Consideration of the merits of proposed grounds 2 and 3
52 Grounds 2 and 3 concern the AUSTRAC reports that are attached to the intra-Departmental email annexed to the affidavit of Ms Coole. The email is dated 29 March 2018, that is, before the decision of the delegate of the Minister to refuse the visas. In the email, one officer of the Department says to another, relevantly, that the email and the attached AUSTRAC reports should be marked as 'sensitive'. It asks that they be put on the applicant's 'paper file with a non-disclosable certificate', with the intention that the report be disclosed to 'the AAT [sic] but cannot be disclosed further'. The email instructs the recipient to 'attach a non-disclosure certificate to the file'. It says:
It is the view of Legal Opinions that this information could generally be provided to the AAT, however, further disclosure would be contrary to the public interest. Therefore, the information should be accompanied with a non-disclosure certificate under s438(1)(b) for non-fast track cases, or s473GB for fast track.
However the AUSTRAC reports were given to the IAA without any non-disclosure certificate or other notification.
53 These matters fall to be considered within the following statutory framework. If a decision is referred to the Authority as a fast track reviewable decision under Part 7AA, the Secretary of the Department must give to the Authority a range of material including 'any other material that is in the Secretary's possession or control and is considered by the Secretary (at the time the decision is referred to the Authority) to be relevant to the review': s 473CB(1)(c). Subject to provisions that permit the limited receipt of new information, the Authority must review the decision referred to it by considering the review material provided, that is, on the papers: s 473DB. Division 6 of Part 7AA imposes certain restrictions on the disclosure of some information in connection with the Authority's review of a decision. The Secretary must not give the Authority a document or information where the Minister has certified that disclosure would be contrary to the public interest on national security or Cabinet confidentiality grounds: s 473GA(1)(a) or (b). Section 473GB provides:
Immigration Assessment Authority's discretion in relation to disclosure of certain information etc.
(1) This section applies to a document or information if:
(a) the Minister has certified, under subsection (5), that the disclosure of any matter contained in the document, or the disclosure of the information, would be contrary to the public interest for any reason specified in the certificate (other than a reason set out in paragraph 473GA(1)(a) or (b)) that could form the basis for a claim by the Crown in right of the Commonwealth in a judicial proceeding that the matter contained in the document, or the information, should not be disclosed; or
(b) the document, the matter contained in the document, or the information was given to the Minister, or to an officer of the Department, in confidence.
(2) If, in compliance with a requirement of or under this Act, the Secretary gives to the Immigration Assessment Authority a document or information to which this section applies, the Secretary:
(a) must notify the Authority in writing that this section applies in relation to the document or information; and
(b) may give the Authority any written advice that the Secretary thinks relevant about the significance of the document or information.
(3) If the Immigration Assessment Authority is given a document or information and is notified that this section applies in relation to it, the Authority:
(a) may, for the purpose of the exercise of its powers in relation to a fast track reviewable decision in respect of a referred applicant, have regard to any matter contained in the document, or to the information; and
(b) may, if the Authority thinks it appropriate to do so having regard to any advice given by the Secretary under subsection (2), disclose any matter contained in the document, or the information, to the referred applicant.
(4) If the Immigration Assessment Authority discloses any matter to the referred applicant under subsection (3), the Authority must give a direction under section 473GD in relation to the information.
(5) The Minister may issue a written certificate for the purposes of subsection (1).
54 It appears to be common ground that purporting to act under s 473CB, the Secretary gave the Authority materials that included the AUSTRAC reports. By proposed ground 2, the applicant wishes to assert that the Authority's decision involved jurisdictional error because the email I have described shows that the records should have been accompanied by a written notification under s 473GB(2)(a) that s 473GB applied to the records, and they were not. Proposed ground 3 asserts that the Authority's decision was affected by a reasonable apprehension of bias because the AUSTRAC reports were prejudicial to the applicant. This appears to be a ground of review of the kind that found favour with a majority of the High Court in CNY17 v Minister for Immigration and Border Protection [2019] HCA 50; (2019) 268 CLR 76.
55 To assess the merits of proposed ground 2 in a rough and ready way I will assume the following matters:
(1) The AUSTRAC reports were given to the Department in confidence.
(2) Therefore s 473GB(1)(b) applied to the records. (The intra-departmental email demonstrates some confusion as to whether it is this sub-paragraph that applies or whether a certificate under s 473GB(1)(a) and s 473GB(5) was to be issued. There was an attempt by the applicant to argue that the Minister had in fact certified under s 473GB(5) that disclosure would be contrary to the public interest, but there is no evidence that the Minister ever gave a certificate of that kind. But in light of the assumption I have made, nothing turns on those matters.)
(3) Therefore the Secretary was required under s 473GB(2)(a) of the Migration Act to notify the Authority in writing that s 473GB applied to the AUSTRAC reports.
(4) The Secretary did not comply with that requirement.
(5) That was, without more, an unauthorised omission in breach of a limitation within the statutory procedures that condition the performance of the overarching duty of the Authority to conduct a review, and thus a breach of an inviolable limitation governing the conduct of the Authority's review: cf. Minister for Immigration and Border Protection v SZMTA [2019] HCA 3; (2019) 264 CLR 421 at [44]-[45].
Each of these assumptions is favourable to the applicant.
56 Section 473GB, pertaining to the Authority, is similar in its wording, structure and requirements to s 438, pertaining to the Administrative Appeals Tribunal, which was at the centre of the issues considered by the High Court in SZMTA. On the above assumptions this case, like SZMTA, therefore comes down to whether the error made by the Secretary was material to the outcome of the Authority's review, in the sense that it could realistically have resulted in a different decision: SZMTA at [45]. But unlike SZMTA (the appeal by that respondent, being one of three determined by the High Court in the reported case of that name), the alleged error here is not giving a notification when there should have been one, rather than giving a notification or certificate when there was no basis to do so. The applicant here accepts that the other kind of error considered in SZMTA, a denial of procedural fairness, does not arise in relation to the Authority in the present circumstances. So the analysis of materiality here will not necessarily be the same as in SZMTA. The Court must consider the effect of the anterior breach of s 473GB on the Authority's decision-making process and the manner in which the information is dealt with in that process: see CED16 v Minister for Immigration and Border Protection [2018] FCA 1451; (2018) 265 FCR 115 at [24] (Derrington J); EMJ17 v Minister for Immigration and Border Protection [2018] FCA 1462 at [41(5)] (Thawley J).
57 How could the giving of a notification in relation to the AUSTRAC reports have realistically led to a different decision here? The applicant's written submissions said that, since the AUSTRAC reports were given by the Secretary to the Authority pursuant to his obligation under s 473CB(1)(c) to give material considered by the Secretary to be relevant to the review, it can be presumed that the Authority had regard to the reports. The applicant acknowledged, however, that the Authority does not make reference to the reports in its statement of reasons. But, the applicant submitted, a notification under s 473GB(2)(a) would have drawn the attention of the Authority to the inclusion of the AUSTRAC reports in the material provided to the Authority. It is true that the applicant submits that the content of the records were prejudicial to him. Nevertheless, according to him, if the notification had led the Authority to focus on the AUSTRAC reports and consider their content, it would have also had to consider whether to reveal them to the applicant. And if that had occurred, the applicant submits, then he would have had an opportunity to explain the prejudicial material and to remove it from real consideration by the Authority.
58 Before giving consideration to those submissions, it is convenient to set out what the AUSTRAC reports show. With one possible exception, they are unremarkable. They document some thirteen transfers of money from the applicant to his sister in Vietnam. The transfers took place between October 2015 and November 2017. The amounts of money involved were modest - mostly in the low hundreds of dollars, with five transfers of $1,000 or more, with the highest amount being $2,432. It is impossible to see how the transfer by the applicant of modest amounts of money over the course of some two years to a relative in his country of origin could be prejudicial to him or to his visa application. The possible exception is that there is one record of a deposit of over $12,000 in cash at a Commonwealth Bank ATM. One wonders how the applicant came to have cash in that amount. But to ascribe some illicit quality to it would be pure speculation. And it would be speculation that plainly would have had no relevance to the question of whether the applicant was a person to whom Australia owed protection obligations.
59 Against that background, proposed ground 2 appears to have little merit. First, it does not follow that a notification under s 473GB(2) of the Migration Act would have drawn the Authority's attention to the reports in a way that would have resulted in disclosure to the applicant. In SZMTA at [47], Bell, Gageler and Keane JJ held that the drawing of inferences about such matters could be assisted by reference to what can be expected to occur in the course of the regular administration of the Migration Act. In that context, their Honours described the comparable process in the Tribunal if a notice were given under s 438 as being that 'the Tribunal can then be expected in the ordinary course to leave that document or information out of account in reaching its decision in the absence of the Tribunal giving active consideration to an exercise of discretion under s 438(3)'. There is no obligation on the part of the Authority to disclose the fact of notification under s 473GB(2)(a) to a referred applicant in a review under Part 7AA: BVD17 v Minister for Immigration and Border Protection [2019] HCA 34; (2019) 268 CLR 29 at [2], [29]-[31], [35]. So it is at least equally likely here that the giving of the notice would have led the Authority to disregard the AUSTRAC reports, rather than actively consider the exercise of one or both of the discretions. It must be acknowledged, however, that the question here must be framed in terms of what realistically could have happened, not the balance of probabilities.
60 Second, if the AUSTRAC reports really were prejudicial, it is hard to see how the giving of a s 473GB(2) notification could have led to a different decision. On the face of things, drawing the Authority's attention to prejudicial material could hardly have been a good thing, from the applicant's point of view. To conclude that it could have been, it is necessary to find that the Authority did in fact have regard to the reports. Only then could the applicant's hypothetical opportunity to explain the reports, resulting from a s 473GB(2)(b) notification, have possibly improved his position.
61 There are two aspects to that inquiry: what the Authority can be expected to have done in view of the statutory scheme, and what it can be inferred it in fact did, in view of its reasons for decision and the nature of the AUSTRAC reports. They are of course related, as the first aspect bears on the second: SZMTA at [47]. As to the first aspect, the statutory scheme did require the Authority to consider the records once the Secretary had provided them: s 473DB(1) and see CNY17 at [98], [100] (Nettle and Gordon JJ), [140] (Edelman J). But the Authority, as a professional decision-maker in a specialised area, can be expected to make its own assessment of relevance and weight: CNY17 at [140]. That could include placing no reliance at all on the material: CNY17 at [7] (Kiefel CJ and Gageler J, in dissent but not on this point). There is therefore no statutory presumption that the Authority did give any weight to them.
62 The second aspect is the factual inquiry as to whether, in light of that, the Authority did find the AUSTRAC reports to be relevant and did put weight on them. In any application for judicial review on this basis, the onus would be on the applicant to establish that basal fact on the balance of probabilities: MZAPC v Minister for Immigration and Border Protection [2021] HCA 17 at [38]-[39]. In a context where it was for the Authority to decide what relevance and weight to put on the reports, it is unlikely that the Authority did give them any weight. While the Authority said at the beginning of its decision that it had had regard to the material provided by the Secretary, there is no mention of the reports in its reasons and given their largely unremarkable nature and obvious irrelevance, it is unlikely that the Authority did consider them to be relevant. I have noted the primary judge's finding that the AUSTRAC reports were not a reason for, or part of the reason for, the Authority affirming the decision under review. The applicant has not proposed to challenge that finding of fact and has not indicated why it is wrong.
63 Finally, for reasons I have already described, I do not consider that the AUSTRAC reports were prejudicial to the applicant. They were both mostly unremarkable and clearly irrelevant. Whether the Authority had regard to them or not, and whether a notification under s 473GB(2) may have focussed attention on them or not, they could not realistically have made any difference to the Authority's decision.
64 It follows from this that ground 3 also has little apparent merit. As I have said, it asserts apprehended bias, as was found to have arisen in CNY17. In MBJY at [33] O'Callaghan and Colvin JJ (Allsop CJ agreeing) summarised the test for apprehended bias as follows:
Subject to questions of waiver and necessity, a decision-maker who must act independently and impartially will not be qualified to make a decision of that character 'if a fair-minded lay observer might reasonably apprehend that the [decision-maker] might not bring an impartial mind to the resolution of the question the [decision-maker] is required to decide': Ebner v Offıcial Trustee in Bankruptcy (2000) 205 CLR 337 at [4]-[7]. Despite the 'double might' aspect of the test, a finding of apprehended bias is not to be reached lightly: Re JRL; Ex parte CJL (1986) 161 CLR 342 at 371. The test requires the adoption of the perspective of a fair-minded lay observer who, though not a lawyer, is taken to know both the nature of the decision-maker and the nature of the process that the decision-maker is required to undertake.
65 As CNY17 shows, apprehended bias may arise when a decision-maker is exposed to irrelevant but prejudicial information. The information may be of such a nature that the fair minded lay observer would reasonably apprehend that it might subconsciously influence even a professional decision-maker. In MBJY at [51]-[52] O'Callaghan and Colvin JJ said:
… Whether such material gives rise to apprehended bias will depend upon whether, having regard to the particular context, the material is of a kind that it may affect the decision-maker, including in a subconscious way.
Obviously enough, it is not sufficient to demonstrate that there was prejudicial but inadmissible material before the decision-maker. What must be shown is that, having regard to the context, and adopting the hypothetical informed lay observer perspective such a person might conclude that the material might lead to the decision-maker being influenced by that material.
66 For reasons I have already given, I consider that the AUSTRAC reports were largely innocuous. The only transaction that might have raised questions, the cash deposit, was unlikely to go further than that. That is, even the possibility of questions as to where that money came from is unlikely to lead the fair minded observer to reasonably apprehend that it might lead the Authority, a professional decision-maker, not to approach the review of the applicant's claims to protection with an open mind.
67 Each case depends on its own facts and it is not possible to identify in the abstract the particular point at which prejudicial information will lead to apprehended bias: CNY17 at [101]. But the information in CNY17 was much more prejudicial than the content of the AUSTRAC reports here. In CNY17, the information that the majority held gave rise to apprehended bias included information that the appellant had a history of aggressive and/or challenging behaviour when engaging with the Department, had been involved in many incidents while in detention, had been recommended for detention in a correctional facility while there was a police investigation into a riot, and was the subject of ongoing investigations: CNY17 at [81]. It contained 'expressions of opinion, the innuendo, and the tacit suggestions in the material could be seen by a fair-minded lay observer as painting a picture of the appellant as a man of poor or doubtful character': CNY17 at [124]. The AUSTRAC reports here do not rise nearly so high.
68 The applicant relied on the decision of the Full Court in EVS17 v Minister for Immigration and Border Protection [2019] FCAFC 20; (2019) 268 FCR 299. But with respect it is difficult to see how that case is relevant here. It concerned a failure by the Secretary to give medical documents to the Authority. The Minister had conceded that this was a failure to comply with s 473CB. The Full Court held that it was a material error, because it would have been open to the Authority to consider the medical documents to be corroborative of the appellant's claims: see [50]-[54]. But in this case, there is no breach of s 473CB either alleged or apparent, and no failure to provide potentially relevant documents, and the documents that are in issue here are not potentially supportive of the applicant's claims. The situation is entirely different to that in EVS17.