5.2 The delegation and therefore the termination notice are valid
27 In my view, notwithstanding the careful arguments of his counsel, the applicant has not established that the delegation and notice of termination are invalid.
28 First, the applicant submitted that delegations should be construed strictly literally, particularly where, as here, the power which is the subject of the delegation can be exercised so as to affect adversely the rights of individuals. It followed, in the applicant's submission, that the delegation was invalid as item 22 of Schedule B to the instrument of delegation provided only that the power to issue a termination notice may be delegated relevantly to a DOCM-A who may or may not hold the substantive rank of Lieutenant Colonel or a higher rank. In support of this approach, the applicant relied upon the decisions in Perpetual Trustee Co (Canberra) Ltd v Commissioner for ACT Revenue (1994) 119 FLR 38 (Perpetual Trustee), followed by the Administrative Appeals Tribunal in Parks Holdings Pty Ltd v Chief Executive Officer of Customs [2001] AATA 562 (Parks Holdings (AAT)) at [46].
29 I agree with the respondent, however, that instruments of delegation must be construed in line with ordinary principles of statutory construction, including applicable statutory provisions. Contrary to the applicant's submissions, the decisions in Perpetual Trustee and Parks Holdings do not stand as authority for the proposition that a separate and distinct rule of construction applies to instruments of delegation to the effect for which the applicant contends. To the contrary, Goldberg J in Parks Holdings Pty Ltd (t/as Gladston Chemicals) v Chief Executive Officer of Customs [2004] FCA 820; (2004) 81 ALD 365 held that:
87. Of course, an instrument of delegation is not legislation but, in principle, the manner in which it is construed is guided by the authorities regarding statutes. There is no reason to construe an instrument of delegation more strictly.
30 In turn, in Perpetual Trustee, Miles CJ held that, as the power to compel the provision of information is a power whose exercise is likely to affect the individual's rights adversely, an instrument which delegates such a power "should not be construed loosely" (at 45). Accordingly, Miles CJ held at 45 that "the instrument of delegation which delegates the power to 'request' further information under s 18 cannot be construed as a delegation by the Commissioner to the respondent of the power under s 18(2) of the Taxation (Administration) Act to require a person to attend to answer questions." As such, the decision in Perpetual Trustee does no more than apply the principle of legality which is generally applicable to statutory construction, to the construction of the instruments of delegation, namely, that it is presumed that the Parliament does not intend to interfere with fundamental rights, freedoms and immunities save by "unmistakeable and unambiguous language": Coco v The Queen (1994) 179 CLR 427 at 436-437 (Mason CJ, Brennan, Gaudron and McHugh JJ); see also e.g. Electrolux Home Products Pty Ltd v Australian Workers' Union (2004) 221 CLR 309; [2004] HCA 40 at [21] (Gleeson CJ).
31 Secondly, the delegation is limited to officers holding particular positions. There is no requirement under reg 119 to nominate or name a specific person to whom the powers are delegated. That being so, there is no reason why the instrument of delegation could not validly delegate the exercise of power to an unnamed person or persons identified by reference to the particular office that they may occupy from time to time, subject to the requirement in reg 119 that the person also hold the rank of LTCOL or higher: Owendale Pty Limited v Anthony (1966) 117 CLR 539 (Owendale) at 563-564 (Windeyer J) at 587 and 598 (Taylor J (with whose reasons Barwick CJ relevantly agreed at 569)) and 611 (Owen J) applying Noble v Commonwealth (1943) 17 ALJ 184 (Noble) at 185 (Starke J).
32 Thirdly, the fact that the delegation is not expressly limited to officers holding the requisite rank does not mean that the delegation seeks impermissibly to authorise an officer holding a lower rank to exercise the power to issue a notice of termination, or even a person who is not an officer. The question remains one of construction. That question must be resolved by ordinary principles of construction which require that the delegation be read in context including by reference to the legislation pursuant to which it was made and with which it must be consistent (see by analogy Master Education Services Pty Limited v Ketchell [2008] HCA 38; (2008) 236 CLR 101 at [19] (Gummow A-CJ, Kirby, Hayne, Crennan and Kiefel JJ)). Subject therefore to a specific indication to the contrary, the delegation should be read in a way that promotes its purpose (One.Tel Limited v Australian Communications Authority (2000) 110 FCR 125 at [64] (Hill J) by analogy). That purpose would not be served by reading the delegation divorced from its context and the regulations pursuant to which it is made in line with the applicant's strictly literal approach.
33 The constructional choice posed therefore by the width of the language used in the delegation is resolved by reading the delegation in line with these principles as necessarily or implicitly limited by the requirement that the delegate hold an office consistent with reg 119 and not merely the position of (relevantly) DOCM-A. By analogy in Owendale, Windeyer J rejected the plaintiff's contention that the power to delegate should have been expressly exempted from the delegation in question because the statutory power to delegate contained that exemption. Rather Windeyer J held that "the extent of the delegation is necessarily limited by the extent of the power to delegate, and I can see no reason why the Minister should say expressly delegata potestas non potest delegari." Another way of reaching the same result is to read the delegation subject to the enabling legislation and so as not to exceed the power to delegate in reg 119 in line with s 46(1)(c) of the Legislation Act and equivalent common law principles.
34 Importantly in this regard, the delegation does not purport to authorise a person holding a lower rank than LTCOL to exercise the power to issue a notice of termination contrary to reg 119(1). To the contrary, since the delegation came into effect, only an officer holding a substantive rank of LTCOL or higher could hold the position of DOCMA under the requirements for that position: see below at [37(2)]. As such, the terms of the instrument of delegation do not exclude the drawing of this implication. This is not therefore a case like Parks Holding (FCA) where the instrument of delegation in clear and unequivocal terms identified the wrong power as being the subject of the delegation. Nor, contrary to the applicant's submissions, does the failure by the delegation in Schedule B (Army) to refer expressly to the requirements of reg 119 as to rank in contrast to the delegations adopted in Schedules A and C (Navy and Air Force) provide a sound basis for inferring an intention to authorise Army officers holding a lower rank to exercise the power. That being so, there is no reason in my view why the instrument of delegation cannot and should not be read compatibly with reg 119.
35 In the fourth place, even if the delegation could be construed as authorising a person outside the limits of reg 119(1) to exercise the power, in this case the power to issue the termination notice was exercised by COL Garraway as the delegate of the Governor-General within the lawful boundaries of the statutory power. As Brennan J explained, sitting as President of the Administrative Appeals Tribunal in Re Reference Under Section 11 of Ombudsman Act 1976 for an Advisory Opinion; ex parte Director-General of Social Services (1979) 2 ALD 86 at 93 in a passage on which the respondent placed particular weight:
Whenever the validity of an act is in question, it is necessary to distinguish between the act and the effect which the law attributes to it. "Validity" is concerned with the legal effect of an act, with the correspondence between the effect which an act is proposed to have and the effect which the law attributes to it. When the law attributes to an act the same effect as the effect which an act is proposed to have, the act is said to be valid for the purpose of achieving that effect. …
An act done in purported exercise of the statutory power is valid if the act falls within the statutory provision which confers the power. Prima facie an act will not fall within the statute unless it be done by the person in whom the statute reposes the power (whom I shall call "the authority"). Validity is thus dependent upon the identity of the authority and the doer of the act.
36 Those principles apply in the present case, as the respondent contends. Here the act is the giving of the termination notice by COL Garraway in his alleged capacity as a delegate of the Governor-General. Specifically, it is not in issue that:
(1) the delegation relevantly delegated to "DOCM-A" the power pursuant to reg 85(2) of the Personnel Regulations to issue a termination notice to an officer to the rank of CAPT;
(2) the termination notice was issued to the applicant who held the rank of CAPT; and
(3) at the time that the termination notice was issued, COL Garraway held the position of DOCM-A and the substantive rank of LTCOL or higher, the rank of COL being higher than LTCOL.
37 As such, in the particular case the termination notice was issued by a person holding a position in line with the requirements of the delegation and a rank in line with the requirements of reg 119(1)(b) of the Personnel Regulations. Furthermore, the evidence establishes that since the delegation came into effect on 12 December 2013:
(1) each of the positions to which the power to issue a termination notice under reg 85(2) of the Personnel Regulations has been delegated (i.e. CDF, CA, DCA, DGCM-A, DOCM-A and SO1 in DOCM-A) has been occupied by an officer of a substantive rank of LTCOL or higher;
(2) each of the positions to which the power to issue a termination notice under reg 85(2) of the Personnel Regulations has been delegated could have been occupied only by an officer of a substantive rank of Lieutenant Colonel or higher because the position requirements for each of these positions required that the officer hold a substantive rank of LTCOL or higher; and
(3) all officers temporarily acting in the positions of DGCM-A and DOCM-A have held the substantive rank of Lieutenant Colonel or higher.
38 Finally, the respondent submitted that, in any event the delegation should be read down within power pursuant to s 46(2) of the Acts Interpretation Act 1901 (Cth) (Acts Interpretation Act). That section provides that:
If any instrument so made would, but for this subsection, be construed as being in excess of the authority's power, it is to be taken to be a valid instrument to the extent to which it is not in excess of that power.
39 Section 13 of the Legislative Instruments Act 2003 (Cth) (Legislation Act 2003) applies the same principles to legislative instruments. In this regard the respondent contended that the delegation is not a legislative instrument within the meaning of s 8 of the Legislation Act 2003 (Cth) (formerly titled the Legislative Instruments Act 2003 (Cth)), referring to s 8(6) and reg 6, item 1, of the Legislation (Exemptions and Other Matters) Regulation 2015 (Cth) providing that an instrument of delegation, including any instructions to the delegate, is a class of instrument that is not a "legislative instrument". Nor, the respondent contended, is the delegation a "notifiable instrument" within the meaning of s 10 of the Legislation Act 2003.
40 With respect, however, those submissions appear to have overlooked that when the delegation was made on 12 December 2013, a "legislative instrument" was defined in s 5 of the then Legislative Instruments Act: the provisions defining a "legislative instrument" on which the respondent relies were enacted by the Acts and Instruments (Framework Reform) Act 2015 (Cth) (the Framework Reform Act) which commenced only on 5 March 2016. Transitional clause 168 of Part 7 of Schedule 1 to the Framework Reform Act provides that an instrument made before the commencement date which was a legislative instrument under the Legislative Instruments Act is taken to continue to be such despite the amendments and vice versa. As such, the question of whether the delegation constituted a legislative instrument would seem to be determined by reference to the Legislative Instruments Act prior to the amendments in 2016, to which no argument was directed. The Legislative Instruments Act operated in relation to instruments that were "of a legislative character" and were made in the exercise of power delegated by the Parliament (s 5(1)), with an instrument being taken to be of a legislative character if it determined the law or altered its content rather than applying the law in a particular case, and had the direct or indirect effect of effecting a privilege or interest, imposing an obligation, creating a right, or varying or removing an obligation or right. That question is not necessarily a straightforward one and indeed concerns about difficulties in applying the definition of a legislative instrument led to the enactment of the new definition in s 8(4) of the Legislation Act: Explanatory Memorandum to the Acts and Instruments (Framework Reform) Bill 2014 at p. 10 (pointing to the circularity of the then definition).
41 In circumstances where these issues were not the subject of argument, it would not be appropriate for me to endeavour to resolve them. Nor, for the reasons already given, do I consider that it is necessary to read down the delegation in reliance upon s 46(2) of the Acts Interpretation Act. However, as the respondent pointed out, in any event s 46 of the Acts Interpretation Act "is essentially a statutory invocation of the common law principles of severance and reading down which the court would still apply to the construction of the delegation even if it considered that s 46 did not apply to construction of the delegation": see for example, Federal Commissioner of Taxation v Munro (1926) 38 CLR 153 at 180 (Isaacs J). As such, if the delegation were construed as intended to confer power in excess of that permitted by reg 119, it suffices to say that the delegation could be read down by s 46(2) of the Acts Interpretation Act or alternatively at common law.