Ground 1: Invalidity of the cancellation decision under s 501(3A) of the Act
54 The applicant argued before the Minister's delegate and the Tribunal that the cancellation decision under s 501(3A) should be set aside, or that the power to revoke the cancellation decision under s 501CA(4) should be exercised in his favour, by reason of the reduction of his criminal sentence to less than 12 months.
55 Ground 1 in proceeding NSD 495 of 2021, as well as and in proceeding NSD 567 of 2021, asserts, relevantly, as follows:
1. The decision of the delegate of the first respondent dated 11 March 2020 to cancel the applicant s visa pursuant to section 501(3A) of the Migration Act 1958 (Cth) ("the Act") was of no effect as a statutory precondition necessary for the exercise of that power is not satisfied.
…
1.3 The applicant has not, within [the] meaning of section 501(3A), been sentenced to a period of imprisonment "of 12 months or more" within [the] meaning of section 501(3A), having had his sentence reduced on appeal to the County Court of Victoria to an aggregate term of 10 months' imprisonment on 11 June 2020.
56 The applicant submits that a statutory precondition necessary for the exercise of the power under s 501(3A) was not satisfied, in that the applicant has not been sentenced to a term of imprisonment of at least 12 months. It is submitted that the Minister's construction of s 501(3A) such that the cancellation decision remains valid even if the sentence is reduced to below the 12-month threshold produces harsh and unintended consequences. One consequence is that a person whose visa has been cancelled under s 501(3A) must satisfy the Minister under s 501CA(4) that a reason exists to revoke the cancellation. On the other hand, if cancellation were considered under s 501(2), natural justice would have to be provided and would require a positive exercise of the discretion to cancel. The Minister's construction is said to be contrary to the common law principle that upon the reversal of a conviction for any offence, the judgment becomes absolutely null and void. The applicant submits that s 501(3A) should be construed such that a mandatory visa cancellation is invalid if an appeal process results in reduction of the criminal sentence to below 12 months.
57 The Minister submits that there is no basis for construing s 501(3A) such that the Minister's decision is rendered invalid by a sentence being reduced to below the statutory threshold after the decision is made. The Minister submits that the jurisdictional fact which conditions the exercise of the mandatory cancellation power is the Minister's satisfaction that, relevantly, the person has been sentenced to a term of imprisonment of 12 months or more; not the objective fact that the person has been sentenced to such a term. The Minister submits that an assessment as to whether a state of satisfaction was formed lawfully must be conducted by reference to the material before the decision-maker and the circumstances as they existed at the time of the decision.
58 At this stage, it is worth setting out s 501(3A) again:
(3A) The Minister must cancel a visa that has been granted to a person if:
(a) the Minister is satisfied that the person does not pass the character test because of the operation of:
(i) paragraph (6)(a) (substantial criminal record), on the basis of paragraph (7)(a), (b) or (c); or
(ii) paragraph (6)(e) (sexually based offences involving a child); and
(b) the person is serving a sentence of imprisonment, on a full time basis in a custodial institution, for an offence against a law of the Commonwealth, a State or a Territory.
59 Section 501(3A)(a)(ii), dealing with sexually based offences involving a child, can largely be left aside for present purposes.
60 The substance of the applicant's argument is that, as a matter of construction, an exercise of power under s 501(3A) is affected by jurisdictional error where, objectively, a person no longer fails the character test by the operation of s 501(6)(a) (read with s 501(7)(c)), even though the person failed the test at the date of the decision to cancel the visa. That proposed construction is based upon the potential for harsh and seemingly anomalous consequences that may otherwise ensue. Such consequences are demonstrated in a case like the present, where the applicant may never have come to the attention of the Minister, and his visa may never have been cancelled if not for the error of the Magistrate, subsequently corrected on appeal, in sentencing the applicant to more than 12 months' imprisonment. Even if the applicant had correctly been sentenced to 10 months' imprisonment by the Magistrate but had still come to the Minister's attention, any potential cancellation would have been considered under s 501(2), and the applicant would have been afforded natural justice and the Minister would have had a discretion as to whether to cancel the visa. In contrast, the confined power under s 501CA(4) only allowed revocation of the cancellation decision if the Minister's delegate was satisfied that the applicant's representations demonstrated that he passed the character test or that there was "another reason" for revocation.
61 In Commissioner for Railways (New South Wales) v Cavanough (1935) 53 CLR 220 it was held that at common law, the effect of the reversal of a conviction by proceedings in error is that the conviction is avoided ab initio. Justices Rich, Dixon, Evatt and McTiernan observed at 225:
But "upon the reversal of a judgment against any person convicted of any offence, the judgment, execution and all former proceedings become thereby absolutely null and void. If living, he (or if dead, his heir or personal representative, as the case may be) will be entitled to be restored to all things which he may have lost by such erroneous judgment and proceedings, and shall stand in every respect as if he had never been charged with the offence in respect of which judgment was pronounced against him".
(Citations omitted.)
62 Similarly, in Rimanic and Anor v Business Licensing Authority (2002) 129 A Crim R 356; [2002] VSCA 64, Callaway JA (the other members of the Court agreeing) held at [10]:
… when the conviction was set aside by the County Court, the effect of the conviction was retrospectively undone. In the language approved by Rich, Dixon, Evatt and McTiernan, JJ, the appellants were entitled to be restored to their former position and to stand in every respect as if Mr Rimanic had never been charged with the offence of which he was convicted. To use the language of Starke J, the conviction was obliterated and was to be altogether held for nothing.
63 The general law position is no doubt based upon principles of justice. However, the application of the general law is subject to any statutory enactment to the contrary (and it was not suggested that the enactment of s 501(3A) was beyond the power of the Commonwealth).
64 The basis of the applicant's argument is that an exercise of power under s 501(3A) is invalid where, objectively, a sentence of imprisonment of 12 months or more existing at the date of the cancellation decision is subsequently reduced on appeal to less than 12 months. However, the jurisdictional fact in s 501(3A)(a) conditioning the exercise of the power to cancel is that the Minister is satisfied that the person does not pass the character test, not that the person objectively does not do so because of the operation of s 501(6)(a): see HZCP v Minister for Immigration and Border Protection (2019) 273 FCR 121 at [67] per McKerracher J. The time at which the Minister must achieve that state of satisfaction is the time at which the power is exercised.
65 In Parker v Minister for Immigration and Border Protection (2016) 247 FCR 500, the Minister decided to cancel the appellant's visa under s 501(2), based in part on a 2010 conviction and in part on a 2014 conviction. The appellant was later granted an annulment of the 2014 conviction. Section 501(10) of the Act provides, relevantly, that "[f]or the purposes of the character test, a sentence imposed on a person, or the conviction of a person for an offence, is to be disregarded if…the conviction concerned has been quashed or otherwise nullified".
66 In Parker, Griffiths and Perry JJ at [32]-[33] and [38] rejected a submission that the phrase "may cancel" in s 501(2) necessarily meant that, in the case of a decision not to exercise the power, the power can only be exercised on the one, single occasion and is then spent. More importantly for the present case, their Honours at [54]-[61] (distinguishing Cavanough) rejected a submission that cancellation of a visa, under a power conditioned on the satisfaction of the Minister that the person did not meet the character test, was affected by jurisdictional error because of the subsequent annulment of a conviction. Their Honours held at [61]:
In our view, the question on judicial review must be approached without regard to the subsequent fact that the 2014 conviction was annulled …
67 Justice Mortimer agreed with Griffiths and Perry JJ and added the following observations at [77]:
… The question for the Court is whether the exercise of power, at the time of its exercise, exceeded jurisdiction, or was an actual or constructive failure to exercise jurisdiction. Those matters may be proven by evidence that is adduced after the making of the impugned decision (for example, expert evidence, in some particular cases), but the relevant question is whether the exercise of power miscarried at the time of its exercise. In the current circumstances, with the 2014 conviction in effect at the time of the Minister's decision, that could not be the case.
68 It may be noted that the observations in Parker concerning when the Minister's state of satisfaction is to be judged for the purposes of s 501(2) of the Act are not affected by the judgment of the High Court in Minister for Immigration and Border Protection v Makasa [2021] HCA 1; (2021) 95 ALJR 117.
69 Section 501(3A) was directly addressed by Steward J in Plaintiff B65/2020 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2021] HCATrans 118. In that case, the plaintiff's conviction forming the basis of the decision to cancel his visa under s 501(3A) was subsequently quashed. It was contended, in reliance upon Cavanough, that the decision to cancel the plaintiff's visa was invalid because a precondition to the exercise of that cancellation power had never existed. His Honour observed at [37]-[41]:
37. Section 501(3A) of the Migration Act is mandatory in its terms. The Minister does not possess a discretion to decide not to exercise the power once she or he is satisfied that the necessary jurisdictional facts are present. The power is relevantly predicated upon a state of satisfaction about the existence of two facts. The first fact is that the person "has been sentenced to a term of imprisonment of 12 months or more". The use of the past tense here mandates the prior existence of such a sentence at the time the Minister must exercise the power conferred by s 501(3A) … As Middleton, Reeves and Anderson JJ said in Ketjan v Assistant Minister for Immigration and Border Protection (a case concerning s 501(3A)):
"[A]s evident from the text of the provisions, para (a) requires a 'positive state of satisfaction' on the part of the Minister (Falzon v Minister for Immigration and Border Protection [2018] HCA 2; (2018) 262 CLR 333 (Falzon) at [46] per Kiefel CJ, Bell, Keane and Edelman JJ) …"
38. In other words, when the power in s 501(3A) of the Migration Act is engaged, the Minister's state of satisfaction looks to the past ("has" the person "been sentenced" for the relevant period) … Neither fact is expressed to depend on the person's valid conviction of the crime that has led to her or his imprisonment. The Minister is not obliged to second-guess the past conviction or sentencing; nor is she or he required to confirm the validity of any ongoing imprisonment.
…
40. In judicial review proceedings, the issue before the Court concerns the legality of an exercise of power or the performance of a duty. The question to be posed is whether the decision maker has stayed within the limits of the decision-making authority conferred by an Act of Parliament. Events which take place after an exercise of power can play no part in assessing whether that decision contained an error (or errors) when it was made.
…
41. Here, the plaintiff candidly conceded that when the Minister decided to cancel his visa, that decision was, at that time, entirely valid. He did not dispute that, at that time, each of the matters upon which a lawful exercise of the power conferred by s 501(3A) of the Migration Act depended were then in existence. That being so, that is the end of the matter. The legal efficacy of a decision cannot be undone by events which did not exist when the decision was made.
(Citations omitted.)
70 In my opinion, the provision considered in Parker, s 501(2), is not relevantly distinguishable from s 501(3A) for the purposes of the present case. Further, the circumstances of Plaintiff B65/2020 are not relevantly distinguishable from those in the present case. The effect of those cases is that the Court's assessment of whether the state of satisfaction required under s 501(3A) was formed lawfully must be conducted by reference to the circumstances as they existed when the cancellation decision was made.
71 The language and context of s 501(3A) does not indicate that a decision by the Minister under s 501(3A) may be retrospectively vitiated by subsequent events. The Minister's obligation is to cancel a visa upon satisfaction that the holder: does not pass the character test because of s 501(6)(a) taken with s 501(7)(c) (substantial criminal record), or s 501(6)(e) (sexually based offences involving a child); and is serving a sentence of imprisonment, on a full-time basis in a custodial institution, for an offence against a relevant law. When that state of satisfaction is lawfully reached, the Minister's obligation to cancel the visa is absolute.
72 The legislative scheme recognises, in s 501(10), that an appeal or a pardon may affect the basis of a cancellation decision under s 501(3A), but does not require the Minister to await the determination of any appeal or any application for a pardon. The purpose of s 501(3A) creates an imperative of timing since the Minister must act while the person is still serving a sentence of imprisonment on a full-time basis in a custodial institution: cf. Parker at [59]. The broad purpose of the provision is protection of the Australian community against harm from criminal acts. The provision recognises a risk that persons who have committed criminal offences in Australia serious enough to attract a term of imprisonment of at least 12 months, or sexual offences involving a child, may offend again if released into the Australian community. In XJLR v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2021] FCA 619, Burley J observed at [69] that a legislative purpose of s 501(3A) is, "to establish a scheme whereby a person in custody who does not pass the character test will not be released from detention until that person is removed from Australia or their immigration status is otherwise resolved". Accordingly, the Minister is not required to await the outcome of any appeal or application for a pardon before cancelling a visa under s 501(3A).
73 Sections 501(3A) and 501CA must be considered together. Section 501CA(4) provides some amelioration of the harshness of mandatory cancellation under s 501(3A). If a person is successful in an appeal against a conviction or sentence, or an application for a pardon, the provision may operate to permit the Minister to revoke the cancellation decision. The Minister may be satisfied that a person passes the character test for the purposes of s 501CA(4)(b)(i) in consequence of a successful appeal that sets aside a conviction (see s 501(10)) or reduces a sentence of imprisonment to below the 12-month threshold; or in consequence of the grant of a pardon. The Minister may also be satisfied that such a reduction of sentence contributes to the establishment of "another reason" for revocation within s 501CA(4)(b)(ii).
74 The measure of protection provided under s 501CA(4) is far from absolute for a person in the applicant's position. The condition under s 501CA(4)(b)(i) is that the Minister is satisfied that, "the person passes the character test (as defined by section 501)". That draws in the full spectrum of the "character test" under s 501(6), and is broader than s 501(3A) which is confined to, first, s 501(6)(a) taken with s 501(7)(c) (substantial criminal record) and, second, s 501(6)(e) (sexually based offences involving a child): see XJLR at [61]. Accordingly, even though a person may no longer have a "substantial criminal record" by the time s 501CA(4) is considered, the Minister may nevertheless fail to be satisfied that the person passes the character test because of a different limb of s 501(6). Further, the Minister may fail to be satisfied that the reduction of the sentence, considered together with other relevant factors, sufficiently contributes to the establishment of "another reason" for revocation of the cancellation decision.
75 The construction of s 501(3A) contended for by the applicant is that a decision to cancel a visa under that provision is invalid if an appeal process results in the reduction of a sentence to below 12 months' imprisonment. However, such a construction is not warranted by the potential harshness of the consequences of a contrary construction. The clear language of ss 501(3A) and 501CA(4) and their purpose (preventing release of the person into the Australian community unless and until the cancellation decision is revoked) allow no room for that construction.
76 The reduction of the applicant's sentence on appeal does not have the consequence that, at the time that the power in s 501(3A) was exercised, the formation of the Minister's delegate's state of satisfaction was affected by jurisdictional error. Accordingly, Ground 1 must be rejected.