances provide insight into the extent of the need for deterrence: Pattinson at [55] affirming Reckitt Benckiser at [156].
Considerations of deterrence, and the protection of the public interest, justify the imposition of the maximum penalty where it is apparent that no lesser penalty will be an effective deterrent against further contraventions of a like kind. Where a contravention is an example of adherence to a strategy of choosing to pay a penalty in preference to obeying the law, the court may reasonably fix a penalty at the maximum set by statute with a view to making continued adherence to that strategy in the ongoing conduct of the contravenor's affairs as unattractive as it is open to the court reasonably to do.
(Emphasis added.)
This relationship of "reasonableness" may be established by reference to the circumstances of the contravenor as well as by the circumstances of the conduct involved in the contravention. That is so because either set of circumstances may have a bearing upon the extent of the need for deterrence in the penalty to be imposed. And these categories of circumstances may overlap.
Section 321D(5) fulfils an important public role in strengthening Australia's system of representative democracy by requiring those communicating electoral matter to identify themselves. This allows voters to critically assess the credibility of information when forming political judgments and electing their representatives.
I certify that the preceding sixty-eight (68) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justices Charlesworth and Shariff.
Electoral Commissioner
McQuestin [2025] FCAFC 188
(2015) 258 CLR 482
(2013) 250 CLR 640
(2022) 274 CLR 450
(2000) 202 CLR 321
(1959) 101 CLR 298
(1912) 15 CLR 355
(2021) 284 FCR 24