That formulation of the test was approved in Waters by Dawson and Toohey JJ. at 395-6 (with whose reasons Mason C.J. and Gaudron J. agreed at 365), by Brennan J. at 378, and by Deane J. at 383. McHugh J. did not deal with the appropriate test, except to say at 410 that the word 'reasonable' should be given its ordinary meaning.
Application of this test in the present matter, according to s. 6(2) of the Act, required the Commission, first, to examine the reasons in favour of the condition, and secondly, to weigh those reasons against the nature and extent of the discriminatory effect of the condition. The conclusion of discrimination within s. 6(2) of the Act can be reached only where the Commission determines that, in all the circumstances, the difference of treatment between members without a family and members with a family is not reasonable. An examination of the Commission's reasons shows that, essentially, the Commission was of the view that the condition did discriminate between members of the Defence Force with a family and those without a family, and therefore, that it was unreasonable.
I accept the argument of counsel for the Commonwealth that the Commission's reasoning was based on the presumption that any difference of treatment between a member of the Australian Defence Force with a family and a member without a family was prima facie discriminatory, and therefore unreasonable, irrespective of any material differences in the needs and circumstances of each category of member.
Also, the Commission did place great weight upon the subjective preference of Mr Dopking for living off-base in assessing the nature, extent and effect of the alleged discriminating treatment. Now the views of Mr Dopking may be relevant in determining objectively the reasonableness of the alleged discriminatory conduct; but ultimately, the test must be an objective one, applied by the Commission after considering all the material facts.
In assessing the nature and extent of any difference in treatment between a member without a family and a member with a family, it is relevant to take into account the package of entitlements with which each category of member was provided. A member with a family was provided with a particular benefit, namely, HPSEA, in circumstances where it was not made available to a member without a family; on the other hand, a member with a family was not given the accommodation entitlements which were provided to a member without a family, and in particular was not entitled to receive any benefits if the member with a family owned a suitable home in the locality to which he or she had been posted.
It is important to remember that the condition with which this case is concerned is but one element in a carefully tuned package of rights, privileges and benefits available to members of the Defence Force. Care must be taken in considering whether to strike down one element of the package, as this may have ramifications for other elements. This is not to say that in the appropriate case an offending element should not be struck down. Of course, it should. But we must not lose sight of the fact that the whole of the relevant package must be considered when reviewing the legality, or otherwise, of a part.
The Australian Defence Force perceived that the needs, expectations and personal circumstances of the two categories of members of the Force (members with a family and members without a family) were materially different, so that it was appropriate to provide for them differently. The resulting differences in their accommodation entitlements were based on the perceived fundamental differences between the two categories of member: primarily, the need and the expectation of a member with a family that he or she should be able to live with his or her family in self-contained accommodation, as distinct from the absence of that need and expectation in the case of a member without a family. In any case, the Commonwealth did not require members without a family, including Mr Dopking, to live in barrack-style accommodation on-base. A member without a family could live on-base or off-base as he or she chose; but if the choice was in favour of the latter then HPSEA was not available. In that event, the member would not receive the benefit or the allowance covering a solicitor's costs and disbursements, an estate agent's commission, advertising costs, stamp duty, other government fees, and housing loan insurance. Mr Dopking was a member who chose to purchase a dwelling off-base, and there is no evidence to suggest that he was prevented or inhibited from doing so by reason of his inability to qualify for the HPSEA.
In my opinion, the Commission did not consider all the relevant circumstances of this case, in particular, the matters to which reference has just been made. Nor did it make findings about the nature, extent and effect of the alleged discriminatory treatment, an exercise which it was required to do in accordance with Styles and Waters.
Taking all these matters into account, in my view it was impermissible for the Commission to find that the condition the subject of the challenge in the present proceeding was unreasonable. It was not unreasonable for the Commonwealth to decide that, in circumstances where on-base accommodation was available to Mr Dopking as a member without a family, it would not, by granting him a further benefit in the form of HPSEA, subsidize the choice of lifestyle made by him and involving the purchase of a home of his own off-base, in preference to the package of entitlements comprised in the service accommodation on-base.
Views in the community will differ about whether people generally like or approve of the condition; but it is a quite different question to say that the condition is not reasonable having regard to the circumstances of the case.
In my opinion the Commission erred in reaching the conclusion which it did.
In conclusion, it is necessary to say something about the role played by the Commission in this proceeding before the Court.
The Commission appeared by its counsel and solicitor, and argued the case before us as an adversarial party. Mr Dopking did likewise. There can be no doubt that Mr Dopking was entitled to take the course which he did; but there is doubt about whether the Commission was entitled to pursue the course which it did.
In The Queen v Australian Broadcasting Tribunal; Ex parte Hardiman (1980) 144 CLR 13 the High Court (Gibbs, Stephen, Mason, Aickin and Wilson JJ.) made the following observations at 35-36 about the role adopted by the Australian Broadcasting Tribunal in that matter:
'There is one final matter. Mr Hughes was instructed by the Tribunal to take the unusual course of contesting the prosecutors' case for relief and this he did by presenting a substantive argument. In cases of this kind the usual course is for a tribunal to submit to such order as the court may make. The course which was adopted by the Tribunal in this Court is not one which we would wish to encourage. If a Tribunal becomes a protagonist in this Court there is the risk that by so doing it endangers the impartiality which it is expected to maintain in subsequent proceedings which take place if and when relief is granted. The presentation of a case in this Court by a tribunal should be regarded as exceptional and, where it occurs should, in general, be limited to submissions going to the powers and procedures of the Tribunal.'
In BTR PLC v Westinghouse Brake and Signal Company (Australia) Limited (1992) 34 FCR 246, Lockhart and Hill JJ. commented at 265 on the role adopted in that proceeding by the Australian Securities Commission:
'Counsel for the Commission, properly in our view, advanced arguments relating to this Court's jurisdiction and powers in cases of this kind, construction of certain sections of the Law and the powers of the Commission under sections of the Law with which this case is concerned. The Court expressed the view to counsel for the Commission that, where proceedings under the [Corporations] Law involve issues of a purely commercial nature and where the other parties are well able properly to adduce evidence and make submissions on all relevant facts to the court, the Commission should not assume the role of an active party and present substantive arguments with respect to those issues. The position is different where a commercial issue arises but is not fully or properly canvassed by the other parties. The position is also different where cases raise issues of national significance, questions of construction of the Law or the procedures the Commission should follow under the Law. Plainly the Commission has a vital role to play with respect to those questions.'
No issue arises in this case concerning the jurisdiction, powers or procedures of the Commission. The interpretation of s. 6(2) of the Act, and the application of that section, and of the Determination itself, is what this matter is about. Furthermore, Mr Dopking was represented by counsel and solicitors in the earlier case before the Court, as well as in the present case, although he appeared in person before the Commission on both occasions; so there is no reason to believe an issue, or issues, have not been fully or properly canvassed.
It is the case that the Commission's role in curial proceedings is recognized by s. 31(j) of the Human Rights and Equal Opportunity Commission Act 1986, which empowers the Commission, where it considers it appropriate to do so, with the leave of the Court hearing the proceeding and subject to any conditions imposed by the Court, to intervene in proceedings that involve discrimination issues. To similar effect is s. 48(1)(gb) of the Act. Here, quite apart from these statutory provisions, the Commission was joined as a respondent; so it appeared as of right. Accordingly, the statutory provisions have no direct application; but nevertheless, they shed some light on the extent of the role which the Parliament perceived as appropriate for the Commission. In my opinion, the adversarial role adopted by the Commission before the Court in the present matter is not one to be encouraged.
Counsel for the Commonwealth stated that, if successful, it did not seek an order for costs against Mr Dopking.
I would make the following orders: