LINFOX AUSTRALIA PTY LTD Applicant Catchwords: Equal Opportunity Act 1984 (WA) - Race - Citizenship - Application for further exemption under s 135(2) of the EO Act from the operation of s 37, s 39 v s 49 of the EO Act for a term of 5 years - Applicant requires further exemption to meet contractual obligations - International Traffic in Arms Regulations - Defence Trade Controls Act 2012 (Cth) and
[2026] WASAT 1
WASAT
2026-01-02
cited 1×
Dr M Evans-bonner
Cited 1×
Treatment by later cases (1)
1 positive
Applicant: Linfox Australia Pty Ltd
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Concept tags · 2
Cases cited in this decision · 9
Cited
[2025] WASAT 54
— BAE SYSTEMS AUSTRALIA LIMITED First Applicant ASC SHIPBUILDING PTY LIMITED...
"…ond Pereira Affidavit; (e) September 2025 Letter; and (f) Original Exemption and the Further Exemption. Legislative framework I recently outlined the legislative framework concerning further 34 exemption applications...…"
Cited
[2007] WASCA 261
— Commissioner for Equal Opportunity v ADI Ltd, BC200710251
"…g an act performed pursuant to a Western Australian law that discriminates between Australian citizens and persons who are not Australian citizens. Page 10 [2026] WASAT 1 By way of illustration, in Commissioner for...…"
Doubted
[2024] WASAT 39
— ASC PTY LTD Applicant Catchwords: Anti-discrimination – Application under s...
"…the operation of that provision. As I mentioned above, Linfox has applied for a further exemption 50 under s 135(2) of the EO Act. The 2020 Exemption was granted for a 5-year term from 31 July 2020 with an expiry...…"
Applied
[2019] WASAT 79
(not in corpus)
"…. On the face of those provisions, there is nothing to suggest that different considerations apply to an application under s 135(2) as opposed to one under s 135(1). 19 I note that in BAE Systems Australia Ltd and...…"
Cited
[2012] WASAT 222
(not in corpus)
"…t under s 135(2) the Tribunal might more readily, and perhaps in a summary fashion, conclude that a further exemption should be given, for the same reasons as one had previously been given [Cf Thales Australia and...…"
Cited
(1982) 151 CLR 342
(not in corpus)
"…iscretion to grant an exemption. Firstly, a discretion that affects the rights of persons will not be 64 construed by the courts as 'absolute and unfettered' unless Parliament has used plain words to express that...…"
Cited
[1968] AC 997
(not in corpus)
"…t is nevertheless constrained. Secondly, the scope of the Tribunal's discretion is constrained by 65 the policy objectives, and the objects, scope and purpose of the EO Act (FAI at 368, per Mason J Padfield v...…"
Cited
[2004] FCA 875
(not in corpus)
"…by 65 the policy objectives, and the objects, scope and purpose of the EO Act (FAI at 368, per Mason J Padfield v Minister of Agriculture Fisheries & Food [1968] AC 997 at 1030; and Le v Minister for Immigration &...…"
Cited
[2007] VCAT 532
(not in corpus)
"…sidering whether to grant an exemption or a further exemption. With reference to the decision of Morris J, sitting as the President of the Victorian Civil & Administrative Tribunal in Boeing Australia Holdings Pty...…"
Subsequent treatment · 1
Positive treatment· 1
Applied
Archived text (13714 words)
[2026] WASAT 1
JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL
ACT : EQUAL OPPORTUNITY ACT 1984 (WA)
CITATION : LINFOX AUSTRALIA PTY LTD [2026] WASAT 1
MEMBER : DR M EVANS-BONNER, SENIOR MEMBER
HEARD : DETERMINED ON THE DOCUMENTS
DELIVERED : 2 JANUARY 2026
FILE NO/S : EOA 13 of 2025
BETWEEN : LINFOX AUSTRALIA PTY LTD
Applicant
Catchwords:
Equal Opportunity Act 1984 (WA) - Race - Citizenship - Application for further
exemption under s 135(2) of the EO Act from the operation of s 37, s 39 and s 49
of the EO Act for a term of 5 years - Applicant requires further exemption to meet
contractual obligations - International Traffic in Arms Regulations - Defence
Trade Controls Act 2012 (Cth) and Defence Trade Controls Regulations 2013
(Cth) - Whether further exemption from discrimination on the grounds of race in
areas related to employment warranted in the circumstances - Further exemption
granted for 3 years - no ability to grant an interim exemption under the EO Act -
Terms and conditions imposed on grant of further exemption
Legislation:
Defence Trade Controls Act 2012 (Cth), s 31(3), s 31(4)
Defence Trade Controls Regulations 2013 (Cth), reg 5
Electoral Act 1907 (WA), s 17
Equal Opportunity Act 1984 (WA), s 3, s 4, s 37, s 39, s 49, s 50, s 50(d), s 51,
s52, s 69, s 70, s 71, s 72, s 73, s 74, s 135, s 135(1), s 135(2), s 135(3), s135(6),
Page 1
[2026] WASAT 1
s 136(1), s 136(2), Pt VI, Pt IX
Equal Opportunity Regulations 1986 (WA), reg 24
Interpretation Act 1984 (WA), s5
State Administration Tribunal Act 2004 (WA), s 60(2)
Result:
Application for further exemption granted for 3 years with conditions
Category: B
Representation:
Counsel:
Applicant : N/A
Solicitors:
Applicant : Russell Kennedy Pty Ltd
Case(s) referred to in decision(s):
ASC Pty Ltd [2024] WASAT 39
BAE Systems Australia Limited [2025] WASAT 54
BAE Systems Australia Ltd and Commissioner for Equal Opportunity [2019]
WASAT 79
Boeing Australia Holdings Pty Ltd (Anti Discrimination Exemption)
[2007] VCAT 532
Commissioner for Equal Opportunity v ADI Limited [2007] WASCA 261
FAI Insurances Ltd v Winneke (1982) 151 CLR 342
Le v Minister for Immigration & Multicultural & Indigenous Affairs
[2004] FCA 875
Padfield v Minister of Agriculture Fisheries & Food [1968] AC 997
Thales Australia and Commissioner for Equal Opportunity [2012] WASAT 222
Page 2
[2026] WASAT 1
REASONS FOR DECISION OF THE TRIBUNAL:
Introduction
On 28 July 2025 the Applicant, Linfox Australia Pty Ltd (Linfox)
1
made an application to this Tribunal under s 135(2) of the
Equal Opportunity Act 1984 (WA) (EO Act) seeking an order granting
them a further exemption from the operation of s 37, s 39 and s 49 of the
EO Act (Application).
Section 37 and s 39 of the EO Act make it unlawful to refuse to
2
employ job applicants, employees, and contract workers or to prevent
otherwise qualified employees or contract workers from undertaking
certain work on the ground of their race, ethnic or national origin or
nationality.
Section 49 of the EO Act makes it unlawful to require job
3
applicants, employees, and contract workers to provide information
about their race, ethnic or national origin or nationality.
A person can seek an exemption from the operation of specified
4
provisions of the EOA, including s 37, s 39 and s 49, pursuant to s 135(1)
of the EO Act. If an exemption has been granted, a person can apply to
the Tribunal for a further exemption pursuant to s 135(2) of the EO Act
prior to the expiry of the previous exemption.
Exemptions were previously granted to Linfox by this Tribunal on
5
31 July 2015 for a period of 5 years (2015 Exemption)1 and on 5 August
2020 (2020 Exemption), also for a period of 5 years and on identical
terms to the 2015 Exemption.2
Linfox is a national company that, amongst other things, provides
6
warehousing and transport services. Linfox has contractual obligations
with the Commonwealth whereby Linfox and its personnel are required
to handle defence-related material, data, information and technology
(Defence Materials) used by the Australian Defence Force (ADF).
Linfox has a contract with the Commonwealth which requires
7
Linfox to comply with the laws of the United States of America (US)
including the International Traffic in Arms Regulations (ITAR) made
under the Arms Export Control Act (AEC Act). The contract also
1 EOA/17/2025.
2 EOA/13/2020.
Page 3
[2026] WASAT 1
requires Linfox to comply with Defence Trade Controls Act 2012 (Cth)
and Defence Trade Controls Regulation 2013 (Cth), to be a member of
the Commonwealth's Defence Industry Security Program (DISP) and to
comply with the Commonwealth Defence Security Principles
Framework (DSPF).
To comply, Linfox needs to undertake activities that may otherwise
8
contravene provisions of the EO Act with respect to 'race'.
The specific activities Linfox seeks to undertake that would be
9
covered by the further exemption are set out with more specificity in cl 1
of Annexure A. I will generally refer to them as the Proposed Exempted
Activities.
The Proposed Exempted Activities include being able to require
10
current or potential employees to provide details of their citizenship and
to be able to maintain records about citizenship.
Additionally, Linfox needs to be able to make decisions based on
11
citizenship information so as not to contravene its contractual obligations
with the Commonwealth. Those decisions include being able to reject
applications from potential employees for positions requiring access to
Defence Materials. They also include decisions preventing or restricting
the access of employees to Defence Materials or to areas of Linfox's
facilities connected to Defence Materials based on citizenship.
Linfox seeks a renewal of their 2020 Exemption under s 135(2) of
12
the EO Act so that it does not contravene the EO Act if it continues to
engage in these activities.
For the reasons set out below, I have decided to exercise discretion
13
to grant Linfox a further exemption from the operation of s 37, s 39 and
s 49 of the EO Act for a period of 3 years, subject to conditions, instead
of the 5-year term sought by Linfox.
In addition, Linfox initially sought an interim exemption pending
14
the determination of the further exemption. The EO Act does not provide
for interim exemptions, and accordingly an interim exemption was not
granted.
The orders, and my reasons for making them, are set out below.
15
The issues
The issues I must determine are:
16
Page 4
[2026] WASAT 1
(1) Whether I should exercise discretion to grant the further
exemption sought by Linfox.
(2) If I decide to exercise discretion to grant the further exemption,
whether it should be subject to any conditions or limitations and
the length of time it should be granted for.
Procedural overview
Together with its application for the further exemption filed on
17
28 July 2025, Linfox filed a document titled 'Application for Order'
which set out its grounds for making the application (Application) and
the text of the exemption sought (Original Exemption).
Linfox also filed an Affidavit of James Pereira, Defence National
18
Security Manager for Linfox affirmed on 28 July 2025, with attachments
comprising approximately 1,000 pages (First Pereira Affidavit).
The attachments to the First Pereira Affidavit include two other
19
affidavits that were before the Tribunal when the 2015 Exemption was
granted. Those were an affidavit of Andrew Raimon Collett, in-house
counsel for Linfox, affirmed on 25 May 2015 (Collett Affidavit), and an
affidavit of Lysa Davey, HR/IR Manager - Defence for Linfox, affirmed
on 1 June 2015 (Davey Affidavit). The First Pereira Affidavit confirms
that there are no material changes to the information provided in those
affidavits, except as otherwise set out in the First Pereira Affidavit.
Pursuant to reg 24 of the Equal Opportunity Regulations 1986
20
(WA), the Commissioner for Equal Opportunity (Commissioner) is a
party to an application unless the Commissioner lodges an affidavit with
the Tribunal setting out the reasons why the Commissioner does not wish
to be a party to the application.
On 4 August 2025, the Commissioner filed an affidavit confirming
21
that he did not support or oppose the Application and that he did not wish
to remain as a party to this proceeding (Commissioner's Affidavit).
On 29 August 2025 I made programming orders at a directions
22
hearing, including making an order that the Commissioner was no longer
a party to this proceeding.
I sought clarification as to several provisions in the text of the
23
exemption filed on 28 July 2025, and accordingly, made orders that
Linfox file in the Tribunal and provide to the Commissioner a revised
copy of the further exemption sought.
Page 5
[2026] WASAT 1
Section 135(3) provides that the Tribunal 'shall cause notice of
24
an application for an exemption, a further exemption, or the variation
of an exemption or further exemption to be given by newspaper
advertisement or otherwise, in such form and manner as the Tribunal
may direct'.
Accordingly, I made orders that Linfox place an advertisement in
25
the Public Notices section of The West Australian newspaper by no later
than 13 September 2025, so that if any person wished to be a party to the
Application, they should notify the Tribunal in writing.
I also made orders that:
26
(a) By 12 September 2025, Linfox must send a notice of the
Application to each of their Western Australian employees and
contractors and place the notice on its website up to and including
26 September 2025.
(b) By 30 September 2025, Linfox was to file with the Tribunal an
affidavit with annexures to confirm it had complied with the
advertising and notice requirements and to provide any further
submissions or comments it had received in response to the notice
of the Application.
(c) The matter be listed for another directions hearing on 10 October
2025 to consider further programming orders.
On 8 September 2025, Linfox filed a revised copy of the exemption
27
order sought (Further Exemption), together with an explanatory letter
(September 2025 Letter).
Linfox also filed an Affidavit of James Pereira affirmed on
28
30 September 2025 (Second Pereira Affidavit) to confirm that the
orders I made concerning the advertising and notice requirements had
been complied with.
In the Second Pereira Affidavit, Mr Pereira also affirmed that no
29
objections, nor any other correspondence, concerning the Application
had been received in response to the distribution of the notice.
The Tribunal did not receive any applications for interested persons
30
to be joined as parties and did not otherwise receive any submissions or
comments.
Page 6
[2026] WASAT 1
I am satisfied that persons who may have an interest in the
31
proceeding have had an opportunity to be joined, and to make
submissions or provide comments.
On 10 October 2025 I ordered that, subject to any other order the
32
matter is to be determined entirely on the documents pursuant to s 60(2)
of the State Administrative Tribunal Act 2004 (WA), and that the
decision was reserved.
In summary, the documents I have had regard to in deciding the
33
Application are the:
(a) Application;
(b) Commissioner's Affidavit;
(c) First Pereira Affidavit;
(d) Second Pereira Affidavit;
(e) September 2025 Letter; and
(f) Original Exemption and the Further Exemption.
Legislative framework
I recently outlined the legislative framework concerning further
34
exemption applications in BAE Systems Australia Limited [2025]
WASAT 54 (BAE Systems). I will now, for ease of reference, repeat
what I said in those reasons about the legislative framework.
Objects
The objects of the EO Act are set out in s 3, which provides:
35
The objects of this Act are -
(a) to eliminate, so far as is possible, discrimination against persons
on the ground of sex, marital status or pregnancy, family
responsibility or family status, sexual orientation, race, religious
or political conviction, impairment, age, publication of relevant
details on the Fines Enforcement Registrar's website or, in certain
cases, gender history in the areas of work, accommodation,
education, the provision of goods, facilities and services and the
activities of clubs; and
(b) to eliminate, so far as is possible, sexual harassment and racial
harassment in the workplace and in educational institutions and
Page 7
[2026] WASAT 1
sexual harassment and racial harassment related to
accommodation; and
(c) to promote recognition and acceptance within the community of
the equality of men and women; and
(d) to promote recognition and acceptance within the community of
the equality of persons of all races and of all persons regardless
of their sexual orientation, religious or political convictions or
their impairments or ages.
Unlawful discrimination on the ground of race
In this application, Linfox has applied for the Further Exemption
36
from the operation of s 37, s 39 and s 49 of the EO Act which concern
unlawful discrimination on the ground of 'race'.
'Race' is defined in s 4 of the EO Act to include national origin or
37
nationality and therefore citizenship. The definition of 'race' is as
follows:
race includes colour, descent, ethnic or national origin or nationality and
the fact that a race may comprise 2 or more distinct races does not prevent
it being a race for the purposes of this Act;
Section 37 of the EO Act makes it unlawful to discriminate against
38
job applicants and employees on the ground of race. The relevant parts
of s 37 of the EO Act provide:
(1) It is unlawful for an employer to discriminate against a person on
the ground of the race of that person -
(a) in the arrangements made for the purpose of determining
who should be offered employment; or
(b) in determining who should be offered employment; or
(c) in the terms or conditions on which employment is
offered.
(2) It is unlawful for an employer to discriminate against an employee
on the ground of the race of the employee -
(a) in the terms or conditions of employment that the
employer affords the employee; or
(b) by denying the employee access, or limiting the
employee's access, to opportunities for promotion,
transfer or training, or to any other benefits associated
with employment; or
Page 8
[2026] WASAT 1
(c) by dismissing the employee; or
(d) by subjecting the employee to any other detriment.
…
Section 39 makes it unlawful to discriminate against contract
39
workers on the ground of race. It provides:
It is unlawful for a principal to discriminate against a contract worker on
the ground of the contract worker's race -
(a) in the terms or conditions on which the principal allows the
contract worker to work; or
(b) by not allowing the contract worker access, or limiting the
contract worker's access, to any benefit associated with the work
in respect of which the contract with the employer is made; or
(c) by denying the contract worker access, or limiting the contract
worker's access, to any benefit associated with the work in respect
of which the contract with the employer is made; or
(d) by subjecting the contract worker to any other detriment.
Section 49 makes it unlawful to require a person to provide
40
information about their race. It provides:
Where, by virtue of a provision of Division 2 or this Division, it would
be unlawful in particular circumstances for a person to discriminate
against another person, on the ground of the other person's race, in doing
a particular act, it is unlawful for the first-mentioned person to request or
require the other person to provide, in connection with or for the purposes
of the doing of the act, information (whether by way of completing a
form or otherwise) that persons of a different race would not,
in circumstances that are the same or not materially different,
be requested or required to provide.
Specific exceptions
Despite the objects of the EO Act, the legislature included
41
exceptions in recognition that in some circumstances discrimination may
be justified. For example, s 50, s 51 and s 52 of the EO Act provide for
specific exceptions whereby conduct would not be unlawful
discrimination based on race.
Section 50, titled 'Genuine occupational qualifications' allows
42
discrimination in work or employment in circumstances including where
race is necessary for the performance of that work. It provides:
Page 9
[2026] WASAT 1
Nothing in this Part applies to or in respect of any work or employment
where that work or employment involves any one or more of the
following -
(a) participation in a dramatic performance or other entertainment in
a capacity for which a person of a particular race is required for
reasons of authenticity; or
(b) participation as an artist's or photographic model in the
production of a work of art, visual image or sequence of visual
images for which a person of a particular race is required for
reasons of authenticity; or
(c) working in a place where food or drink is, for payment or not,
provided to and consumed by persons in circumstances in which
a person of a particular race is required for reasons of authenticity;
or
(d) providing persons of a particular race with services for the
purpose of promoting their welfare where those services can most
effectively be provided by a person of the same race.
Section 50(d) of the EO Act provides for 'positive discrimination' to
43
promote the welfare or equality of persons of a particular race. So does
s 51 of the EO Act which is titled, 'Measures intended to achieve equality'
and provides:
Nothing in Division 2 or 3 renders it unlawful to do an act a purpose of
which is -
(a) to ensure that persons of a particular race have equal opportunities
with other persons in circumstances in relation to which provision
is made by this Act; or
(b) to afford persons of a particular race access to facilities, services
or opportunities to meet their special needs in relation to
employment, education, training or welfare, or any ancillary
benefits.'
Section 52 of the EO Act, titled 'Citizenship', provides an exception
44
where a public authority specified in Pt IX of the EO Act can
discriminate between Australian citizens and persons who are not
Australian citizens in accordance with a law of the State. It provides:
This Part does not apply to or in respect of any act of an authority to
which Part IX applies being an act performed pursuant to a
Western Australian law that discriminates between Australian citizens
and persons who are not Australian citizens.
Page 10
[2026] WASAT 1
By way of illustration, in Commissioner for Equal Opportunity v
45
ADI Limited [2007] WASCA 261 (ADI), Martin CJ, gave the example
of s 17 of the Electoral Act 1907 (WA) which provides that a person must
be an Australian citizen to be enrolled to vote in a state election, and
explained that, 'the legislature considers that important right should be
restricted to those who owe allegiance to this country by reason of their
citizenship': at [66].
General exceptions
There are also general exceptions in Pt VI of the EO Act.
46
The general exceptions are so expressed because they are applicable to
discrimination on any of the grounds in the EO Act. They include:
(a) acts done to comply with an order of the Tribunal or a court: s 69;
(b) acts that would allow charitable benefits to be conferred on a
class of person: s 70;
(c) the admission of persons as members of a voluntary body or the
provision of benefits, facilities or services to members of
the body: s 71;
(d) the acts or practices of religious bodies including the ordination
or appointment of persons as priests or ministers: s 72;
(e) the establishment of educational instructions for religious
purposes: s 73; and
(f) the provision of housing accommodation for aged persons: s 74.
Tribunal may grant an exemption or a further exemption
Section 135(1) of the EO Act provides that an application can be
47
made to grant a person an exemption from certain provisions.
It provides:
(1) The Tribunal may, on application by a person, by order, grant to
the person an exemption from the operation of a specified
provision of Part II, IIAA, IIA, IIB, III, IV, IVA, IVB or IVC.
A 'person' is defined in s 5 of the Interpretation Act 1984 (WA) to
48
include a company.
If a person has already been granted an exemption, they can apply
49
for a further exemption under s 135(2) of the EO Act which provides:
Page 11
[2026] WASAT 1
(2) The Tribunal may, on application by a person to whom an
exemption from a provision of Part II, IIAA, IIA, IIB, III, IV,
IVA, IVB or IVC has been granted under subsection (1), by order,
grant to the person a further exemption from the operation of that
provision.
As I mentioned above, Linfox has applied for a further exemption
50
under s 135(2) of the EO Act. The 2020 Exemption was granted for a
5-year term from 31 July 2020 with an expiry date of 30 July 2025.
In ASC Pty Ltd [2024] WASAT 39, President Pritchard observed,
51
with respect to the further exemption before the Tribunal in that case,
at [17]:
In his affidavit, the CEO observed that the previous exemption granted
to ASC had expired and that the Application may have to be treated as
an application for a new exemption. I do not agree. The most recent
exemption order expired on 14 March 2024. However, the Application
was made on 29 February 2024, at which time the exemption remained
in operation. In my view, at the time it brought the Application, ASC
was a person to whom an exemption from a provision of the Act had been
granted and was therefore entitled to apply under s135(2) for a further
exemption.
The Application seeking a further exemption in this case was filed
52
by Linfox on 28 July 2025, approximately two days before the
2020 Exemption expired, and so at the time of the Application the
2020 Exemption was still in operation (albeit for a period of two days).
Applying President Pritchard's observations, Linfox was therefore
entitled to apply for a further exemption under s 135(2) of the EO Act.
The proximity between the expiry of the exemption and the making
53
of the Application to the Tribunal explains Linfox's request for an interim
exemption. However, s 135 of the EO Act refers to exemptions and
further exemptions, and not to interim exemptions. Practically speaking,
there are advertising requirements in s 135(3) which must be met before
an exemption can be granted, as well as requirements for the Tribunal to
publish its decision and reasons for granting an exemption in s 136(1).
Those provisions make the grant of an interim exemption impractical
because, in deciding to exercise discretion to grant an interim or
short-term exemption, the Tribunal would have to go through the same
process of consideration as for a 'final' exemption which can be granted
for a term of up to 5 years. As such, I advised Linfox that it was not
possible to apply for an interim exemption at the first directions hearing.
Page 12
[2026] WASAT 1
The Tribunal's decision in an exemption application, or an
54
application for a grant of a further exemption, is one that must be
published in the interests of open justice. Section 136(1), which I
referred to in the preceding paragraph, provides that no later than one
month after it has made a s 135 decision, the Tribunal must publish the
decision and its reasons, including its findings of fact material to
the decision and a summary of the evidence on which those findings
were based. A failure to do so does not, however, affect the validity of
the decision: s 136(2) EO Act.
Section 137 of the EO Act describes that the effect of exemption
55
orders is that an act that would otherwise be unlawful under the relevant
Parts of the EO Act will not be unlawful. It provides:
Nothing in Parts II, IIAA, IIA, IIB, III, IV, IVA, IVB and IVC renders it
unlawful for a person who has been granted an exemption from a
provision of one of those Parts, or a person in the employment or under
the direction or control of a person who has been granted such an
exemption, to do an act in accordance with the provisions of the order by
which the exemption was granted.
The EO Act also provides for the duration and terms upon which an
56
exemption or a further exemption can be granted in s 135(6). It provides:
(6) An exemption or further exemption -
(a) may be granted subject to such terms and conditions as
are specified in the order; and
(b) may be varied either on the application of the person to
whom the exemption is granted or at the instance of the
Tribunal; and
(c) may be expressed to apply only in such circumstances,
or in relation to such activities, as are specified in the
order; and
(d) shall be granted for a period specified in the order not
exceeding 5 years.
The Scope of the Tribunal's discretion to grant an exemption
In ASC Pty Ltd, which concerned an application for a further
57
exemption under s 135(2) of the EO Act, President Pritchard stated,
at [18] - [20]:
18 It is unnecessary to decide for present purposes whether any
different criteria apply to an application for a further exemption
Page 13
[2026] WASAT 1
under s 135(2) of the EO Act, in contrast to an application for a
new exemption under s 135(1). On the face of those provisions,
there is nothing to suggest that different considerations apply to
an application under s 135(2) as opposed to one under s 135(1).
19 I note that in BAE Systems Australia Ltd and Commissioner for
Equal Opportunity [[2019] WASAT 79], the Tribunal appeared
to adopt the same approach to the application for a further
exemption under s 135(2), which was before it, as would have
been taken in respect of an application under s 135(1).
20 On the other hand, unless there had been a change in
circumstances, or some evidence of a failure by an applicant to
comply with the terms and conditions on which a previous
exemption had been granted, then it might be assumed that under
s 135(2) the Tribunal might more readily, and perhaps in a
summary fashion, conclude that a further exemption should be
given, for the same reasons as one had previously been given
[Cf Thales Australia and Commissioner for Equal Opportunity
[[2012] WASAT 222]. (Footnotes included in text.)
In summary, as President Pritchard observed, on the face of s 135(1)
58
and s 135(2) of the EO Act, there is nothing to suggest that the criteria
for an exemption and a further exemption are different.
That conclusion is further supported by s 135(6) of the EO Act,
59
which concerns the discretion of the Tribunal to grant an exemption
subject to terms and conditions, amongst other things. That subsection
refers to both an exemption and a further exemption which, as I observed
in BAE Systems, is indicative that similar considerations are likely to
apply to both types of applications.
As President Pritchard also observed, the Tribunal may be more
60
willing to grant a further exemption if an exemption was previously
granted and if there have been no changes in circumstances and/or no
failure to comply with the terms and conditions of a previous exemption.
As I also observed in BAE Systems, the grant of a further exemption
61
is not automatic or guaranteed. Section 135 of the EO Act gives the
Tribunal a broad discretion to consider whether to grant an exemption or
a further exemption, and so the Tribunal must actively turn its mind to
whether that discretion should be exercised. This requires a consideration
of any criteria relevant to the application in question, whether an
applicant has complied with the terms and conditions of a previous
exemption and whether there has been a change in circumstances by
which the exemption is no longer needed.
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I have previously outlined the legal principles relevant to the grant
62
of a further exemption in cases including BAE Systems, however I have
repeated them here for clarity.
In ADI, Martin CJ, with whom Wheeler JA and Pullin JA agreed,
63
outlined the 'clear and uncontroversial' general legal principles governing
the scope of the Tribunal's discretion to grant an exemption.
Firstly, a discretion that affects the rights of persons will not be
64
construed by the courts as 'absolute and unfettered' unless Parliament has
used plain words to express that intent (FAI Insurances Ltd v Winneke
(1982) 151 CLR 342 (FAI) at 368, per Mason J cited in ADI at [44]).
Thus, although the scope of the Tribunal's discretion in s 135 of the
EO Act is broad, it is nevertheless constrained.
Secondly, the scope of the Tribunal's discretion is constrained by
65
the policy objectives, and the objects, scope and purpose of the EO Act
(FAI at 368, per Mason J Padfield v Minister of Agriculture Fisheries
& Food [1968] AC 997 at 1030; and Le v Minister for Immigration &
Multicultural & Indigenous Affairs [2004] FCA 875 at [58] cited in
ADI at [44] - [46]; ADI at [47] - [48] per Martin CJ). In other words,
'it was the intention of the Parliament to confer upon the Tribunal
a discretion which was constrained only by the objects, scope and
purpose of the Act read as a whole' (ADI, at [44] - [47] per Martin CJ).
The 'objects, scope and purpose' of the EO Act and the discretion of
66
the Tribunal is 'to be ascertained from a construction of the Act as a
whole' (ADI, at [55]). As Martin CJ explained in ADI at [56], the EO Act
is structured to prohibit certain types of discriminatory conduct by
reference to specific grounds, and although there is significant overlap,
the ambit of the conduct prohibited under different grounds is not
identical. For example, the ambit of prohibitions on conduct that might
be discriminatory on the ground of sex is not identical to the ambit of
conduct prohibited because it is discriminatory on the ground of race.
Martin CJ explained, at [58] - [59]:
58 So, in summary, there are a range of prohibitions specified by
reference to the ground of discrimination, qualified by exceptions
which are specifically referrable only to discrimination on that
particular ground. There are also general exceptions which apply
irrespective of the ground of discrimination. If none of the
specific or general exceptions apply, the Tribunal is given a
general power of exemption, unconstrained by anything other
than the objects, scope and purpose of the Act and the temporal
limitation upon the operation of the exemption.
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59 In this context, the legislative object to be served by the conferral
of a general power of exemption upon the Tribunal is, I think,
clear. The Act does not prohibit all discriminatory conduct.
Rather, the ambit of the conduct prohibited depends upon the
ground of discrimination. Nor does the Act prohibit all conduct
of a particular kind because it is discriminatory on a particular
ground. Rather, the Act provides both specific and general
exceptions to its prohibitions. The legislature has thereby
recognised that in a number of circumstances, which it has
identified both specifically by reference to the particular ground
upon which the discrimination is practiced, and generally,
discriminatory conduct can be justified and should not be
prohibited. And against the likely contingency that the
Parliament has not been able to anticipate all the circumstances in
which discriminatory conduct might nevertheless be justifiable,
it has empowered the Tribunal to grant exemptions in particular
cases.
In summary, it is necessary to identify the scope of the conduct that
67
is prohibited concerning the specific ground for which the exemption (or
further exemption) is sought. I have endeavoured to do this by outlining
the provisions for which the further exemption has been sought, namely
s 37, s 39 and s 49, as well as the exceptions in s 50, s 51 and s 52 of the
EO Act.
Thirdly, the Tribunal will need to undertake a balancing exercise
68
when considering whether to grant an exemption or a further exemption.
With reference to the decision of Morris J, sitting as the President of the
Victorian Civil & Administrative Tribunal in Boeing Australia Holdings
Pty Ltd (Anti Discrimination Exemption) [2007] VCAT 532 (Boeing)
in ADI, at [74], Martin CJ described the balancing exercise as 'a process
whereby the Tribunal weighs the advantages, both public and private
which would flow from the grant of exemption, against the detriment
which flows from the discriminatory conduct'.
Fourth, the Tribunal is at risk of error if it constrains its discretion
69
'by reference to limited and particular questions, which are to be applied
to every case' because to do so exposes the Tribunal to the 'risk of
excluding from consideration matters which are relevant to the exercise
of the discretion because they fall within the objects, scope and purpose
of the Act, but not within the … questions enunciated by the Tribunal'
(ADI at [49] - [54]).
With that caveat in mind, I observe that in ASC Pty Ltd President
70
Pritchard summarised some of the considerations that the Tribunal had
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applied in similar cases where the applicants were subject to similar US
import and export control laws and regulations as Linfox.
In ASC Pty Ltd, President Pritchard observed, at [29] - [30]:
71
29 In the exercise of a similar discretion under equal opportunity
legislation applicable in other jurisdictions, a variety of
considerations may be taken into account, in determining whether
an exemption should be granted. These illustrate the variety of
considerations which the Tribunal may take into account, in
weighing up whether to grant an exemption under s 135 of the
EO Act. Those considerations have included:
• whether the exemption sought is necessary;
• whether the proposed exemption is reasonable and
necessary having regard to the reasons for which it is
sought;
• whether there are non-discriminatory ways of achieving
the purposes for which the exemption is sought;
• whether the proponent of the proposed exemption has
taken reasonable steps, or is able to take any reasonable
steps, to avoid or reduce the adverse effect of a particular
act or action before seeking the exemption;
• the public and private impacts of the grant of the
proposed exemption;
• whether the exemption is in the community interest; and
• whether any other persons or bodies other than the
applicants support the application.
30 In a case where an applicant seeks a further exemption,
after having been granted an exemption on an earlier occasion,
other factors may be relevant, such as:
• whether the applicant for the exemption has complied
with any terms and conditions on which the earlier
exemption was granted; and
• whether there has been any change in the circumstances
which now apply, as compared with those which applied
at the time of the earlier exemption and in which the
grant of the earlier exemption was considered warranted.
(Footnote omitted)
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I am satisfied that the considerations identified by Pritchard J in
72
ASC Pty Ltd are relevant for me to consider with respect to the
Application.
Overview of relevant defence-related laws
Pursuant to its contractual obligations and due to the nature of its
73
defence-related work, Linfox is subject to certain United States laws, as
well as Australian defence-related legislation.
With respect to the United States, the ITAR was made under s 2778
74
of the AEC Act.
The ITAR regulates the export and import of United States origin
75
defence material, services or technical data on the United States
Munitions List (ITAR-Controlled Materials). The ITAR prevents the
export or import of ITAR-Controlled Materials to certain 'proscribed
countries' that are considered to pose a threat to United States national
interests: s 120.1(a) and 126.1(a) of the ITAR.
Pursuant to s 127.1(a) of the ITAR, before ITAR-Controlled
76
Materials can be transferred from the United States Government or a
United States person to a non-United States person, the parties must enter
into an agreement, or a 'licence' to allow the transfer to proceed. Making
a transfer outside of this process is a breach of the ITAR and the
AEC Act.
The maximum penalty for such a breach is $1,217,078 USD and/or
77
imprisonment for up to 20 years: s 2778(c) AEC Act. In addition, such
breaches could result in a person being banned from dealing with
ITAR-Controlled Materials: s 127.7 ITAR and 2778(g)(4) AEC Act.
Before the Commonwealth can release ITAR-Controlled Materials
78
(for example, to a contractor such as Linfox), it must seek a 'Third Party
Re-Transfer Authorisation' (TPR) from the United States Department of
State: s 123.9(a) of the ITAR.
In addition to ITAR, an 'Australian Community Member' must
79
comply with requirements in the DTC Act and the DTC Regulations.
It is an offence under s 31(3) and (4) of the DTC Act to supply
80
defence goods or technology related to goods listed in the Defence Trade
Cooperation Munitions List to any person who is not an Australian
Community Member or a member of the United States Community.
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A breach of these sections may result in significant penalties including
imprisonment for 10 years and fines of up to $825,000.
Regulation 5 of the DTC Regulations provides that to be an
81
Australian Community Member, the person must be an Australian
citizen, unless that citizenship requirement has been waived by the
Commonwealth and United States Governments. They must also have a
current Australian security clearance.
A waiver of the citizenship requirement will only be granted in
82
exceptional circumstances, for example, where an activity requires
specialised skills or expertise and which no, or limited, Australian
citizens possess similar capability. Additionally, the individual must not
hold dual- or third-party nationality of a prescribed country listed in
s 126.1 of the ITAR: s 2.2.4 of the Department of Defence Australian
Community Manual.
Factual findings
I make the following factual findings based on the materials before
83
me, and particularly the First Pereira Affidavit, the Collett Affidavit and
the Davey Affidavit.
Linfox is an Australian privately owned logistics business with
84
operations across the Asia Pacific region.
Linfox is divided into business units that provide specialised supply
85
chain solutions. One of these business units is 'Government and Defence'
which provides warehousing, disposal, distribution, information
technology, logistics, and supply chain solutions and services to the
ADF.
The Government and Defence business unit of Linfox employs
86
609 people in Australia, including 46 staff in Western Australia.
Those figures do not include project staff who include drivers,
87
information technology and other support staff who are not attached
specifically to the Government and Defence business unit. There are
30 of these staff engaged nationally.
Of the 609 employees, approximately 280 of the employees require
88
a security clearance of Negative Vetting 1 or higher.
There are very few roles in the Government and Defence business
89
unit that do not require a security clearance. Those without a security
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clearance must sign in and sign out, and be escorted at all times, by
someone with a security clearance.
Linfox signed a contract with the Commonwealth of Australia
90
(Commonwealth) on 19 December 2013 (Contract).
Under the Contract, Linfox provides services to the ADF including
91
warehousing, disposal, distribution, information technology, logistics
and supply chain solutions and services to the ADF.
Linfox's contractual obligations to the Commonwealth do not
92
require Linfox to discriminate based on country of origin but the
employee or prospective employee must be an Australian Citizen.
The Contract has been extended several times. The current expiry
93
date is 1 April 2026. It is not expected that the Contract will continue
past this date.
The base value of the Contract in Western Australia is
94
approximately $6,700,000 per annum.
The work undertaken by Linfox in Western Australia is undertaken
95
at certain facilities owned by the Department of Defence. The work is
specific to those locations and cannot be relocated to any other state in
which Linfox operates.
Linfox sometimes tenders for other contracts to provide some of the
96
same services they provide under the Contract (Other Contracts) to the
ADF. For example, Linfox is 'close to signing' a contract with another
ADF contractor whereby they would be a sub-contracted to the ADF to
provide warehousing and distribution services. They are also the
preferred tenderer for another contract to provide transport services.
There is no evidence before the Tribunal of any current Other Contracts.
Under the Contract and Other Contracts that Linfox tenders for from
97
time to time, the services provided by Linfox to the ADF include
warehousing, disposal, distribution, information technology, logistics,
and supply chain solutions and services.
Under the Contract, Linfox and its personnel are required to handle
98
a wide range of material, data, information and technology used by the
ADF and/ or owned by the Commonwealth (Defence Material). These
include ITAR-Controlled Materials obtained by the Commonwealth
through the United States' foreign military sales program.
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Under the Contract Linfox and its personnel must comply with the
99
Conditions of Contract including terms that require Linfox to comply
with defence requirements and laws; the laws of the United States
including the AEC Act, the ITAR; and the requirements of any licence
or authorisation applying to Linfox and made under those laws.
The Conditions of Contract also include provisions to the effect that
100
Linfox must ensure all personnel performing services under the Contract
hold, at minimum, baseline security clearances. They also require Linfox
to refuse access to information and sites to personnel without the
appropriate security clearances and to withhold security classified
information or official information provided under the Contract to a third
party, including a representative of another country.
The Conditions of Contract also include terms that require Linfox
101
to maintain membership of the Defence Industry Security Program
(DISP).
They also require Linfox to ensure that its contractors obtain and
102
maintain membership, and to comply with the Commonwealth's Defence
Security Principles Framework (DSPF).
The Commonwealth is permitted to terminate the Contract if Linfox
103
fails to maintain its membership of the DISP: clause 28.4.2 of the
Contract.
To maintain DISP membership, Linfox must comply with the DSPF
104
which sets out the principles, policy, process and guidance to be adopted
by the ADF in making security decisions, which may be extended by
contract to apply to a contractor.
To maintain DISP membership, Linfox must also comply with the
105
Defence Security Manual (DSM). The DSM sets out the security policy,
processes and technical standards to be adopted for Australia's defence.
It requires Linfox to ensure that all persons accessing Defence Materials
have the appropriate security clearance.
Linfox must also comply with Australian Government and Defence
106
security legislation and policies, including achieving and maintaining the
standards required by the DSPF: DSPF Control 16.1, para 34(a).
As a DISP member, under the DSPF Linfox must ensure that
107
unauthorised access to official or classified information or materials does
not occur: DSPF Control 10.1, paras 8, 14; Control 16.1, para 61(e).
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The Other Contracts which Linfox tenders for from time to time
108
contain terms that are the same or substantially similar to the security
clearance and related requirements in the Contract and Conditions of
Contract.
Linfox was granted a Third-Party Re-transfer authorisation
109
(TPR authorisation) on 20 June 2014, which was amended on
24 June 2014, under which the Commonwealth was permitted to release
ITAR-Controlled Materials obtained by the Commonwealth through the
United States foreign military sales program (FMS-Acquired Material)
to Linfox.
The TPR authorisation provides that only Linfox employees who
110
are Australian citizens and have security clearances may access the
unclassified FMS-Acquired Material covered by the TPR authorisation.
Linfox was also granted membership of the 'Australian
111
Community', pursuant to the DTC Act on 18 August 2014, and therefore
must comply with the requirements set out in the DTC Act and the
DTC Regulations.
The Contract and Conditions of Contract also include terms that
112
require Linfox to comply with the DTC Act and the DTC Regulations.
Should the Further Exemption be granted?
Is the Further Exemption necessary and is it reasonable having regard to
the reasons for which it is sought?
I have combined the first two considerations stated by President
113
Pritchard in ASC Pty Ltd, because they overlap and are interrelated.
The Further Exemption is necessary so that Linfox can comply with
114
its various legal obligations under Contract, Other Contracts that it
tenders for from time to time, the ITAR and AEC Act including the
requirements of Linfox's TPR authorisation, the DTC Act and
DTC Regulations and the DSPF.
Under the Contract, and it is anticipated under any Other Contract,
115
Linfox and its personnel are required to handle material, data and
technology that are Defence Materials and therefore must comply with
security requirements arising under the Contract and Conditions of
Contract, DTC Act and DTC Regulations, the ITAR, membership of the
DISP and the DSM.
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To comply with these obligations, Linfox needs to be able to
116
undertake the Proposed Exempted Activities that would otherwise
constitute discrimination on the grounds of race.
More specifically, these include requesting information about
117
citizenship and retaining a register of information about citizenship from
current and potential members of their workforce to ensure that only
Australian Citizens with the requisite security clearances have access to
Defence Materials. Linfox may need to refuse access to Defence
Materials to persons in their workforce based on citizenship, or to restrict
access to those without the appropriate clearances and to report any
unauthorised disclosure or breach. This may involve restricting access
to areas of its facilities, rejecting applications for positions based on
citizenship, transferring members of the workforce to another part of
Linfox's business or as a last resort, terminating a person's employment
on the basis that it is not reasonable to transfer or redeploy them.
Without an exemption, if Linfox engages in these Proposed
118
Exempted Activities, they will contravene s 37, s 39 and s 49 the EO Act.
Conversely, if Linfox was not able to undertake these Proposed
119
Exempted Activities, they are likely to be in breach of their contractual
and legal obligations which could lead to termination of the Contract, as
well as attracting the significant penalties prescribed by the ITAR.
A breach of those legal requirements would also constitute a breach of
the DISP and the DSM which could result in Linfox losing membership
to the DISP. This would also permit the Commonwealth to terminate the
Contract.
Further, to comply with the terms of Linfox's current TPR
120
authorisation, Linfox may only release unclassified FMS-Acquired
Material covered by the authorisation to a person if they are an employee
who is an Australian citizen and who holds an Australian security
clearance. If Linfox were to release ITAR-Controlled Material to a
person who does not meet these criteria, it may be subject to the
significant penalties under the ITAR described above.
If the exemption is not granted, it would not be possible for Linfox
121
to relocate work from Western Australia to other Australian states and
territories that have equivalent exemptions in place because the work is
undertaken at facilities owned by the Department of Defence.
I agree that granting a further exemption under s 135(2) of the
122
EO Act is the only means by which Linfox can continue to fulfil its
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contractual obligations and comply with the ITAR and the DTC Act and
Regulations without engaging in prohibited discrimination.
This consideration weighs in favour of the Further Exemption being
123
appropriate and reasonable considering the reasons for which it is
necessary.
I observe that other considerations (discussed below), including
124
whether there are any non-discriminatory ways of achieving the purposes
for which the Further Exemption is sought, and the terms and conditions
of the Further Exemption, are also relevant to the question of whether it
is appropriate and reasonable considering the reasons for which it is
necessary.
Are there non-discriminatory ways of achieving the purposes for which the
Further Exemption is sought?
If Linfox does not request and retain information based on
125
citizenship to ensure there is no unauthorised access to Defence
Materials by its employees, Linfox would fail to comply with its
contractual and legal obligations, including with the DTC Act and
Regulations, as well as the ITAR. This may result in substantial
penalties, as well as the termination of the Contract and possibly Other
Contracts that may be on foot.
Further, there are no specific or general exceptions in the EO Act
126
that would assist Linfox, other than a further exemption being granted
under s 135.
For example, s 52 of the EO Act, which provides a specific
127
exception for citizenship, applies to an act performed pursuant to a
Western Australian law (my emphasis). Consequently, Linfox cannot
rely on s 52 with respect to the performance of its contractual obligations
with the Commonwealth, or the performance of its obligations under
the laws of the United States including the ITAR or laws of the
Commonwealth, because s 52 specifically refers to an act performed
pursuant to a Western Australian law.
It is also unlikely that Linfox could successfully apply for a waiver
128
with respect to the DTC Act and DTC Regulations. Specifically, Linfox's
personnel must be Australian Community Members which requires them
to be Australian Citizens unless that requirement is waived by the United
States and Australian Governments. As set out above, a waiver will only
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be granted in exceptional circumstances, such as where no Australian
Citizen has the skills or expertise for the role.
The First Pereira Affidavit states the belief that Linfox does not
129
currently have any roles under the Contract that require skills or expertise
that are not able to be supplied by an Australian citizen, and that
consequently, Linfox is not able to seek a waiver.
However, even if a waiver could be obtained, Linfox would still be
130
subject to equivalent obligations under its current TPR authorisation and
the ITAR and so a waiver will not remove the need for an exemption.
In summary, the purpose of the Further Exemption is not able to be
131
achieved through non-discriminatory ways, such as applying for a waiver
or relying on a specific or general exception in the EO Act. This weighs
in favour of the grant of the Further Exemption.
Is the Further Exemption in the public interest?
The Further Exemption is in the national interest, and therefore the
132
public interest, because the work that Linfox is undertaking is relevant to
Australia's defence capabilities.
With respect to ITAR-Controlled Material, I accept that it is also
133
beneficial to Australia's defence capabilities to have access to United
States military goods and technology. There is also a benefit to the
Commonwealth in ensuring its contractors comply with security
measures necessary to protect national security.
Further, Linfox employs 46 staff in the Government and Defence
134
unit of its Western Australian workforce, and the base value of the
Contract in Western Australia is approximately $6,700,000 per annum.
I am satisfied that this economic contribution to the Western Australian
economy and the employment of members of the Western Australian
community is in the public interest.
The public interest is also served by consistency and predictability
135
in the granting of exemptions in similar circumstances, including for
other companies involved in defence contracting, and who are subject to
the laws of the United States including the ITAR. The further exemption
granted in in BAE Systems contains similar terms to the Further
Exemption. However, the Further Exemption is narrower in scope than
the BAE Systems exemption which extends beyond citizenship to
include, amongst other things, country of birth. Nevertheless, the
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[2026] WASAT 1
narrower scope of the Further Exemption is a factor that favours the
Further Exemption being granted to Linfox.
Exemptions were previously granted to Linfox in New South Wales
136
and Victoria, but those exemptions have now expired. The Tribunal was
not provided with any information about current exemptions or further
exemptions in place in other Australian states.
On balance, I find that the public interest favours the grant of the
137
Further Exemption.
The public and private impacts of the grant of the proposed Further
Exemption
The public and private advantages which would flow from the grant
138
of the Further Exemption must be balanced against the detriment which
flows from the discriminatory conduct (Boeing, ADI).
Again, there is some overlap between this, and other considerations
139
including the public interest consideration, and whether the Further
Exemption is reasonable or necessary.
The grant of the Further Exemption will enable the Government and
140
Defence business unit of Linfox to continue to operate in Western
Australia without breaching the EO Act.
The impact of the exemption not being granted is that Linfox will
141
need to make a problematic choice. To avoid contravening their terms
of Contract, the ITAR, the TPR authorisation, and the DTC Act and
Regulations, Linfox will need to contravene the EO Act by requesting
and retaining information about citizenship, and making decisions about
employment based on that information. If they do not do so, Linfox faces
the risk of significant financial penalties for breaches, as well as
potentially the termination of the Contract and possibly any Other
Contracts that are on foot, if they are unable to ascertain the citizenship
of persons having access to Defence Materials. This may in turn, not
only have a detrimental economic impact on the business of Linfox in
Western Australia, but also the security of employment of the Western
Australian employees in the Government and Defence business unit of
Linfox.
Being asked to provide information about citizenship is likely to
142
cause little, if any detriment to individual employees and contractors.
However, the use of that information to exclude people who are not
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Australian citizens from particular roles, or from being employed in the
first place, may have serious consequences for an individual, including
financial and/or emotional consequences. This has the potential to create
two classes of employment whereby those who are not Australian
citizens may be treated differently to others: see Cobham, at [97].
The Collett Affidavit identifies that the main impact of an
143
exemption (in this instance, the Further Exemption) is that during the
period of the exemption Linfox may receive applications from
prospective employees who are not Australian citizens who would not be
engaged to perform services under the Contract. However, those persons
would be unlikely to obtain a security clearance which requires a
person to be an Australian citizen unless there are exceptional
circumstances (such as where no Australian citizen has the skills or
expertise for the role). Linfox does not currently have any roles under
the Contract that require skills or expertise that could not be supplied by
an Australian citizen. Thus, the outcome is the same regardless of
whether the individual is initially refused work under the Further
Exemption or because of failing to obtain a security clearance.
On balance, I am satisfied, and I find, that any detriment to
144
individuals in being asked about their citizenship or excluded from
certain work, is outweighed by the public and private advantages of
granting the Further Exemption. These include public interest
considerations such as Australia's national security and access to
Defence Materials from the United States and Western Australian
economic interests including the interests of the Linfox's current
employees.
As I also outline below, the conditions to the Further Exemption
145
will also assist in limiting the possibility of detriment to individuals,
including the creation of a separate class of employees or contractors.
Whether Linfox has and will continue to take any reasonable steps to avoid
or reduce the adverse effect of the discriminatory acts
The Collett Affidavit states that Linfox is committed to promoting
146
the objects of the EO Act.
Linfox has implemented a Workplace Behaviour and Diversity
147
Policy and requires all employees undergo training on equal opportunity
at an induction. There is follow up training every 12 months. Linfox
adapts the training depending on the team, including through online
modules and through operational training at toolbox meetings. Linfox
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[2026] WASAT 1
has also adapted the training for staff with lower levels of literacy.
Linfox also ensures that staff are up to date with their training by keeping
a register of the completion of training by staff.
The Davey Affidavit confirms that, at the time the 2020 Exemption
148
was granted, there were limited opportunities to re-deploy personnel
from the Government and Defence business unit who were unable to
obtain a security clearance due to their citizenship to other business units.
This meant that there was a possibility that a person's employment may
need to be terminated if their position required access to Defence
Materials and they were not an Australian Citizen.
However, the First Pereira Affidavit confirms that Linfox now has
149
other government contracts that are not defence-related and, although
limited, there is the potential to redeploy an employee within the
Government and Defence business unit, rather than to redeploy them to
another business unit. It confirms that if Linfox is granted the Further
Exemption, Linfox will take steps to ensure that redeployment within the
Government and Defence business unit occurs as a first option where it
is available. These developments will assist in reducing the adverse
impact of the Further Exemption on individuals because there is now a
likelihood that if re-deployment is necessary, the individual will be
redeployed in the same business unit, or if that is not possible, in another
business unit, rather than having their employment terminated.
Additionally, the conditions to the Further Exemption will also
150
assist in reducing the effect of any discriminatory acts by further limiting
the scope of the exemption. These conditions are discussed below.
Overall, this consideration weighs in favour of the grant of the
151
Further Exemption.
Whether any other persons or bodies other than Linfox support the
Application
In the Commissioner's affidavit filed on 4 August 2025,
152
the Commissioner stated his view that 'the application is not intended to
further the objects of the Act'.
The Commissioner further stated that he did not wish to remain as
153
a party to the proceeding and stated that he would leave it to the Tribunal
to determine whether the Further Exemption is necessary and should be
granted.
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As I outlined above, the Tribunal did not receive any submissions
154
from persons other than Linfox in support of, or in opposition to, the
Application for the Further Exemption. Nor did Linfox.
The lack of any objection being received, lends some weight to the
155
Further Exemption being granted.
Whether Linfox complied with any terms and conditions on which the
2020 Exemption was granted
The 2020 Exemption included an annual reporting requirement to
156
the Commissioner.
Linfox has submitted copies of its annual reports to the
157
Commissioner for the first four years of the 2020 Exemption. I am
therefore satisfied that Linfox complied with the reporting requirements
to the Commissioner.
Further, those reports show that Linfox did not reject any
158
applications from prospective employees to join its workforce despite
64 vacancies being advertised or offered. They state that no employees
were redeployed or retrenched, and that no complaints were made by
applicants for employment or members of the workforce affected by the
2020 Exemption. This information suggests that the Further Exemption
was responsibly managed by Linfox to limit its impact on individuals.
There is no evidence to suggest that Linfox did not comply with any
159
of the other conditions to the 2020 Exemption.
Linfox's compliance with the 2020 Exemption, including its
160
compliance with the reporting requirements to the Commissioner which
show the limited impact of the 2020 Exemption on individuals, lends
weight to the Further Exemption being granted.
Any change in the circumstances compared with those which applied at
the time of the earlier exemption
Linfox has made the Application for the Further Exemption on the
161
basis that the Contract, and any Other Contract they may enter into, will
require an exemption to be granted.
One change in circumstances since the 2020 Exemption was
162
granted is that although the Contract is still on foot, Linfox does not
expect the Contract will continue after 1 April 2026. They do, however,
expect that some of the services performed under the Contract will
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continue under any Other Contract they tender for from time to time,
which contain the same or similar terms and security requirements.
Although Linfox anticipates it is close to signing an Other Contract, there
is no evidence of any Other Contracts currently being on foot. These
factors are relevant to the term of the Further Exemption which I discuss
below.
As I mentioned above, the 2020 Exemption expired on 30 July
163
2025, and so there has been a period of some months when no exemption
has been in place. Linfox only applied to the Tribunal for the Further
Exemption two days before the expiry date, and sought an interim
exemption until the Tribunal was able to consider the Further Exemption.
As I outlined above, the EO Act does not contemplate an interim
164
exemption and only provides for a final exemption to be granted. This
ensures that all exemptions and further exemptions are properly
considered, and as such, it is the responsibility of applicants to bring their
application to the Tribunal in a timely manner.
I do not have any information as to how Linfox is managing its
165
operations in this interim period, but they will need to have done so in
such a manner as to avoid contravening the EO Act.
Overall, I am satisfied that the circumstances continue to require
166
the grant of a Further Exemption, however, a question remains as to the
appropriate length of the term.
Balancing the considerations
In summary, the Further Exemption is necessary for Linfox to
167
comply with its contractual obligations under the Contract and Linfox's
associated obligations under the ITAR, the DTC Act and the
DTC Regulations. Should Linfox secure any Other Contract, Linfox is
also likely to require the Further Exemption.
The Further Exemption is also reasonable and necessary because it
168
has only been sought to the extent necessary (with respect to citizenship)
and there are no specific or general exceptions that Linfox could rely
upon instead of seeking it.
There are no viable non-discriminatory ways of achieving the
169
purposes of the Further Exemption.
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The Further Exemption is in the public interest, and on balance, any
170
public or private detriment, is outweighed by the advantages of granting
it.
Through the imposition of conditions (discussed in further detail
171
below), Linfox has proposed reasonable steps to minimise the
detrimental impact of the Further Exemption on members and potential
members of its workforce, and to protect the privacy of the information
collected.
The Further Exemption is also narrower in scope than other
172
exemptions and further exemptions granted by this Tribunal because it is
limited to citizenship, and not to country of birth or prior citizenship.
The Commissioner offered no view as to whether the Further
173
Exemption should be granted and left it to the Tribunal to satisfy itself
as to whether the Further Exemption should be granted. No submissions
or objections from third parties concerning whether the Further
Exemption should be granted were received by Linfox or the Tribunal.
Overall, I am satisfied, and I find that these considerations support
174
the grant of the Further Exemption.
Should the Further Exemption be subject to conditions or limitations?
As mentioned above, the Further Exemption is limited to Linfox
175
being able to request, record and make decisions based on citizenship
only. It does not extend to country of origin or past citizenship. This
means that the activities covered by the Further Exemption are only with
respect to citizenship and do not extend to allow Linfox to discriminate
against persons born in another country, and/or with prior citizenship of
another country. That scope is in accordance with Linfox's contractual
and legal obligations to the Commonwealth. This limitation makes the
Further Exemption is narrower in scope than other exemptions, for
example, the further exemption in BAE Systems, that have been granted
by this Tribunal which extend to those areas.
By way of summary, the conditions to the Further Exemption
176
include that prior to undertaking any action permitted by the Further
Exemption, Linfox will provide all employees or prospective members
of the workforce with express notice in plain English that they may be
adversely affected by the exemption if they are not an Australian citizen
or hold dual citizenship, and information about how they can apply for
Australian Citizenship: paragraph 2(a). Providing persons with
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[2026] WASAT 1
information about applying for Australian Citizenship would mean that
they would not be adversely impacted if they choose to obtain Australian
Citizenship.
Paragraph 2(b) comprehensively sets out the steps Linfox will take
177
with a specific emphasis on the prevention of discrimination based on
race. These include to maintain comprehensive anti-discrimination
policies, establish dispute resolution and grievance procedures to
investigate and resolve discrimination complaints and grievances, to
implement training programs to ensure all members of the workforce
receive regular education and training in issues of discrimination, and to
take steps to fully inform the workforce of their rights under the EO Act.
Awareness of the exemption and its conditions in the Applicants'
employment policies will also help to ensure compliance with the
exemption and the effectiveness of the conditions.
A further requirement is that Linfox will notify the Tribunal if
178
the discriminatory aspects of the relevant security requirements under the
Conditions of Contract, TPR authorisation, ITAR and other agreements
and licences are substantially amended or repealed to the extent that the
exemption may be revoked or amended: paragraph 2(b)(vi).
Paragraphs 2(c) and 2(d) seek to limit the impact of the Further
179
Exemption on current members of the workforce. Paragraph 2(c)
requires Linfox to take reasonable steps to ensure employees adversely
affected do not suffer a reduction in wages, salary or opportunity for
advancement. Paragraph 2(d) provides that if Linfox relocates a member
of the workforce, they will take reasonable steps to explain the reason for
the transfer to the person, to avoid disclosing the reason for the transfer
to other staff who do not need to know the reason to perform their duties.
Paragraph 2(e) seeks to limit the impact of the Further Exemption
180
on prospective employees who would otherwise been acceptable for
employment with Linfox. If feasible to do so, Linfox will consider and
implement alternatives to rejection such as employment in other work
for Linfox or obtaining approvals under the security requirements.
These conditions will assist to minimise the impact of the
181
exemption on Linfox's employees and prospective employees.
The Further Exemption also seeks to protect the privacy of
182
individuals. For example, security badges will be coded so as not to
identify citizenship or the reasons for a person's access: paragraph 1(d).
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Access to information about citizenship is also restricted to limited
persons on a 'need-to-know' basis: paragraph 1(c).
The Further Exemption also includes a condition (paragraph 2(f))
183
which requires Linfox to annually report to the Commissioner for the
duration of the Further Exemption, including with respect to the steps
taken to implement the conditions of the Further Exemption including
education and training; details of the number of applicants employed
under the exemption; whether any employees were transferred to other
roles; whether any employees were redeployed or retrenched; and the
number of employment vacancies advertised or offered under the Further
Exemption. This condition will assist in ensuring monitoring,
accountability and compliance and will provide independent oversight
and promote public confidence in the EO Act, including the grant of
exemptions and further exemptions.
Paragraph 2(g) also requires Linfox to undertake this reporting in
184
its annual reporting cycle and risk management program. This condition
will also assist to ensure monitoring, accountability and compliance.
I am satisfied that these conditions are reasonable and will assist to
185
limit the operation of the Further Exemption to the extent that it is
necessary, as well as assisting to mitigate any adverse impacts of the
Further Exemption.
Term of the Further Exemption
As I have outlined above, the Contract is not expected to continue
186
beyond 1 April 2026, but Linfox expects some of the services provided
under that Contract will continue under Other Contracts which Linfox
tenders for from 'time to time'. It is on that basis that Linfox has applied
for the Further Exemption for the maximum period of 5 years.
Although a 5-year term is likely to be commercially expedient to
187
Linfox and may provide them with some certainty when they tender for
Other Contracts, there is minimal to no evidence as to the number,
existence and terms of any Other Contracts.
Whilst the First Pereira Affidavit states that Linfox is close to
188
signing an Other Contract with another ADF contractor whereby they
would be sub-contracted to the ADF to provide warehousing and
distribution services, there is no information before the Tribunal as to the
likely duration of that contract. Further, although Linfox is 'close to
signing' the contract, it is not confirmed as to whether that Other Contract
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[2026] WASAT 1
has been, or will be, signed and the likely timeframe. That potentially
leaves Linfox with a single Contract that does not extend past 1 April
2026 and the possibility of tendering for Other Contracts from time to
time as those opportunities arise.
Although the term of any Further Exemption is counter-balanced by
189
the condition requiring Linfox to report annually to the Commissioner
who will be able to monitor any changes in circumstances which may
mean that the exemption is no longer necessary, and the condition that
Linfox will advise the Tribunal of any change in circumstances which
result in the Further Exemption no longer being required, overall, I am
not satisfied that there is sufficient evidence to justify the Further
Exemption being granted for a 5-year term.
Taking these factors into account, I am of the view that a 3-year
190
term would be appropriate in the circumstances. Should the Further
Exemption be required beyond that term, another application can be
made to the Tribunal which includes updated information relevant to the
length of the term sought.
Conclusion
Having considered the objects, scope, and purpose of the EO Act,
191
and after weighing the considerations that are relevant to the grant of the
Further Exemption, I am satisfied that a further exemption with
conditions for a term of 3 years is appropriate and warranted in the
circumstances.
I will therefore exercise discretion to grant the Further Exemption
192
sought by Linfox for a term of 3 years.
Orders
I make the orders set out in Annexure A.
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Annexure A
The Tribunal orders:
1. Pursuant to section 135(2) of the Equal Opportunity Act 1984
(WA) (EO Act), Linfox is granted an exemption from
compliance with the provisions of sections 37, 39 and 49 of the
EO Act for a period of three (3) years insofar as those sections
relate to the 'race' (as defined in section 4 of the EO Act) of
applicants for employment, employees and contract workers to
the extent that they may:
(a) Require members or potential members of the Workforce
to declare their exact citizenship and provide details of
their citizenship (including any changes to their
citizenship) in order to enable Linfox to determine
whether they are permitted under the Security
Requirements to participate in the provision of the
Services or to have access to Defence Materials;
(b) Disclose information about the citizenship of members of
the Workforce to:
(i) the United States Department of State;
(ii) the Australian Department of Defence; or
(iii) any other organisation or government department
for which or on whose behalf or at whose request
Linfox undertakes work in respect of which
Linfox has (directly or indirectly) an obligation
not to transfer Defence Materials on the basis of
citizenship;
(c) Record and maintain a register (Register) of those
members of the Workforce that are permitted to access
Defence Materials or any facilities owned or controlled
by the Australian Defence Force, the United States
Government (including any military departments), or
Linfox or another contractor of the Australian Defence
Force or the United States Government (including any
military departments), or to be involved in the provision
of the Services due to citizenship. Access to the Register
and any information relating to the citizenship of
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[2026] WASAT 1
members or potential members of the Workforce shall be
restricted to human resources officers, information
technology staff and security personnel or their properly
appointed nominees on a 'need-to-know' basis;
(d) Require members of the Workforce to wear a pass or
badge confirming their right to access Defence Materials
or their level of access to any Defence Materials or their
right or the extent of their right to participate in the
provision of the Services. Such passes or badges may be
coded but not in such a way as to identify:
(i) the citizenship of the person (including dual
citizenship), as declared; or
(ii) the reasons for that person's level of access;
(e) Restrict access to Defence Materials connected with the
Services to particular members of the Workforce based
on their citizenship;
(f) Restrict access to areas of its facilities connected with the
provision of the Services to particular members of the
Workforce based on their citizenship;
(g) Require Linfox's suppliers, contractors, employees,
contract workers, agents and consultants to comply with
the Security Requirements, and to take all practicable
steps to assist Linfox in complying with the Security
Requirements;
(h) Reject applications from prospective members of the
Workforce for positions involving the provision of the
Services or requiring access to the Defence Materials,
based on the prospective Workforce member's
citizenship, and taking into account a person's citizenship
in determining who should be offered employment or
contract work requiring access to Defence Materials;
(i) Transfer members of the Workforce from the provision
of the Services to work in other parts of Linfox's business
on the basis that, due to their citizenship (including a
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[2026] WASAT 1
change to their citizenship), Linfox may not permit them
to participate in the provision of the Services;
(j) Terminate the employment or engagement of members of
the Workforce on the basis that:
(i) due to their citizenship (including a change to
their citizenship), Linfox may not permit them to
participate in the provision of the Services; and
(ii) it is not reasonable in all the circumstances to
redeploy or transfer the members of the
Workforce to another role within Linfox's
business, or within a business operated by one of
Linfox's associated entities.
(k) Advertise positions with Linfox which involve the
provision of the Services or access to the Defence
Materials as being open only to Australian citizens who
can obtain the necessary security clearances.
2. This exemption applies subject to the following conditions:
(a) Linfox will, prior to taking any action permitted by the
exemption, provide all employees and prospective
members of the Workforce with:
(i) express notice that they may be adversely affected
by this exemption if they are not an Australian
citizen or if they hold dual citizenship;
(ii) a reasonable explanation in plain English of the
nature of any adverse effects of such action to
them; and
(iii) information (at the time of recruitment in the case
of prospective members of the Workforce) about
how they can apply for Australian citizenship.
(b) Linfox will:
(i) maintain comprehensive anti-discrimination
policies governing all aspects of the work and
Workforce, including management, and with
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[2026] WASAT 1
particular regard to race discrimination,
vilification, harassment and victimisation;
(ii) establish concise and comprehensive dispute
resolution and grievance procedures to receive,
investigate and resolve discrimination complaints
and grievances and, in particular, those relating to
race discrimination, vilification, harassment and
victimisation;
(iii) implement training programs, including at
induction, to ensure that all members of Linfox's
Workforce, including management, are fully
informed of their rights and obligations under
such policies and procedures, particularly with
regard to issues of race discrimination,
vilification, harassment and victimisation;
(iv) ensure that all members of the Workforce,
including management, receive regular education
and training in issues of discrimination,
particularly race discrimination, vilification,
harassment and victimisation;
(v) take steps to fully inform the Workforce,
including management, of their rights under the
EO Act and, in particular (but not limited to) the
complaints procedure under that EO Act;
(vi) notify the Tribunal if the discriminatory aspects
of the relevant Security Requirements are
substantially amended, repealed or become
inoperative, in whole or in part, so that the
exemption may be revoked or amended.
(c) Linfox will take all reasonable steps to ensure that any
employees adversely affected by the exemption retain
employment with Linfox, and do not suffer a reduction in
wages, salary or opportunity for advancement.
(d) If Linfox, in order to enable it to comply with the Security
Requirements, moves a member of the Workforce from
one project to another, Linfox must take reasonable steps
both to explain to that person why the transfer has
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[2026] WASAT 1
occurred, and to avoid disclosing information about the
reasons for the transfer to other staff who become aware
of the transfer and do not need to know the reasons in
order to perform their duties.
(e) Where prospective employees adversely affected by the
exemption would otherwise have been acceptable to
Linfox as employees, Linfox will consider and, if
feasible, implement reasonable and practicable
alternatives to rejection, such as employment in other
work for Linfox (whether with Linfox or one of its
associated entities) or obtaining the necessary approvals
under the Security Requirements.
(f) Linfox must report in writing to the Commissioner twelve
months after the commencement of this exemption, and
every twelve months thereafter while the exemption is in
force detailing in respect of the period to which the report
relates, and in respect of the matters covered by this
exemption -
(i) the steps taken by Linfox to comply with the
EO Act and the terms and conditions of this
exemption, including training and education
given to its Workforce, compliance audits, and
any complaints made under the EO Act;
(ii) the number of applications to join its Workforce
rejected under the exemption and whether any
(and if so, how many) were subsequently
appointed to other roles;
(iii) the number of members of its Workforce
redeployed or retrenched in accordance with the
exemption, and any steps taken to minimise harm
or loss to those people arising from the
redeployment or retrenchment;
(iv) the number of Workforce vacancies advertised or
offered under the exemption.
(g) Linfox must include the reporting requirements set out at
paragraph 2(f) in its annual reporting cycle and risk
management program.
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Definitions
In this exemption order:
'Commissioner' means the Commissioner for Equal Opportunity.
'Conditions of Contract' means conditions of the 2013 contract between
Linfox and the Commonwealth of Australia for the provision of the
Services, including where that contract is extended, amended or
replaced.
'Defence Materials' means any materials or information in relation to
which access or use is regulated by the Security Requirements.
'Linfox' means Linfox Australia Pty Ltd.
'Security Requirements' means Linfox's security requirements under
and pursuant to:
(A) Conditions of Contract;
(B) Any other contract with the Commonwealth of Australia,
Australian Defence Force or United States Government
(including any military departments) to which Linfox is, or
during the term of the Exemption Order becomes, a direct
contractor or subcontractor, and which contain security clearance
and related requirements which are the same or substantially
similar to the Conditions of Contract. For the avoidance of doubt,
any security clearance or related requirement which is not the
same or substantially similar to the Conditions of Contract does
not fall within this definition of Security Requirements and is
therefore not covered by the exemption;
(C) Linfox's Third Party Re-Transfer authorisation;
(D) US Export Regulations;
(E) Manufacturing licence agreements;
(F) Technical assistance agreements;
(G) Proprietary information agreements; and
(H) Export licenses granted by the United States Department of
Commence and/or the United States State Department.
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[2026] WASAT 1
'Services' means the warehousing, disposal, distribution, information
technology, logistics, and supply chain solutions and services which
Linfox has been engaged to provide, either directly as a contractor or
indirectly as a subcontractor, to the Commonwealth of Australia, the
Australian Defence Force and/or the United States Government
(including any military departments), to which the Security
Requirements apply.
'Tribunal' means the State Administrative Tribunal.
'US Export Regulations' means the requirements of the International
Traffic in Arms Regulations (22 CFR (US) §§120-130) and the Export
Administration Regulations (15 CFR (US) §§730-774) or other
regulation to similar effect, as amended or replaced from time to time, so
far as they apply to Defence Materials used in Linfox's operations.
'Workforce' includes Linfox's employees, contractors and contract
workers who are engaged to participate in the provision of the Services
in Victoria and/or who have access to Defence Materials.
I certify that the preceding paragraph(s) comprise the reasons for decision of
the State Administrative Tribunal.
DR M EVANS-BONNER, SENIOR MEMBER
2 JANUARY 2026
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