[2025] FCA 1307
General information, not legal advice.
Federal Court of Australia
2025-10-27
Stellios J
Original judgment source is linked above.
(1) The Minister may, after investigation and report by the appropriate Committee of Inquiry, by notice in writing:
(a) reprimand an approved pharmacist; or
(b) suspend or revoke the approval of the pharmacist under section 90;
and may, at any time, by notice in writing, remove that suspension or restore that approval.
(8) The Minister shall not suspend, further suspend or revoke an approval under the preceding provisions of this section unless, having regard to the evidence before the Committee of Inquiry and the report of the Committee, the Minister is satisfied that the pharmacist has, in relation to or arising out of the approval, been guilty of conduct which is an abuse of that approval or is an abuse or contravention of this Act or the regulations or shows the pharmacist, as the case may be to be unfit to continue to enjoy the approval.
The [Committee] shall inquire into and report to the Minister or the Secretary on any matter referred to the Committee by the Minister or the Secretary in respect of or arising out of the services or conduct of approved pharmacists in connection with the supply of pharmaceutical benefits under Part VII.
The Acts Interpretation Act 1901 (Cth) (AIA)
(1) This Act applies to all Acts (including this Act).
Note: This Act also applies to legislative instruments, notifiable instruments and other instruments: see subsection 13(1) of the Legislation Act 2003 and subsection 46(1) of this Act.
(2) However, the application of this Act or a provision of this Act to an Act or a provision of an Act is subject to a contrary intention.
(1) Where an Act confers a power or function or imposes a duty, then the power may be exercised and the function or duty must be performed from time to time as occasion requires.
(3) Where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws) the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Whether [the applicant] has engaged in conduct involving the supply of pharmaceutical benefits at or from unapproved premises, being premises at [a different address on Plenty Road, South Morang, Vic] and conduct in contravention of -
(a) Part VII of the Act, including the conditions to which the [applicant]'s approval is subject under section 92A of the Act;
(b) Part 5 of the National Health (Pharmaceutical Benefits) Regulation 2017, in respect of the handling of repeat authorisations;
and any other matter that the Committee believes is reasonably incidental or relevant to that inquiry.
(1) "[t]here is no connection between the pharmacy ... and any 'unapproved premises'"; and
(2) the Committee would not be properly constituted for the purposes of the inquiry under s 113 of the NH Act.
I, Blair Comley, Secretary of the Department of Health and Aged Care, revoke the instrument of referral of approved pharmacist, [the applicant] ... , given to the Pharmaceutical Services Federal Committee of Inquiry made pursuant to s 114 of the National Health Act 1953 (the Act) by the former Secretary, Brendan Murphy, on 31 May 2023.
(1) Section 33(3) is inapplicable because s 114 of the NH Act does not confer a power "to make, grant or issue [an] instrument" and, accordingly, the terms of s 33(3) are not satisfied and the power in that provision is not enlivened.
(2) Relying on the majority position taken in Minister for Indigenous Affairs v MJD Foundation Limited (2017) 250 FCR 31; [2017] FCAFC 37 at [135]-[136] (Mortimer J; Perry J agreeing), s 33(1) does not imply a general power to revoke a decision made in the exercise of the power to refer under s 114 of the NH Act.
(3) In any event, the NH Act evinces "a contrary intention" and, consequently, by operation of s 2(2) of the AIA, ss 33(1) and 33(3) are displaced. Section 114 of the NH Act puts in train an adjudicative process which affects rights or liabilities and can only be exercised once.
(1) The power to revoke is an implicit incident of the power to make the referral under s 114 of the NH Act. I will return below to outline the submissions in this respect in more detail.
(2) The power to refer a matter conferred by s 114 is a power to make an "instrument" because, in referring a matter, the Minister or Secretary must necessarily issue something in the nature of a terms of reference, and the terms of reference will have the character of an instrument.
(3) Relying on the view of Perram J in MJD Foundation, s 33(1) operates to presume that the power can be re-exercised to revoke the initial exercise of power. The contrary view of Mortimer J (with whom Perry J agreed) was not necessary to the decision and is not binding.
As I have noted above, in the modern statutory context, the proper construction of statutory powers and functions in terms of the manner and occasion for their exercise and performance will generally be ascertainable without resort to s 33(1) at all.
[W]hat a review of the authorities demonstrates is that in most cases it is the text, context and purpose of the particular statutory scheme in issue which governs the construction of the scope of the authority of a repository of a statutory power or function.
(1) The Committee is lawfully obliged to investigate and report once a matter is referred to it. The statutory language of referral connotes the formal handing over of a matter and fixes the jurisdiction of the Committee. The applicant relied by analogy on Independent Assessor v Councillor Conduct Tribunal (2020) 6 QR 163; [2020] QSC 316.
(2) The Committee is charged independently to inquire into and adjudicate the referred matters and, once its jurisdiction is enlivened, it is for the Committee to exercise its jurisdiction to decide the matter that has been referred and issue a report. That independent function is reinforced by what the applicant considers to be the limits placed on communication between the Committee and the Department. For example, s 135A of the NH Act provides that, except in the performance of duties or in the exercise of powers or functions under the Act, a person shall not divulge or communicate any information with respect to the affairs of a third person acquired in the performance of duties or exercise of functions. The applicant contends that that provision prevents the Secretary (or their appointed representative) from providing information to the Committee in the absence of a summons.
(3) While the referral itself is not adjudicative, what follows from the referral is. The Committee's inquiry and report operate as a precondition for an exercise of power by the Minister under s 95(1) to reprimand an approved pharmacist or to suspend or revoke a s 90 approval. Under s 134A of the NH Act, the Minister may publish in the Gazette particulars of or relating to any action that the Minister or the Secretary has taken under certain sections, inclusive of s 95. The particulars may include a statement of the reason for that action, which may take the form of, or include, a reference to, or an abstract from, any relevant Committee report. The Committee's report, inculpatory or exculpatory, is something capable of being made known to the world at large. Thus, the referral starts a process that potentially results in serious consequences for a person's rights and interests.
(4) The Committee's jurisdiction, once enlivened, is to be exercised judicially, because the Committee is vested with powers and functions akin to those of a commission of inquiry. The Committee has the sorts of powers that an adjudicative body would be expected to have. It holds meetings; issues summonses; inspects, retains and copies materials; and examines witnesses under oath or affirmation on pain of penalty: NH Act ss 126-129.
(5) A report which is a statutory precondition to the making of an ultimate decision is susceptible to judicial scrutiny and is properly characterised as more than advisory: relying on Ainsworth v Criminal Justice Commission [1992] HCA 10; (1992) 175 CLR 564 at 580 (Mason CJ, Dawson, Toohey and Gaudron JJ).
(6) The statutory scheme indicates in clear terms when the exercise of a power under the NH Act is intended to be revocable. In this respect, counsel for the applicant drew in aid the decision of a Full Court in Flaherty v Secretary, Department of Health and Ageing (2010) 184 FCR 564; [2010] FCAFC 67.
(7) Contrary to the Secretary's position, there is a clear purpose to be served by the Committee completing its function despite the Minister or Secretary deciding that they are no longer interested in the referred matters. The inquiry is a step in the disciplinary process under the Act. There is practical and legal utility in a party who has been referred being vindicated, and the outcome being reported to the Minister. An inquiry might be conducted for the purpose of inculpating or exculpating a person, and the person is entitled to an exculpatory report. Furthermore, there is a risk of a person being placed in jeopardy without a definitive end to matters.
(1) A referral to the Committee can be made in other circumstances; for example, for the purpose of informing a decision by the Secretary under s 98(3) to cancel a s 90 approval. In those circumstances, the Secretary might have regard to the report or might ignore it.
(2) Subsection 125(7) refers to matters referred to the Committee that concern a course of conduct of approved pharmacists generally or in a class of cases. The consequence is that the matter is deemed not to concern the conduct of an approved pharmacist and the written notice provision in s 125(1) is not enlivened.
(3) The power is so broad that the Minister or Secretary could use the Committee for purely information-gathering purposes relevant to Pt VII of the NH Act.
(1) The Secretary (or an appointed representative) is a member of the Committee.
(2) The other members are pharmacists who are appointed to serve at the Minister's pleasure (s 119) for their industry experience rather than their independence.
(3) The Minister and the Secretary are not precluded by s 135A from divulging information to the Committee except pursuant to a summons. The terms of s 125(2) recognise that the Committee may, before giving notice to the pharmacist, "meet and examine any written evidence or allegation referred to the Committee by the Minister or the Secretary in relation to the matter" (emphasis added). The provision of that evidence is then accommodated by the wording of s 135A, "except in the performance of duties, or in the exercise of powers or functions, under this Act".
(4) The publication of Committee reports under s 134A occurs in limited circumstances. It only arises where the Minister has taken action under the specified provisions, including s 95. Furthermore, contrary to what was contended by the applicant, there is no power to publish a referral.
(5) The mere referral of a matter, and consequent enlivening of the Committee's powers, says nothing about the revocability of the referral. It says nothing about the quality of finality or conclusiveness of the Committee's report or its impact on legal rights.
(6) The power of referral is, itself, implicit in s 114 which deals with the function of the Committee. There is no standalone referral power which is exercisable after some formality and which places limits on that power.
(7) If the Minister or Secretary decide that they no longer have any interest in the matter referred, want to prioritise other matters, or want to direct resources elsewhere, they must be able to call an end to the inquiry. The provisions that regulate the hearing (ss 125-129) count against the applicant because they demonstrate the resource commitment required for the Committee to operate, and those decisions about resource allocation must be for the Minister and Secretary.
(8) Once the advisory nature of the Committee's reporting function is understood, it follows that the power to refer carries with it the power to revoke the referral. No purpose or interest would be served by denying the possibility of revocation.
(9) The Court in Independent Assessor considered a legislative scheme far removed from the legislation in this case. The decision in Flaherty is also distinguishable because the Court there was considering the Secretary's power to cancel an approval: a decision that immediately affected the approved pharmacist's rights, was amenable to appeal and, thus, had the quality of finality or conclusiveness that spoke against an implied power to revoke.
The character and breadth of the referral power
(1) First, a referral is not limited to matters that might attract the powers in s 95(1) - they can be made broadly "in respect of or arising out of the services or conduct of approved pharmacists in connection with the supply of pharmaceutical benefits under Part VII".
(2) Secondly, even in relation to action taken under s 95(1), for which a report is a temporal precondition, it is not the report of the Committee that provides the statutory condition for action. It need not be taken into account under s 95(1)(a) and, under s 95(1)(b), it is the Minister's satisfaction that the pharmacist is guilty of the proscribed conduct in s 95(8) that enlivens the power of suspension or revocation.
(1) If the Committee produces a report (inculpatory or exculpatory) and the Minister or Secretary decides not to take action under the specified sections, then there can be no publication in the Gazette; and
(2) If the Committee produces a report (inculpatory or exculpatory) to assist the Minister or Secretary in the development of policy or in the exercise of a power other than under the specified sections, then there can be no publication in the Gazette.
That engaging the jurisdiction of a court or tribunal (or indeed a committee of inquiry) is to put a matter within its control and beyond the unilateral action of the moving party. That is the whole purpose of there being a body to whom a reference can be made, and who stands above the direction of either party. This is all the stronger where, as here, the matter involves more than simply deciding rights inter partes.
(1) First, the IA conducted an investigation following which an application could be made to the tribunal for a determination as to whether the alleged wrongdoer had engaged in misconduct or inappropriate conduct. Under the NH Act, the Minister or Secretary refers a matter to the Committee for an inquiry and report that is subsequently provided to the Minister or Secretary for the purpose of informing their decision‑making. Unlike the tribunal, the Committee's role is one of inquiry and report, not adjudication. Unlike the role of the IA, it is the Minister under s 95(1) who makes the legally operative decision that affects rights.
(2) Secondly, the matter referred to the Committee, and the Minister or Secretary's subsequent decision‑making, need not relate to action that might be taken under s 95. Even where the referral does relate to action that might be taken under s 95, the action is only taken upon the Minister's satisfaction of the matters in s 95(8), albeit having regard to the evidence before the Committee and the report.
(3) Thirdly, the Secretary does not become a party to an adjudication before the Committee in the way that the IA became a party before the tribunal. In fact, under s 113 the Secretary (or a suitably qualified officer of the Department) is a member of the Committee.
The report made and delivered by the Commission has, of itself, no legal effect and carries no legal consequences, whether direct or indirect. It is different when a report or recommendation operates as a precondition or as a bar to a course of action, or as a step in a process capable of altering rights, interests or liabilities. A report or a recommendation of that kind may be quashed, that is to say its legal effect may be nullified by certiorari.
(1) First, even if Brettingham-Moore, Testro Bros and Oakey Coal were to provide support for the proposition that a person whose interests are affected by a report of the Committee has a sufficient interest to seek declaratory relief against the Committee in circumstances where the report might lead to an exercise of power under s 95(1), that is not sufficient in my view to support the conclusion that the Committee's function is thereby more than advisory with the postulated consequences for which the applicant contends.
(2) Secondly, in any event, the judicial review remedies to protect any legal right or interest would only be available whilst the Committee is under a duty to provide a report because of an extant referral. Only then will the Committee have jurisdiction to undertake a function which might be characterised as a step in the process of affecting a right or interest, thereby being capable of attracting judicial review. The relevant question addressed in this proceeding is whether the Minister and Secretary are authorised to revoke a referral, thereby removing the Committee's duty to undertake the inquiry and provide the report. That is a question of construction that is not assisted by what was said in Ainsworth, Brettingham-Moore, Testro Bros or Oakey Coal about the availability of judicial review remedies. Any argument that the applicant has an ongoing legal right or interest to be vindicated once the referral is made assumes what is to be decided; that is, whether there is an implied power to revoke the referral.
(1) First, the establishment of the Committee is at the Minister's discretion: s 113(1).
(2) Secondly, the Secretary (or an officer of the Department appointed by the Secretary) is a member of the Committee: s 113(2).
(3) Thirdly, the other members of the Committee are appointed by the Minister (s 113(1)) and hold office during the Minister's pleasure (s 119(1)).
(4) Fourthly, the appointed members must be pharmacists (s 113(1)) and the Secretary's appointee must be a medical practitioner or pharmacist (s 113(2)). I agree with the Secretary's submission that the requisite qualifications suggest that those Committee members are appointed because of their expertise and skills.
The only power conferred by ... the Act is the power conferred on the Minister to make a declaration. A report is no more than a condition precedent to the exercise of the Minister's power to make a declaration. The function of a reporter ... is not performed by way of an independent review of an exercise of the Minister's power. It is performed as an integral part of the process of the Minister's exercise of power.
Secrecy provisions not indicative of independence
No contrary intention expressed as a consequence of other powers of revocation in the NH Act
(1) Where a decision‑maker has to be satisfied of certain conditions or take particular steps before or following revoking a decision, or if a revocation of a decision follows from the happening of an event or leads to particular consequences: see eg, ss 9B(8), 84AAC, 84AAG, 84AAK, 84AE(3A), 91A(9), 91B(12), 91B(13), 95(1)(b), 95(8), 98BD(2)(b), 99AAC(4)(b), 99AEI(1), 99AEK, 101(4AAA), 101(4AACC), 101(4AAF), 133(2) and 134.
(2) Where there is more than one decision that might be taken by the decision‑maker: see eg, s 94(5A) "vary, or suspend or revoke"; s 95(1)(b) "suspend or revoke"; ss 98B(4), 99ZS(3) and 100(2) "vary or revoke"; ss 99ADG(2) 99AEH(2), 99AEKE(2), 99AEL(2), 101(4AAA), 101(4AACB) and 101(4AAF) "revoke or vary".
(3) Where it identifies a remedy to be given on review of a decision: see eg, s 99ABD(5)(b) "confirm, vary or revoke".
(4) The reference in s 113(2) to the revocation of an appointment to the Committee is used to define the tenure of an appointed member, rather than identifying the power of revocation which is assumed to exist by implication.
It would be curious if the drafter of the [NH Act] thought it was necessary, notwithstanding the presence of s 33(3) of the [AIA], to confer an express power on the Minister but to leave a similar power on the part of the Secretary to be inferred by s 33(3). A sufficient contrary intention appears from the provisions to exclude the operation of s 33(3).
(1) The powers and procedure of the Committee in ss 126-129. The Committee is empowered to inquire and report when a matter is referred to it. Its powers and procedures equip it to do so. It is not thereby transformed into an adjudicative body with an irrevocable independent authority.
(2) The fact that the appointed members would be expected to undertake their role on the Committee judiciously and without bias. Those features of public decision‑making are basic tenets of public law and consequences of the conferral of public authority on the Committee.
(3) The fact that s 114 is expressed in the mandatory language of "shall inquire into and report". That is an obligation that exists for the duration of an extant referral.
I certify that the preceding eighty-one (81) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Stellios.
Pharmacy O2342 Pty Ltd
Secretary, Department of Health, Disability and Ageing [2025] FCA 1307
Ainsworth v Criminal Justice Commission [1992] HCA 10; (1992) 175 CLR 564
Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (2018) 262 CLR 157; [2018] HCA 3
Brettingham-Moore v St Leonards Corporation [1969] HCA 40; (1969) 121 CLR 509
Collector of Customs (NSW) v Brian Lawlor Automotive Pty Ltd [1979] FCA 21; (1979) 2 ALD 1
Firearm Distributors Pty Ltd v Carson [2001] 2 Qd R 26; [2000] QSC 159
Flaherty v Secretary, Department of Health and Ageing (2010) 184 FCR 564; [2010] FCAFC 67
Glaxosmithkline Australia Pty Ltd v Anderson (2003) 130 FCR 222; [2003] FCA 617
Independent Assessor v Councillor Conduct Tribunal (2020) 6 QR 163; [2020] QSC 316
Independent Liquor & Gaming Authority v 4 Boys (NSW) Pty Ltd (2023) 112 NSWLR 196; [2023] NSWCA 210
Minister for Indigenous Affairs v MJD Foundation Limited (2017) 250 FCR 31; [2017] FCAFC 37
Oakey Coal Action Alliance Inc v New Acland Coal Pty Ltd (2021) 272 CLR 33; [2021] HCA 2
Shelley v Board of Professional Engineers Queensland [2020] QSC 38
Testro Bros Pty Ltd v Tait [1963] HCA 29; (1963) 109 CLR 353
Wilson v Minister for Aboriginal and Torres Strait Islander Affairs (1996) 189 CLR 1; [1996] HCA 18
(2018) 262 CLR 157
(1996) 189 CLR 1
(2003) 130 FCR 222
(2023) 112 NSWLR 196
(2021) 272 CLR 33
(1963) 109 CLR 353
(1992) 175 CLR 564
(1969) 121 CLR 509
(2010) 184 FCR 564
(2017) 250 FCR 31