Interpretation of Statutes

Constitutional model of the Separation of powers

The Australian legal system is based on the model of the separation of powers among the three branches of government:
1.       The legislature makes the laws
2.       The executive administers the laws
3.       The judiciary enforces the laws

This means there are checks and balance on authority. Each branch has its own responsibility and powers, and each can place limits on what the others can do. No one person or group can control all three branches of the government.
1.       The parliament, elected by the people, is the supreme law-maker.
2.       The executive administers the law passed by the parliament
3.       The laws made by the parliament are given effect by the courts, which interpret, apply and enforce those laws.

Statutory interpretation

Statutory interpretation is what a judge does when deciding the meaning of a statute. The judge decides questions of law.
Because the words in a statute may contain more than one meaning, “interpreting” statutes is an example of judge made law.

Rules for statutory interpretation

The courts apply one or more of the following approaches to the interpretation of the statutes:
1.       Literal approach
2.       Golden rule
3.       Mischief rule
4.       Purposive approach
5.       Contextual approach
6.       Use of extrinsic material for statutory interpretation
7.       Other rules of statutory interpretation

Literal approach

Under the literal approach, the court gives a literal interpretation to the words used in the statute.
1.       The words in the statutes must be precise and unambiguous
2.       The literal approach is in line with the separation of powers – the judge must give effect to the words the parliament has used in the statute, and must not apply their own personal ideas about justice or public policy.

Golden Rule

The golden rule follows the literal approach then qualifies it by letting the courts override the actual meaning of the words used in the statute if it would produce a result which the parliament would not have intend to have.
Case example: Re Sigsworth, Bedford and Bedford [1935] 1 Ch 89

Mischief Rule

Under the mischief rule, a judege can identify the problem which existed before the legislation was passed and interpret the legislation so as to advance the remedy set out in the legislation.

The mischief rule involves:
1.       Understanding the law before the legislation was passed
2.       Analyzing the problem which existed before the statutes was passed
3.       Applying the remedy of the legislation, and
4.       Understanding the policy behind the legislation

Purposive approach

Under the purposive approach, courts try to interpret the words in the legislation to give effect to the purpose of legislation. The purposive approach focuses on the remedial purpose. It does not authorize a judge to redraft the legislation to fit the assumed intention of parliament.

Contextual approach

Under the contextual approach, the meaning of words used in legislation cannot be worked out by taking a word in isolation and interpreting the word in a vacuum. The context rule is also called the noscitur a sociis rule. This is important rule if a word has many meanings because it can limit the word and stop the statute from being read too widely.
The context of the word is critical, because a word which is not defined in a statute usually gets its meaning from all the surrounding circumstances and text. A word should not be taken out of its context.

Use of extrinsic material

If there is ambiguity or doubt, legislation sometimes allow for extrinsic material to help with interpretation. External material can also help with the interpretation of contracts.
Section 15AB of the Acts Interpretation Act 1901 (Cth) sets out the threshold and other restriction on the using of extrinsic material.