First question
27 The applicant's submission reasons as follows. The only power to reduce an AFP employee's classification to a lower pay point is contained in cl 67 of the AFP EA. The AFP EA only has legal significance because, and only to the extent, it has statutory force, which relies in particular, on s 51 of the FW Act (which provides that an enterprise agreement does not impose obligations on a person, and a person does not contravene a term of an enterprise agreement, unless the agreement applies to the person). However, s 69B of the AFP Act provides that the FW Act does not apply in certain circumstances, including in relation to "a matter covered by Pt V [of the AFP Act] or any action…taken in relation to a matter": s 69B(1)(b). As a result of s 51 and of the FW Act not applying to those matters specified in s 69B, cl 67 of the AFP EA "does not apply" in relation to those matters. Whether the AFP EA operates or applies, it is subject to the operation of s 69B and the limitations listed therein, and the AFP EA has no effect in relation to the matters listed in s 69B(1)(a) to (d). This is a matter covered by Pt V, and as the power to lower the pay point is only in cl 67, the Commissioner and delegate had no power to reduce the applicant's remuneration.
28 The applicant's submission therefore involves two critical constructional conclusions: first, that the reference to the FW Act in the chapeau in s 69B has the effect that it includes the AFP EA, such as to also limit the application of the AFP EA; and second, that the wording in s 69B(1)(b), "a matter covered by Pt V or any action…taken in relation to a matter covered by that Part" means all the "topics and subject matters" covered in Pt V of the AFP Act. While the applicant did postulate alternative interpretations of that latter phrase, namely that it means the whole topic of disciplinary action covered by Pt V; the taking of "appropriate action" under s 40TV; or that "a matter covered" includes a "matter" in the sense used in Ch III of the Constitution, and the punitive or remedial consequences of findings made about the employee's conduct are part of that matter, these alternatives were not referred to or developed in the oral submissions, and apart from the last point, were not developed in the written submission.
29 Given the applicant's reasoning, neither of those two constructional conclusions is sufficient by itself. Acceptance of both constructions is necessary for the answer to the first question to be "No", as sought by the applicant.
30 The respondents submitted, primarily for the reasons stated in O'Sullivan, that the answer to the first question is "Yes".
31 The construction contended for by the respondents should be accepted.
32 Statutory construction must begin with the text itself: Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) [2009] HCA 41; (2009) 239 CLR 27 (Alcan) at [47] per Hayne, Heydon, Crennan and Kiefel JJ. While the language employed is the surest guide, its meaning may require consideration of the context which includes the general purpose and policy of the provision: Alcan at [47] per Hayne, Heydon, Crennan and Kiefel JJ citing Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355 (Project Blue Sky) at [69] per McHugh, Gummow, Kirby and Hayne JJ; in particular the mischief it is seeking to remedy: Alcan at [47] per Hayne, Heydon, Crennan and Kiefel JJ. More recently it has been emphasised that the starting point for the ascertainment of the meaning of a statutory provision is the text of the statute whilst, at the same time, regard is to be had to its context and purpose: SZTAL v Minister for Immigration and Border Protection [2017] HCA 34; (2017) 262 CLR 362 at [14] per Kiefel CJ, Nettle and Gordon JJ, citing Project Blue Sky at [69]-[71] per McHugh, Gummow, Kirby and Hayne JJ cited by BMW Australia Ltd v Brewster; Westpac Banking Corporation v Lenthall [2019] HCA 45; (2019) 94 ALJR 51 at [48] per Kiefel CJ, Bell and Keane JJ.
33 The construction of s 69B contended for by the applicant is not borne out by the text of the provision considered in its proper context and given its purpose.
34 As a preliminary observation, the applicant's argument generally replicated that put, and rejected, in O'Sullivan. While asserting the decision in O'Sullivan was incorrect, the applicant did not attempt to illustrate that by reference to the reasoning contained therein, and the applicant's submissions in support of its construction were made without any real consideration of that reasoning. While it may be accepted that the applicant submitted that the construction of "a matter covered by Pt V or any action…taken in relation to a matter covered by that Part" in O'Sullivan was too narrow and paid insufficient regard to the text, context, purpose and history of s 69B, nonetheless, at the core of the submission was an assertion as to the construction of s 69B without any, or any proper, consideration of the provisions in Pt V, to which it relates. Rather, the interpretation advanced by the applicant in respect to both of the issues critical to its argument considers the words and phrases in isolation from their surrounding text, and the context in which they appear. That approach is inconsistent with the proper application of the principles of construction.
35 It is necessary to consider the text of s 69B in the context in which it appears.
36 The purpose of Pt V is set out in s 40RA, referred to above at [12]. As will be apparent from the summary of the provisions above, Pt V, inter alia, sets out in detail the powers of the AFP to investigate conduct and practice issues and the rights of the AFP employee subject to such investigation.
37 In relation to a conduct issue, relevantly for this case, if the investigator is satisfied that category 3 conduct has been established, the AFP Act provides that the investigator may recommend any one or more of the actions set out s 40TR, recited above at [18]. Significantly, s 40TR(1)(d) is "any other action that the Commissioner can take in relation to an AFP appointee". Once the recommendations are made, s 40TV, recited above at [20], requires the Commissioner to fully consider the recommendations and ensure appropriate action is taken.
38 The plain reading of s 40TR(1)(d) is that it contemplates action other than that which would fall within paragraphs (a)-(c). Although not addressed in her written submissions, during the course of the hearing, the applicant properly accepted that s 40TR(1)(d) was not limited to actions specified in the AFP Act, and that it can encompass an enterprise agreement. The applicant also accepted that the AFP Act is not a code. The concession that s 40TR(1)(d) can encompass an enterprise agreement was not made in O'Sullivan. To the contrary, the argument there advanced, and correctly rejected, was that s 40TR(1)(d) was confined to actions within the AFP Act, or at least, precluded a source of power other than as bestowed by Parliament: O'Sullivan at [41].
39 As a consequence of those concessions as to the scope of s 40TR(1)(d), the applicant submitted that while a recommendation could be made based on an enterprise agreement (here, wage reduction), and the Commissioner was required to give it full consideration, that recommendation could not be acted upon, because it would be inconsistent with s 69B. The applicant contended that s 40TR depended on the construction of s 69B, and that it was s 69B that "governed the outcome". That approach involves interpreting s 69B devoid of the context in which it appears and the provisions to which it relates.
40 The provisions in Pt V, properly construed, envisage actions taken by the Commissioner on satisfaction of category 3 conduct, which have their source of power elsewhere, including in an industrial instrument such as the AFP EA. That is the context in which s 69B is to be construed.
41 Turning to the construction of s 69B, and the two issues which are critical to the applicant's case, it is appropriate to recall that although addressed separately, there is overlap between the issues such that neither is considered in isolation from the other.